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 March 31, 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	April 30, 2024
Common Stock, $0.01 Par Value	359,752,833	Shares

2

F.N.B. CORPORATION

FORM 10-Q

March 31, 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	9
	Notes to Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	53
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	81
Item 4.	Controls and Procedures	81
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	82
Item 1A.	Risk Factors	82
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	82
Item 3.	Defaults Upon Senior Securities	82
Item 4.	Mine Safety Disclosures	82
Item 5.	Other Information	82
Item 6.	Exhibits	82
Signatures		83

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)

	March 31, 2024		December 31, 2023
	(Unaudited)
Assets
Cash and due from banks	$	351	$	447
Interest-bearing deposits with banks	1,136		1,129
Cash and Cash Equivalents	1,487		1,576
Debt securities available for sale (amortized cost of $3,449 and $3,460; allowance for credit losses of $0 and $0)	3,226		3,254
Debt securities held to maturity (fair value of $3,547 and $3,593; allowance for credit losses of $0 and $0)	3,893		3,911
Loans held for sale (includes $93 and $150 measured at fair value) (1)	107		488
Loans and leases, net of unearned income of $95 and $91 (includes $46 and $45 measured at fair value) (1)	32,584		32,323
Allowance for credit losses on loans and leases	(406)		(406)
Net Loans and Leases	32,178		31,917
Premises and equipment, net	474		461
Goodwill	2,477		2,477
Core deposit and other intangible assets, net	65		69
Bank owned life insurance	663		660
Other assets	1,326		1,345
Total Assets	$	45,896	$	46,158
Liabilities
Deposits:
Non-interest-bearing demand	$	9,982	$	10,222
Interest-bearing demand	14,679		14,809
Savings	3,389		3,465
Certificates and other time deposits	6,685		6,215
Total Deposits	34,735		34,711
Short-term borrowings	2,074		2,506
Long-term borrowings	2,121		1,971
Other liabilities	960		920
Total Liabilities	39,890		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 – 374,970,621 and 374,939,537 shares	4		4
Additional paid-in capital	4,694		4,692
Retained earnings	1,740		1,669
Accumulated other comprehensive loss	(250)		(235)
Treasury stock – 15,604,305 and 16,110,120 shares at cost	(182)		(187)
Total Stockholders’ Equity	6,006		6,050
Total Liabilities and Stockholders’ Equity	$	45,896	$	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 March 31,
	2024		2023
Interest Income
Loans and leases, including fees	$	481	$	394
Securities:
Taxable	46		36
Tax-exempt	7		7
Other	9		7
Total Interest Income	543		444
Interest Expense
Deposits	170		84
Short-term borrowings	28		10
Long-term borrowings	26		13
Total Interest Expense	224		107
Net Interest Income	319		337
Provision for credit losses	14		14
Net Interest Income After Provision for Credit Losses	305		323
Non-Interest Income
Service charges	21		20
Interchange and card transaction fees	13		12
Trust services	11		11
Insurance commissions and fees	7		8
Securities commissions and fees	8		7
Capital markets income	6		7
Mortgage banking operations	8		5
Dividends on non-marketable equity securities	6		4
Bank owned life insurance	3		3
Other	5		2
Total Non-Interest Income	88		79
Non-Interest Expense
Salaries and employee benefits	129		120
Net occupancy	20		17
Equipment	24		22
Amortization of intangibles	4		5
Outside services	23		20
Marketing	5		4
FDIC insurance	13		7
Bank shares and franchise taxes	4		4
Merger-related	—		2
Other	15		19
Total Non-Interest Expense	237		220
Income Before Income Taxes	156		182
Income taxes	34		35
Net Income	122		147
Preferred stock dividends	6		2
Net Income Available to Common Stockholders	$	116	$	145
Earnings per Common Share
Basic	$	0.32	$	0.40
Diluted	0.32		0.40

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 March 31,
	2024		2023
Net income	$	122	$	147
Other comprehensive income (loss):
Securities available for sale:
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $(4) and $10	(13)		35
Derivative instruments:
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $(3) and $1	(9)		4
Reclassification adjustment for gains included in net income, net of tax expense of $2 and $1	7		3
Pension and postretirement benefit obligations:
Unrealized gains arising during the period, net of tax expense of $0 and $0	—		—
Other Comprehensive Income (Loss)	(15)		42
Comprehensive Income (Loss)	$	107	$	189

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 March 31, 2023
Balance at beginning of period	$	107	$	4	$	4,696	$	1,370	$	(357)	$	(167)	$	5,653
Comprehensive income (loss)							147		42				189
Dividends declared:
Preferred stock: $18.13/share							(2)						(2)
Common stock: $0.12/share							(44)						(44)
Issuance of common stock			—		(13)						7		(6)
Repurchase of common stock											(12)		(12)
Restricted stock compensation					10								10
Balance at end of period	$	107	$	4	$	4,693	$	1,471	$	(315)	$	(172)	$	5,788
Three Months Ended March 31, 2024
Balance at beginning of period	$	107	$	4	$	4,692	$	1,669	$	(235)	$	(187)	$	6,050
Comprehensive income (loss)							122		(15)				107
Dividends declared:
Preferred stock: $18.13/share							(2)						(2)
Common stock: $0.12/share							(44)						(44)
Redemption of preferred stock	(107)						(4)						(111)
Issuance of common stock			—		(8)		—				5		(3)
Restricted stock compensation					10								10
Adoption of new accounting standard							(1)						(1)
Balance at end of period	$	—	$	4	$	4,694	$	1,740	$	(250)	$	(182)	$	6,006

See accompanying Notes to Consolidated Financial Statements (unaudited)

8

F.N.B. CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in millions)

Unaudited

	Three Months Ended March 31,
	2024		2023
Operating Activities
Net income	$	122	$	147
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities:
Depreciation, amortization and accretion	14		21
Provision for credit losses	14		14
Deferred tax expense (benefit)	15		2
Loans originated for sale	(313)		(215)
Loans sold	356		221
Net (gain) loss on sale of loans	(3)		3
Net change in:
Interest receivable	(15)		(4)
Interest payable	(5)		5
Bank owned life insurance, excluding purchases	(3)		(2)
Other, net	63		(173)
Net cash flows provided by operating activities	245		19
Investing Activities
Net change in loans and leases, excluding sales and transfers	(261)		(415)
Debt securities available for sale:
Purchases	(460)		—
Maturities/payments	473		116
Debt securities held to maturity:
Purchases	(96)		(75)
Maturities/payments	117		90
Increase in premises and equipment	(29)		(33)
Net proceeds from sales of portfolio loans	332		—
Net cash flows provided by (used in) investing activities	76		(317)
Financing Activities
Net change in:
Demand (non-interest bearing and interest bearing) and savings accounts	(446)		(1,717)
Time deposits	469		1,136
Short-term borrowings	(432)		776
Proceeds from issuance of long-term borrowings	161		512
Repayment of long-term borrowings	(11)		(306)
Redemption of preferred stock	(111)		—
Repurchases of common stock	—		(12)
Cash dividends paid:
Preferred stock	(2)		(2)
Common stock	(44)		(44)
Other, net	6		4
Net cash flows provided by (used in) financing activities	(410)		347
Net Increase (Decrease) in Cash and Cash Equivalents	(89)		49
Cash and cash equivalents at beginning of period	1,576		1,674
Cash and Cash Equivalents at End of Period	$	1,487	$	1,723

See accompanying Notes to Consolidated Financial Statements (unaudited)

9

F.N.B. CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

March 31, 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 March 31, 2024, we had 348 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 March 31, 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.

10

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.

11

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.

12

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 March 31, 2024 and December 31, 2023. Accrued interest receivable on AFS debt securities totaled $12.2 million at March 31, 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:
March 31, 2024
U.S. Treasury	$	124	$	—	$	(1)	$	123
U.S. government agencies	72		—		—		72
U.S. government-sponsored entities	276		—		(4)		272
Residential MBS:
Agency MBS	959		1		(66)		894
Agency collateralized mortgage obligations	909		—		(116)		793
Agency commercial MBS	1,038		4		(37)		1,005
States of the U.S. and political subdivisions (municipals)	30		—		(3)		27
Other debt securities	41		—		(1)		40
Total debt securities AFS	$	3,449	$	5	$	(228)	$	3,226

(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

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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 March 31, 2024 and December 31, 2023, respectively. Accrued interest receivable on HTM debt securities totaled $13.2 million and $14.7 million at March 31, 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:
March 31, 2024
U.S. Treasury	$	1	$	—	$	—	$	1
U.S. government agencies	1		—		—		1
U.S. government-sponsored entities	28		—		—		28
Residential MBS:
Agency MBS	1,018		1		(105)		914
Agency collateralized mortgage obligations	797		—		(108)		689
Agency commercial MBS	1,023		2		(51)		974
States of the U.S. and political subdivisions (municipals)	1,009		1		(85)		925
Other debt securities	16		—		(1)		15
Total debt securities HTM	$	3,893	$	4	$	(350)	$	3,547

(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 three months ended March 31, 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 84.7% of these securities backed or sponsored by the U.S. government as of March 31, 2024.

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As of March 31, 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	$	14	$	14	$	2	$	2
Due after one year but within five years	464		456		87		84
Due after five years but within ten years	35		34		224		211
Due after ten years	30		30		742		673
	543		534		1,055		970
Residential MBS:
Agency MBS	959		894		1,018		914
Agency collateralized mortgage obligations	909		793		797		689
Agency commercial MBS	1,038		1,005		1,023		974
Total debt securities	$	3,449	$	3,226	$	3,893	$	3,547

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)	March 31, 2024			December 31, 2023
Securities pledged (carrying value):
To secure public deposits, trust deposits and for other purposes as required by law	$	5,846		$	6,190
As collateral for short-term borrowings	270			250
Securities pledged as a percent of total securities	85.9		%	89.9		%

15

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
March 31, 2024
U.S. Treasury	—	$	—	$	—	2	$	73	$	(1)	2	$	73	$	(1)
U.S. government agencies	2	3		—		13	33		—		15	36		—
U.S. government-sponsored entities	4	99		—		7	123		(4)		11	222		(4)
Residential MBS:
Agency MBS	4	85		—		104	703		(66)		108	788		(66)
Agency collateralized mortgage obligations	—	—		—		69	793		(116)		69	793		(116)
Agency commercial MBS	10	334		(3)		20	366		(34)		30	700		(37)
States of the U.S. and political subdivisions (municipals)	—	—		—		13	27		(3)		13	27		(3)
Other debt securities	1	3		—		6	16		(1)		7	19		(1)
Total	21	$	524	$	(3)	234	$	2,134	$	(225)	255	$	2,658	$	(228)
	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 March 31, 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.

16

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 March 31, 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 $56.3 million as of March 31, 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 March 31, 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 March 31, 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 March 31, 2024 or December 31, 2023 and there were no securities that were past due or on non-accrual at either date.

17

NOTE 4.    LOANS AND LEASES

Accrued interest receivable on loans and leases, which totaled $139.2 million at March 31, 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)	March 31, 2024		December 31, 2023
Commercial real estate	$	12,447	$	12,305
Commercial and industrial	7,347		7,482
Commercial leases	615		599
Other	140		110
Total commercial loans and leases	20,549		20,496
Direct installment	2,712		2,741
Residential mortgages	6,887		6,640
Indirect installment	1,142		1,149
Consumer lines of credit	1,294		1,297
Total consumer loans	12,035		11,827
Total loans and leases, net of unearned income	$	32,584	$	32,323

The remaining accretable discount included in the amortized cost of acquired loans was $38.4 million and $42.6 million at March 31, 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 or rents received by our borrowers from their tenant(s) on both a property and global basis are the primary default risk drivers, including rents paid by stand-alone business customers for owner-occupied properties;

•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

18

•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)	March 31, 2024		December 31, 2023
Commercial real estate:
Percent owner-occupied	29.0	%	29.0	%
Percent non-owner-occupied	71.0		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.

19

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

March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	278	$	1,534	$	2,150	$	2,222	$	1,396	$	3,670	$	244	$	11,494
Special Mention	—		19		103		100		131		287		17		657
Substandard	4		6		29		46		18		190		3		296
Total commercial real estate	282		1,559		2,282		2,368		1,545		4,147		264		12,447
Commercial real estate current period gross charge-offs	—		0.1		0.1		—		—		6.9		—		7.1
Commercial and Industrial:
Risk Rating:
Pass	282		1,445		1,285		765		507		778		1,754		6,816
Special Mention	—		34		21		67		2		74		33		231
Substandard	—		29		28		66		8		64		105		300
Total commercial and industrial	282		1,508		1,334		898		517		916		1,892		7,347
Commercial and industrial current period gross charge-offs	—		0.3		0.2		0.4		0.6		2.4		—		3.9
Commercial Leases:
Risk Rating:
Pass	73		222		127		76		42		53		—		593
Special Mention	—		—		—		—		1		1		—		2
Substandard	—		7		2		4		6		1		—		20
Total commercial leases	73		229		129		80		49		55		—		615
Commercial leases current period gross charge-offs	—		—		—		—		—		0.2		—		0.2
Other Commercial:
Risk Rating:
Pass	7		53		—		—		—		7		73		140
Total other commercial	7		53		—		—		—		7		73		140
Other commercial current period gross charge-offs	—		—		—		—		—		0.9		—		0.9
Total commercial loans and leases	644		3,349		3,745		3,346		2,111		5,125		2,229		20,549

20

March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
CONSUMER
Direct Installment:
Current	68		326		691		759		379		474		—		2,697
Past due	—		1		2		1		1		10		—		15
Total direct installment	68		327		693		760		380		484		—		2,712
Direct installment current period gross charge-offs	—		—		—		0.1		—		0.1		—		0.2
Residential Mortgages:
Current	283		1,464		1,666		1,493		783		1,138		1		6,828
Past due	—		7		8		5		3		36		—		59
Total residential mortgages	283		1,471		1,674		1,498		786		1,174		1		6,887
Residential mortgages current period gross charge-offs	—		—		—		—		—		—		—		—
Indirect Installment:
Current	101		293		356		214		86		74		—		1,124
Past due	—		2		7		6		2		1		—		18
Total indirect installment	101		295		363		220		88		75		—		1,142
Indirect installment current period gross charge-offs	—		0.5		1.3		0.9		0.1		0.1		—		2.9
Consumer Lines of Credit:
Current	2		36		59		14		2		117		1,049		1,279
Past due	—		—		—		1		1		12		1		15
Total consumer lines of credit	2		36		59		15		3		129		1,050		1,294
Consumer lines of credit current period gross charge-offs	—		—		0.1		—		—		0.2		—		0.3
Total consumer loans	454		2,129		2,789		2,493		1,257		1,862		1,051		12,035
Total loans and leases	$	1,098	$	5,478	$	6,534	$	5,839	$	3,368	$	6,987	$	3,280	$	32,584
Total charge-offs	$	—	$	0.9	$	1.7	$	1.4	$	0.7	$	10.8	$	—	$	15.5

21

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

22

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.

23

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
March 31, 2024
Commercial real estate	$	10	$	—	$	38	$	48	$	12,399	$	12,447	$	18
Commercial and industrial	7		—		39		46		7,301		7,347		20
Commercial leases	2		—		3		5		610		615		—
Other	—		1		2		3		137		140		—
Total commercial loans and leases	19		1		82		102		20,447		20,549		38
Direct installment	8		1		6		15		2,697		2,712		—
Residential mortgages	39		11		9		59		6,828		6,887		—
Indirect installment	15		1		2		18		1,124		1,142		—
Consumer lines of credit	6		3		6		15		1,279		1,294		—
Total consumer loans	68		16		23		107		11,928		12,035		—
Total loans and leases	$	87	$	17	$	105	$	209	$	32,375	$	32,584	$	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

24

Following is a summary of non-performing assets:

TABLE 4.6

(dollars in millions)	March 31, 2024			December 31, 2023
Non-accrual loans	$	105		$	107
Total non-performing loans and leases	105			107
Other real estate owned	3			3
Total non-performing assets	$	108		$	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	0.38			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 $1.3 million at March 31, 2024 and $1.2 million at December 31, 2023. The recorded investment of residential-secured consumer OREO for which formal foreclosure proceedings are in process at March 31, 2024 and December 31, 2023 totaled $13.1 million and $9.4 million, respectively.

Approximately $63.6 million of commercial loans are collateral dependent at March 31, 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 $0.01 million and $0.02 million at March 31, 2024 and March 31, 2023, respectively, and is excluded from the amortized cost of loan modifications in the tables that follow.

25

The following table shows the amortized cost basis at the end of the reporting period of the loans modified 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 March 31, 2024
Term Extension
Direct installment	$	0.2	0.01	%	The modified loans had an average increase in term of 114 months, extending the maturity date.
Residential mortgages	0.7		0.01		The modified loans had an average increase in term of 46 months, extending the maturity date.
Consumer lines of credit	0.5		0.04		The modified loans had an average increase in term of 235 months, extending the maturity date.
Total	1.4
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	0.6		0.01		Multiple modifications were made with no material financial effect.
Total	1.5
Balloon Payment
Commercial real estate	0.6		—		Multiple modifications were made with no material financial effect.
Total	0.6
Other
Commercial real estate	4.1		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	4.7
Total Outstanding Modified	$	8.3

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(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Three Months Ended March 31, 2023
Term Extension
Commercial and industrial	$	2.4	0.03	%	The modified loans had an average increase in term of 9 months, extending the maturity date.
Direct installment	0.1		—		The repayment on the loans modified were extended, lowering the monthly repayment.
Residential mortgages	0.1		—		The repayment on the loans modified was extended, lowering the monthly repayment.
Consumer lines of credit	0.2		0.02		The repayment on the loans modified was extended, lowering the monthly repayment.
Total	2.8
Term Extension and Rate Reduction
Direct installment	0.1		—		The term was extended, with a weighted average yield reduction of 134 basis points.
Residential mortgages	0.3		0.01		The term was extended, with a weighted average yield reduction of 113 basis points.
Total	0.4
Other
Commercial real estate	0.6		0.01		Multiple modifications were made with no material financial effect.
Residential mortgages	0.1		—		Multiple modifications were made with no material financial effect.
Total	0.7
Total Outstanding Modified	$	3.9

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 three 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 March 31, 2024 and December 31, 2023, respectively, and pooled reserves for individual loans of $2.5 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 $3.8 million at both March 31, 2024 and December 31, 2023. Upon default of an individual loan, our charge-off policy is followed for that class of loan.

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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 March 31, 2024
Commercial real estate	$	0.3	$	0.9	$	0.6	$	8.7	$	10.5
Commercial and industrial	21.5		0.3		—		0.6		22.4
Total commercial loans and leases	21.8		1.2		0.6		9.3		32.9
Residential mortgages	0.2		—		—		—		0.2
Total consumer loans	0.2		—		—		—		0.2
Total	$	22.0	$	1.2	$	0.6	$	9.3	$	33.1

(in millions)	Term Extension		Term Extension and Rate Reduction		Other		Total Outstanding Modified
Three Months Ended March 31, 2023
Commercial real estate	$	—	$	—	$	0.6	$	0.6
Commercial and industrial	1.6		—		—		1.6
Total commercial loans and leases	1.6		—		0.6		2.2
Residential mortgages	—		0.3		—		0.3
Consumer lines of credit	0.1		—		—		0.1
Total consumer loans	0.1		0.3		—		0.4
Total	$	1.7	$	0.3	$	0.6	$	2.6

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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
March 31, 2024
Commercial real estate	$	14.9	$	—	$	—
Commercial and industrial	20.0		—		—
Total commercial loans and leases	34.9		—		—
Direct installment	2.0		—		0.2
Residential mortgages	3.1		1.1		0.8
Consumer lines of credit	1.3		0.4		—
Total consumer loans	6.4		1.5		1.0
Total	$	41.3	$	1.5	$	1.0
(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
March 31, 2023
Commercial real estate	$	0.6	$	—	$	—
Commercial and industrial	2.4		—		—
Total commercial loans and leases	3.0		—		—
Direct installment	0.2		—		—
Residential mortgages	0.2		—		0.3
Consumer lines of credit	0.2		—		—
Total consumer loans	0.6		—		0.3
Total	$	3.6	$	—	$	0.3

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.

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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 March 31, 2024
Commercial real estate	$	166.6	$	(7.1)	$	0.4	$	(6.7)	$	2.0	$	161.9
Commercial and industrial	87.8		(3.9)		0.8		(3.1)		2.2		86.9
Commercial leases	21.2		(0.2)		—		(0.2)		1.4		22.4
Other	3.7		(0.9)		0.3		(0.6)		1.0		4.1
Total commercial loans and leases	279.3		(12.1)		1.5		(10.6)		6.6		275.3
Direct installment	33.8		(0.2)		0.2		—		(3.2)		30.6
Residential mortgages	70.5		—		—		—		8.8		79.3
Indirect installment	12.8		(2.9)		0.6		(2.3)		2.0		12.5
Consumer lines of credit	9.2		(0.3)		0.4		0.1		(0.7)		8.6
Total consumer loans	126.3		(3.4)		1.2		(2.2)		6.9		131.0
Total allowance for credit losses on loans and leases	405.6		(15.5)		2.7		(12.8)		13.5		406.3
Allowance for unfunded loan commitments	21.5		—		—		—		0.4		21.9
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	427.1	$	(15.5)	$	2.7	$	(12.8)	$	13.9	$	428.2

(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 March 31, 2023
Commercial real estate	$	162.1	$	(6.5)	$	1.0	$	(5.5)	$	2.6	$	159.2
Commercial and industrial	102.1		(5.8)		0.9		(4.9)		4.5		101.7
Commercial leases	13.5		—		—		—		1.3		14.8
Other	4.0		(0.8)		0.3		(0.5)		0.5		4.0
Total commercial loans and leases	281.7		(13.1)		2.2		(10.9)		8.9		279.7
Direct installment	35.9		(0.3)		0.2		(0.1)		0.4		36.2
Residential mortgages	55.5		(0.4)		0.2		(0.2)		5.1		60.4
Indirect installment	17.3		(2.6)		0.6		(2.0)		1.3		16.6
Consumer lines of credit	11.3		(0.3)		0.3		—		(0.8)		10.5
Total consumer loans	120.0		(3.6)		1.3		(2.3)		6.0		123.7
Total allowance for credit losses on loans and leases	401.7		(16.7)		3.5		(13.2)		14.9		403.4
Allowance for unfunded loan commitments	21.4		—		—		—		(0.9)		20.5
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	423.1	$	(16.7)	$	3.5	$	(13.2)	$	14.0	$	423.9

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

TABLE 5.2

	Three Months Ended March 31,
	2024		2023
(in millions)
Balance at beginning of period	$	21.5	$	21.4
Provision for unfunded loan commitments and letters of credit:
Commercial portfolio	0.5		(0.9)
Consumer portfolio	(0.1)		—
Balance at end of period	$	21.9	$	20.5

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 March 31, 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 March 31, 2024, the macroeconomic variables that we utilized included, but were not limited to: (i) the purchase only Housing Price Index, which increases 7.4% over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which increases 3.6% over our R&S forecast period, (iii) S&P Volatility, which increases 19.6% in 2024 and decreases 3.5% in 2025 and (iv) personal and business bankruptcies, which increase steadily over the R&S forecast period but average below 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 historical through the cycle period.

The ACL on loans and leases of $406.3 million at March 31, 2024 increased $0.7 million, or 0.2%, from December 31, 2023. Our ending ACL coverage ratio at March 31, 2024 was 1.25%, compared to 1.25% at December 31, 2023. Total provision for credit losses for the three months ended March 31, 2024 was $13.9 million compared to $14.1 million for the same period of 2023. The first quarter of 2024 reflected net charge-offs of $12.8 million, or 0.16% annualized of average total loans, compared to $13.2 million, or 0.18% annualized, in the first quarter 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)	March 31, 2024		December 31, 2023
Mortgage loans sold with servicing retained	$	5,924	$	5,729

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

TABLE 6.2

	Three Months Ended March 31,
(in millions)	2024		2023
Mortgage loans sold with servicing retained	$	316	$	198
Pre-tax net gains (losses) resulting from above loan sales (1)	6		—
Mortgage servicing fees (1)	4		3

(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 March 31,
(in millions)	2024		2023
Balance at beginning of period	$	59.5	$	52.8
Additions	3.9		2.5
Payoffs and curtailments	(0.5)		(0.3)
Impairment (charge) / recovery	0.2		—
Amortization / other	(0.6)		(0.7)
Balance at end of period	$	62.5	$	54.3
Fair value, beginning of period	$	71.8	$	68.6
Fair value, end of period	75.2		67.8

There was no valuation allowance for MSRs at March 31, 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.

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

TABLE 6.4

(dollars in millions)	March 31, 2024			December 31, 2023
Weighted average life (months)	93			92
Constant prepayment rate (annualized)	7.8		%	7.9		%
Discount rate	10.3		%	10.2		%
Effect on fair value due to change in interest rates:
+2.00%	$	6		$	7
+1.00%	5			5
+0.50%	3			3
+0.25%	2			2
-0.25%	(2)			(2)
-0.50%	(4)			(4)
-1.00%	(7)			(8)
-2.00%	(16)			(21)
-3.00%	(34)			(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.

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 March 31, 2024, we had operating lease right-of-use assets and operating lease liabilities of $180.2 million and $212.4 million, respectively. We have finance lease right-of-use assets and finance lease liabilities of $31.1 million and $32.4 million, respectively.

Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of March 31, 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 $39.6 million in right-of-use assets and $44.8 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. During 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.

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The components of lease expense were as follows:

TABLE 7.1

	Three Months Ended March 31,
(dollars in millions)	2024		2023
Operating lease cost	$	10	$	8
Variable lease cost	1		1
Finance lease cost	1		1
Total lease cost	$	12	$	10

Other information related to leases is as follows:

TABLE 7.2

	Three Months Ended March 31,
(dollars in millions)	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7		$	7
Operating cash flows from finance leases	$	—		$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2		$	—
Finance leases	$	—		$	—
Weighted average remaining lease term (years):
Operating leases	8.68			9.13
Finance leases	19.27			20.61
Weighted average discount rate:
Operating leases	3.0		%	2.6		%
Finance leases	3.2		%	2.8		%

Future cash flows of lease liabilities are as follows:

TABLE 7.3

(in millions)	Operating Leases		Finance Leases		Total Leases
March 31, 2024
2024	$	32	$	2	$	34
2025	28		2		30
2026	25		2		27
2027	22		2		24
2028	20		2		22
Later years	136		34		170
Total lease payments	263		44		307
Less: imputed interest	(51)		(12)		(63)
Present value of lease liabilities	$	212	$	32	$	244

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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
March 31, 2024
Trust preferred securities (1)	$	3	$	73	$	—
Tax credit partnerships	174		79		174
Other investments	28		—		28
Total	$	205	$	152	$	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,

35

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 this 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)	March 31, 2024		December 31, 2023
Tax credit investments included in other assets	$	95	$	81
Unfunded tax credit investments	79		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 March 31,
(in millions)	2024		2023
Provision for income taxes:
Amortization of tax credit investments under proportional method	$	5	$	4
Tax credits from tax credit investments	(5)		(4)
Other tax benefits related to tax credit investments	(1)		(1)
Total impact on provision for income taxes	$	(1)	$	(1)

Other Investments

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

36

NOTE 9.    BORROWINGS

Following is a summary of short-term borrowings:

TABLE 9.1

(in millions)	March 31, 2024		December 31, 2023
Securities sold under repurchase agreements	$	242	$	233
Federal Home Loan Bank advances	1,440		1,900
Federal funds purchased	275		260
Subordinated notes	117		113
Total short-term borrowings	$	2,074	$	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, $540.0 million, or 37.5%, had overnight maturities as of March 31, 2024. We had $450.0 million, or 23.7%, of short-term FHLB advances with overnight maturities as of December 31, 2023. At March 31, 2024, $300.0 million, or 20.8%, 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)	March 31, 2024		December 31, 2023
Federal Home Loan Bank advances	$	1,350	$	1,200
Senior notes	349		349
Subordinated notes	82		82
Junior subordinated debt	73		73
Other subordinated debt	267		267
Total long-term borrowings	$	2,121	$	1,971

Our banking affiliate has available credit with the FHLB of $11.4 billion, of which $2.8 billion was utilized and included in short-term and long-term borrowings and $650.0 million was utilized for a letter of credit for pledging of public funds as of March 31, 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 March 31, 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 a spread of 32.6 basis points for the three months ended March 31, 2024. There were no variable rate advances for the year ended December 31, 2023.

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The following table provides information relating to our senior notes and other subordinated debt as of March 31, 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:
7.968% Fixed-To-Floating Rate Subordinated Notes due 2029 (1)	120		118		119		2/14/2029	7.968	%
4.875% Subordinated Notes due 2025	100		98		100		10/2/2025	4.875	%
8.605% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 (2) (4)	25		26		24		12/6/2028	8.605	%
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 March 31, 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	7.24	%	SOFR + 165 bps
Yadkin Valley Statutory Trust I	25		1		23		12/15/2037	6.91	%	SOFR + 132 bps
FNB Financial Services Capital Trust I	25		1		23		9/30/2035	7.02	%	SOFR + 146 bps
Patapsco Statutory Trust I	5		—		5		12/15/2035	7.07	%	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 $8.1 billion as of March 31, 2024.

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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. 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

	March 31, 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	$	1,700	$	—	$	2	$	1,800	$	1	$	—
Interest rate swaps – not designated	5,645		99		17		5,660		74		35
Total subject to master netting arrangements	7,345		99		19		7,460		75		35
Not subject to master netting arrangements:
Interest rate swaps – not designated	5,645		17		341		5,660		35		289
Interest rate lock commitments – not designated	242		3		—		239		5		—
Forward delivery commitments – not designated	260		—		—		294		1		4
Credit risk contracts – not designated	709		—		—		629		—		—
Total not subject to master netting arrangements	6,856		20		341		6,822		41		293
Total	$	14,201	$	119	$	360	$	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.

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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
	Three Months Ended March 31,					Three Months Ended March 31,
(in millions)	2024		2023			2024		2023
Derivatives in cash flow hedging relationships:
Interest rate contracts	$	(12)	$	5	Interest income (expense)	$	(9)	$	(4)
					Other income	—		—

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

TABLE 10.3

	Three months ended March 31,
	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)	$	481	$	28	$	394	$	10
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	(12)		4		(10)		6

As of March 31, 2024, the maximum length of time over which forecasted interest cash flows are hedged is 2.1 years. In the twelve months that follow March 31, 2024, we expect to reclassify from the amount currently reported in AOCI net derivative losses of $37.8 million ($29.4 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 March 31, 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 three months ended March 31, 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.

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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 $583.5 million as of March 31, 2024 have remaining terms ranging from two months 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 March 31, 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 March 31, 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

		Three Months Ended March 31,
(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		(1)
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 March 31, 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
March 31, 2024
Derivative Assets
Interest rate contracts:
Not designated	$	99	$	—	$	99	$	—
Total	$	99	$	—	$	99	$	—

Derivative Liabilities
Interest rate contracts:
Designated	$	2	$	—	$	2	$	—
Not designated	17		—		17		—
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.

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

TABLE 11.1

(in millions)	March 31, 2024		December 31, 2023
Commitments to extend credit	$	14,242	$	13,656
Standby letters of credit	253		257

At March 31, 2024, funding of 76.4% 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

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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 $21.9 million at March 31, 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 we are routinely 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 threatened claims, litigation, investigations, 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 current knowledge and understanding, and advice of counsel, we do not believe that judgments, sanctions, settlement resolutions, regulatory actions, investigations, 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. Under the settlement, FNBPA has agreed to provide $11.75 million in mortgage loan subsidies on mortgages originated in the Charlotte and Winston-Salem, North Carolina markets beginning in 2024. 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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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 546,838 and 470,173 restricted stock units during the three months ended March 31, 2024 and 2023, respectively, including 328,104 and 282,106 performance-based restricted stock units during those same periods, respectively. We have shareholder approval under the Plan to issue up to 7,397,956 shares of common stock. As of March 31, 2024, we had 1,816,061 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

	Three Months Ended March 31,
	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	546,838	14.00		470,173	15.06
Net adjustment	320,315	—		288,800	8.04
Vested	(873,153)	11.12		(1,198,383)	8.31
Forfeited/expired/canceled	(12,460)	12.04		(539,233)	7.80
Dividend reinvestment	—	—		37,587	12.48
Unvested units outstanding at end of period	3,484,138	13.04		3,880,126	11.69

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

TABLE 12.2

(in millions)	Three Months Ended March 31,
	2024		2023
Stock-based compensation expense	$	9	$	11
Tax benefit related to stock-based compensation expense	2		2
Fair value of units vested	11		17

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As of March 31, 2024, there was $8.7 million of unrecognized compensation cost related to unvested restricted stock units.

The components of the restricted stock units as of March 31, 2024 are as follows:

TABLE 12.3

(dollars in millions)	Service- Based Units		Performance- Based Units		Total
Unvested restricted stock units	2,527,342		956,796		3,484,138
Unrecognized compensation expense	$	8	$	1	$	9
Intrinsic value	$	36	$	13	$	49
Weighted average remaining life (in years)	1.66		1.83		1.71

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 March 31,
(dollars in millions)	2024			2023
Current income taxes:
Federal taxes	$	17		$	31
State taxes	2			2
Total current income taxes	19			33
Deferred income taxes:
Federal taxes	13			2
State taxes	2			—
Total deferred income taxes	15			2
Total income taxes	$	34		$	35
Statutory federal tax rate	21.0		%	21.0		%
Effective tax rate	21.5			19.5

Income tax expense was lower for the three months ended March 31, 2024 due to lower pre-tax earnings, partially offset by lower stock compensation vesting deductions and higher levels of proportional amortization for certain tax credit investments resulting from the adoption of FASB ASU 2023-02. The effective tax rate increased in the first quarter of 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 $110.1 million and $120.8 million at March 31, 2024 and December 31, 2023, respectively.

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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
Three Months Ended March 31, 2024
Balance at beginning of period	$	(160)	$	(33)	$	(42)	$	(235)
Other comprehensive (loss) income before reclassifications	(13)		(9)		—		(22)
Amounts reclassified from AOCI	—		7		—		7
Net current period other comprehensive (loss) income	(13)		(2)		—		(15)
Balance at end of period	$	(173)	$	(35)	$	(42)	$	(250)

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.

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

TABLE 15.1

	Three Months Ended March 31,
(dollars in millions, except per share data)	2024		2023
Net income	$	122	$	147
Less: Preferred stock dividends	6		2
Net income available to common stockholders	$	116	$	145
Basic weighted average common shares outstanding	361,246,402		360,858,904
Net effect of dilutive stock options and restricted stock	1,372,876		4,071,384
Diluted weighted average common shares outstanding	362,619,278		364,930,288
Earnings per common share:
Basic	$	0.32	$	0.40
Diluted	$	0.32	$	0.40

There were no anti-dilutive shares for the three months ended March 31, 2024 and 2023.

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NOTE 16.    CASH FLOW INFORMATION

Following is a summary of supplemental cash flow information:

TABLE 16.1

	Three Months Ended March 31,
(in millions)	2024		2023
Interest paid on deposits and other borrowings	$	229	$	101
Transfers of loans to other real estate owned	1		—
Loans transferred to portfolio from held for sale	9		15

We did not have any restricted cash as of March 31, 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.

47

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 March 31, 2024
Interest income	$	542	$	—	$	—	$	1	$	543
Interest expense	218		—		—		6		224
Net interest income	324		—		—		(5)		319
Provision for credit losses	14		—		—		—		14
Non-interest income	62		20		7		(1)		88
Non-interest expense (1)	211		13		4		5		233
Amortization of intangibles	4		—		—		—		4
Income tax expense (benefit)	34		2		1		(3)		34
Net income (loss)	123		5		2		(8)		122
Total assets	45,639		43		33		181		45,896
Total intangibles	2,507		9		26		—		2,542
At or for the Three Months Ended March 31, 2023
Interest income	$	442	$	—	$	—	$	2	$	444
Interest expense	98		—		—		9		107
Net interest income	344		—		—		(7)		337
Provision for credit losses	14		—		—		—		14
Non-interest income	55		18		7		(1)		79
Non-interest expense (1)	195		13		4		3		215
Amortization of intangibles	5		—		—		—		5
Income tax expense (benefit)	38		1		—		(4)		35
Net income (loss)	147		4		3		(7)		147
Total assets	43,998		38		31		79		44,146
Total intangibles	2,526		9		26		—		2,561

(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
March 31, 2024
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury	$	123	$	—	$	—	$	123
U.S. government agencies	—		72		—		72
U.S. government-sponsored entities	—		272		—		272
Residential MBS:
Agency MBS	—		894		—		894
Agency collateralized mortgage obligations	—		793		—		793
Agency commercial MBS	—		1,005		—		1,005
States of the U.S. and political subdivisions (municipals)	—		27		—		27
Other debt securities	—		40		—		40
Total debt securities available for sale	123		3,103		—		3,226
Loans held for sale	—		93		—		93
Loans receivable	—		—		46		46
Derivative financial instruments
Trading	—		115		—		115
Not for trading	—		1		3		4
Total derivative financial instruments	—		116		3		119
Total assets measured at fair value on a recurring basis	$	123	$	3,312	$	49	$	3,484
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	357	$	—	$	357
Not for trading	—		3		—		3
Total derivative financial instruments	—		360		—		360
Total liabilities measured at fair value on a recurring basis	$	—	$	360	$	—	$	360

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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
Three Months Ended March 31, 2024
Balance at beginning of period	$	—	$	—	$	5	$	5
Purchases, issuances, sales and settlements:
Issuances	—		—		3		3
Settlements	—		—		(5)		(5)
Transfers into Level 3	—		46		—		46
Balance at end of period	$	—	$	46	$	3	$	49
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 three months of 2024, $46.5 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 three 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
March 31, 2024
Collateral dependent loans	$	—	$	—	$	29	$	29
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 three months or twelve months ended March 31, 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 three months ended March 31, 2024 had a carrying amount of $29.4 million, which includes an allocated ACL of $2.5 million. The ACL includes a provision applicable to the current period fair value measurements of $2.5 million, which was included in provision for credit losses for the three months ended March 31, 2024.

MSRs measured at fair value on a non-recurring basis had a carrying value of $0.6 million, there was no valuation allowance as of March 31, 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
March 31, 2024
Financial Assets
Cash and cash equivalents	$	1,487	$	1,487	$	1,487	$	—	$	—
Debt securities available for sale	3,226		3,226		123		3,103		—
Debt securities held to maturity	3,893		3,547		—		3,547		—
Net loans and leases, including loans held for sale	32,285		30,591		—		93		30,498
Loan servicing rights	64		77		—		—		77
Derivative assets	119		119		—		116		3
Accrued interest receivable	175		175		175		—		—
Financial Liabilities
Deposits	34,735		34,679		28,050		6,629		—
Short-term borrowings	2,074		2,103		2,103		—		—
Long-term borrowings	2,121		2,158		—		1,386		772
Derivative liabilities	360		360		—		360		—
Accrued interest payable	64		64		64		—		—
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 three-month periods ended March 31, 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 three months ended March 31, 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.

•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,

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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 regulations or 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.

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, 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

54

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 first quarter of 2024 was $116.3 million or $0.32 per diluted common share, compared to net income available to common stockholders for the first quarter of 2023 of $144.5 million or $0.40 per diluted common share. On an operating basis, earnings per diluted common share (non-GAAP) was $0.34 for the first quarter of 2024, excluding $0.02 of significant items impacting earnings per diluted common share, while the first quarter of 2023 was $0.40, excluding less than $0.01 of significant items impacting earnings per diluted common share.

A key contributor to our earnings this quarter was a near-record level of non-interest income totaling $87.9 million as capital markets, wealth management, treasury management and mortgage banking produced strong results. Our continued profitability grew our capital base and led to a record tangible common equity ratio (non-GAAP) of 7.99%. Tangible book value (non-GAAP) grew 11%, year-over-year, reaching an all-time high of $9.64 per share. We experienced strong credit results in this environment which is a testament to our risk management culture with net charge-offs of $12.8 million, or 0.16%, and delinquencies and non-performing assets remaining at or near historically low levels. We experienced growth in the number of customers and prospects opening multiple accounts since introducing the Common Application to our eStore® platform, contributing to year-over-year growth of 6% and 2% for loans and deposits, respectively.

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

•Net interest income decreased $17.6 million, or 5.2%, to $319.0 million primarily due to higher deposit costs, including 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 38 basis points to 3.18% as a 72 basis point increase in the total yield on earnings assets (non-GAAP) was more than offset by total cost of funds increasing 115 basis points.

•On a linked-quarter basis, the net interest margin (FTE) (non-GAAP) decreased only 3 basis points to 3.18% as a 15 basis point increase in the total yield on earning assets (non-GAAP) to 5.40% was more than offset by a 19 basis point increase in total cost of funds to 2.33%.

•The provision for credit losses of $13.9 million supported loan growth and net charge-off activity.

•Non-interest income totaled $87.9 million, benefiting from our diversified business model with strong contributions from mortgage banking, capital markets and record wealth management revenues.

•Non-interest expense totaled $237.1 million, a decrease of $28.5 million, or 10.7%, on a linked-quarter basis. The first three months of 2024 included significant items of $1.2 million (pre-tax) of branch consolidation costs and $4.4 million (pre-tax) of FDIC special assessment, partially offset by a $2.6 million (pre-tax) reduction to the previously estimated loss on the indirect auto loan sale. The first three months of 2023 included a significant item of $2.1 million (pre-tax) of merger expenses. On an operating basis, non-interest expense (non-GAAP) totaled $234.1 million and increased $16.2 million, or 7.5%, when adjusting for significant items of $3.0 million in the first three months of 2024 compared to $2.1 million.

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•The effective tax rate was 21.5%, compared to 19.5%, due to lower stock compensation vesting deductions and higher levels of proportional amortization on certain tax credit investments.

Balance Sheet Highlights (period-end balances, March 31, 2024 compared to December 31, 2023, unless otherwise indicated)

•On a linked-quarter basis, period-end total loans and leases increased $261.4 million, or 3.3% annualized, as consumer loans increased $208.7 million and commercial loans and leases increased $52.6 million. Average loans and leases increased $113.4 million, or 1.4% annualized, linked quarter, with growth of $253.8 million in average commercial loans and leases offsetting the decrease in average consumer loans of $140.4 million with the consumer loan decline due to the sale of $332 million of indirect auto loans which closed in the first quarter of 2024.

•Period-end total loans and leases increased $1.9 billion, or 6.2%, as compared to March 31, 2023, reflecting organic growth across our diverse geographic footprint. Commercial loans and leases increased $1.0 billion, or 5.3%, and consumer loans increased $873.8 million, or 7.8%. Our organic 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 deposits slightly increased $24.5 million, or 0.3% annualized, even with the seasonal outflows during the current quarter. The mix of non-interest-bearing deposits to total deposits was stable and equaled 29% at both March 31, 2024 and December 31, 2023.

•Total average deposits totaled $34.2 billion consistent with the prior year quarter, led by increases in average time deposits of $2.1 billion that offset the decline in other deposit categories as customers continue to migrate deposits into higher-yielding deposit products.

•The ratio of loans to deposits was 93.8% and relatively stable with the prior quarter.

•The ratio of non-performing loans plus OREO to total loans and leases plus OREO decreased 5 basis points to 0.33%. Total delinquency increased 4 basis points to 0.64%, compared to 0.60% at March 31, 2023. Both measures continue to remain at or near historically low levels.

•The first quarter of 2024 reflected net charge-offs of $12.8 million, or 0.16% annualized of total average loans.

•The ACL was $406.3 million, an increase of $2.9 million compared to March 31, 2023, with the ratio of the ACL to total loans and leases decreasing 7 basis points to 1.25% reflecting net loan growth and charge-off activity.

•Tangible book value per common share (non-GAAP) of $9.64, increased $0.98, or 11.3%, compared to March 31, 2023. AOCI reduced the tangible book value per common share (non-GAAP) by $0.70 as of March 31, 2024, primarily due to the impact of higher interest rates on the fair value of AFS securities, compared to a $0.65 reduction as of December 31, 2023, and a $0.87 reduction as of March 31, 2023.

•The CET1 regulatory capital ratio was 10.21% benefiting from retained earnings growth and the aforementioned indirect auto loan sale in the quarter, compared to 10.04% at March 31, 2023.

•On February 15, 2024, we redeemed all our outstanding Series E Perpetual Preferred Stock and the final preferred dividend of $2.0 million was paid on the redemption date. The excess of the redemption value over the carrying value on the Series E Perpetual Preferred Stock of $4.0 million was considered a significant item impacting earnings.

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TABLE 1

	Three Months Ended March 31,
Quarterly Results Summary	2024			2023
Reported results
Net income available to common stockholders (millions)	$	116.3		$	144.5
Net income per diluted common share	0.32			0.40
Book value per common share (period-end)	16.71			15.76
Operating results (non-GAAP)
Operating net income available to common stockholders (millions)	122.7			146.1
Operating net income per diluted common share	0.34			0.40
Average diluted common shares outstanding (thousands)	362,619			364,930
Significant items impacting earnings(1) (millions)
Preferred dividend equivalent at redemption	$	(4.0)		$	—
Pre-tax merger-related expenses	—			(2.1)
After-tax impact of merger-related expenses	—			(1.6)
Pre-tax branch consolidation costs	(1.2)			—
After-tax impact of branch consolidation costs	(0.9)			—
Pre-tax FDIC assessment	(4.4)			—
After-tax impact of FDIC assessment	(3.5)			—
Pre-tax loss on indirect auto loan sale	2.6			—
After-tax impact of loss on indirect auto loan sale	2.1			—
Total significant items after-tax	$	(6.3)		$	(1.6)
Capital measures
Common equity tier 1	10.21		%	10.04		%
Tangible common equity to tangible assets (period-end) (non-GAAP)	7.99			7.50
Tangible book value per common share (period-end) (non-GAAP)	$	9.64		$	8.66
(1) Favorable (unfavorable) impact on earnings

RESULTS OF OPERATIONS

Three Months Ended March 31, 2024 Compared to the Three Months Ended March 31, 2023

Net income available to common stockholders for the first three months of 2024 was $116.3 million or $0.32 per diluted common share, compared to $144.5 million or $0.40 per diluted common share for the first three months of 2023. On an operating basis (non-GAAP), net income available to common stockholders for the first three months of 2024 was $122.7 million, or $0.34 per diluted common share, compared to $146.1 million or $0.40 per diluted common share for the first three months of 2023. Net interest income totaled $319.0 million, a decrease of $17.6 million, or 5.2%, compared to $336.7 million, as total average earning assets increased $2.0 billion, or 5.3%, including a $2.0 billion increase in average loans and leases from organic origination activity, partially offset by a $106.7 million decrease in average investment securities. The net interest margin (FTE) (non-GAAP) decreased 38 basis points to 3.18%, as the total cost of funds increased 115 basis points to 2.33% with a 132-basis point increase in interest-bearing deposit costs to 2.82%, as well as an increase of 28 basis points in long-term debt costs which includes the impact of additional liquidity following the banking industry disruption in 2023. These funding cost increases were partially offset by an increase in the yield on earning assets (non-GAAP) of 72 basis points to 5.40%, primarily due to higher yields on loans, investment securities and interest-bearing deposits with banks. Between March 31, 2023 and March 31, 2024, the FOMC raised the target Federal Funds interest rate by 50 basis points (with the last increase in July 2023). The provision for credit losses for the first three months of 2024 totaled $13.9 million, compared to $14.1 million. Non-interest income totaled $87.9 million, a 10.7% increase compared to $79.4 million, reflecting increased mortgage banking operations income, record wealth management revenues and higher levels of dividends on non-marketable equity securities, partially offset by lower insurance commissions and fees. Non-interest expense totaled $237.1 million, increasing $17.2 million, or 7.8%. On an operating basis (non-GAAP), non-interest expense totaled $234.1 million, an increase of $16.2 million, or 7.5%, compared to the first three months of 2023. Salaries and benefits increased $8.9 million, or 7.4%, due largely to normal annual

57

merit increases and higher production-related commissions from strong non-interest income activity. Additionally, net occupancy and equipment expense increased $3.9 million, or 10.0%, largely from technology-related investments.

Financial highlights are summarized below:

TABLE 2

	Three Months Ended March 31,				$		%
(in thousands, except per share data)	2024		2023		Change		Change
Net interest income	$	319,008	$	336,654	$	(17,646)	(5.2)	%
Provision for credit losses	13,890		14,061		(171)		(1.2)
Non-interest income	87,862		79,389		8,473		10.7
Non-interest expense	237,096		219,917		17,179		7.8
Income taxes	33,553		35,560		(2,007)		(5.6)
Net income	122,331		146,505		(24,174)		(16.5)
Less: Preferred stock dividends	6,005		2,010		3,995		198.8
Net income available to common stockholders	$	116,326	$	144,495	$	(28,169)	(19.5)	%
Earnings per common share – Basic	$	0.32	$	0.40	$	(0.08)	(20.0)	%
Earnings per common share – Diluted	0.32		0.40		(0.08)		(20.0)
Cash dividends per common share	0.12		0.12		—		—

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

TABLE 3

	Three Months Ended March 31,
	2024			2023
Return on average equity	8.15		%	10.37		%
Return on average tangible common equity (1)	14.00			19.68
Return on average assets	1.08			1.37
Return on average tangible assets (1)	1.17			1.49
Book value per common share	$	16.71		$	15.76
Tangible book value per common share (1)	9.64			8.66
Equity to assets	13.09		%	13.11		%
Average equity to average assets	13.22			13.20
Common equity to assets	13.09			12.87
Tangible common equity to tangible assets (1)	7.99			7.50
Common equity tier 1 capital ratio	10.21			10.04
Dividend payout ratio	37.76			30.30

(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 March 31,
	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	$	872,353	$	9,178	4.23	%	$	817,910	$	6,653	3.30	%
Taxable investment securities (1)	6,121,568		45,825		2.99		6,214,311		35,476		2.28
Tax-exempt investment securities (1)(2)	1,041,224		8,971		3.45		1,055,189		9,159		3.47
Loans held for sale	237,106		4,287		7.25		116,164		1,594		5.51
Loans and leases (2) (3)	32,380,951		478,146		5.93		30,410,376		393,895		5.24
Total interest-earning assets (2)	40,653,202		546,407		5.40		38,613,950		446,777		4.68
Cash and due from banks	410,680						442,712
Allowance for credit losses	(409,865)						(405,705)
Premises and equipment	469,516						442,441
Other assets	4,554,056						4,328,511
Total assets	$	45,677,589					$	43,421,909
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing demand	$	14,554,457	94,742		2.62		$	14,596,006	52,278		1.45
Savings	3,411,870		9,999		1.18		4,023,568		7,853		0.79
Certificates and other time	6,299,280		65,657		4.19		4,182,700		23,961		2.32
Total interest-bearing deposits	24,265,607		170,398		2.82		22,802,274		84,092		1.50
Short-term borrowings	2,400,104		27,701		4.63		1,561,343		9,744		2.53
Long-term borrowings	2,057,817		26,390		5.16		1,082,040		13,013		4.88
Total interest-bearing liabilities	28,723,528		224,489		3.14		25,445,657		106,849		1.70
Non-interest-bearing demand	9,939,350						11,410,506
Total deposits and borrowings	38,662,878				2.33		36,856,163				1.18
Other liabilities	975,138						834,106
Total liabilities	39,638,016						37,690,269
Stockholders’ equity	6,039,573						5,731,640
Total liabilities and stockholders’ equity	$	45,677,589					$	43,421,909
Net interest-earning assets	$	11,929,674					$	13,168,293
Net interest income (FTE) (2)			321,918						339,928
Tax-equivalent adjustment			(2,910)						(3,274)
Net interest income			$	319,008					$	336,654
Net interest spread					2.26	%					2.98	%
Net interest margin (2)					3.18	%					3.56	%

(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 $321.9 million, decreasing $18.0 million, or 5.3%, primarily due to higher interest-bearing deposit costs including continued 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 5.3%, primarily driven by organic loan origination activity. 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. Total average borrowings increased $1.8 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 38 basis points to 3.18%.

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 March 31, 2024, compared to the three months ended March 31, 2023:

TABLE 5

(in thousands)	Volume		Rate		Net
Interest Income (1)
Interest-bearing deposits with banks	$	477	$	2,048	$	2,525
Securities (2)	(667)		10,828		10,161
Loans held for sale	908		1,785		2,693
Loans and leases (2)	27,899		56,352		84,251
Total interest income (2)	28,617		71,013		99,630
Interest Expense (1)
Deposits:
Interest-bearing demand	3,165		39,299		42,464
Savings	264		1,882		2,146
Certificates and other time	15,781		25,915		41,696
Short-term borrowings	9,636		8,321		17,957
Long-term borrowings	12,284		1,093		13,377
Total interest expense	41,130		76,510		117,640
Net change (2)	$	(12,513)	$	(5,497)	$	(18,010)

(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 $546.4 million for the first three months of 2024, increased $99.6 million, or 22.3%, from the same period of 2023, resulting from the interest rate increases by the FOMC and a $2.0 billion increase in average earning assets. The increase in earning assets was primarily driven by a $2.0 billion, or 6.5%, increase in average loans. Growth in total average commercial loans included $755.1 million, or 6.6%, in commercial real estate loans and $225.3 million, or 3.1%, in commercial and industrial loans, driven by a combination of organic loan origination activity led by the Pittsburgh, Charlotte, Cleveland and Raleigh markets. Average consumer loans increased $861.8 million, or 7.8%, with an increase in residential mortgage loans of $1.3 billion, or 24.4%, reflecting adjustable-rate mortgages held in portfolio on the balance sheet and the continued success of the Physicians First mortgage program, which is a program that provides a bundled suite of specialized products to meet the personal and professional needs of physicians, dentists, veterinarians and other healthcare professionals. Indirect installment loans decreased $401.8 million, or 26.1%, reflecting the $332 million indirect auto loan sale that closed in the first quarter of 2024. Additionally, the net increase in securities interest income was a result of replacing maturing securities with higher yielding securities, as the average total securities portfolio yield increased 60 basis points. For the first three months of 2024, the yield on average earning assets (non-GAAP) increased 72 basis points to 5.40%, compared to the first three months of 2023.

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Interest expense of $224.5 million for the first three months of 2024 increased $117.6 million, or 110.1%, from the same period of 2023, primarily due to the higher interest rate environment and an increase in average interest-bearing deposits and borrowings. Average time deposits increased $2.1 billion, or 50.6%, given the continued migration into higher-yielding deposit products. Average short-term borrowings increased $838.8 million, or 53.7%, primarily due to an increase in short-term FHLB borrowings of $682.6 million and average long-term borrowings increased $975.8 million, or 90.2%, primarily due to an increase of $1.2 billion in long-term FHLB borrowings, as we have maintained additional liquidity following the banking industry disruption in early 2023 and in a continued effort to support strong loan growth. The rate paid on interest-bearing liabilities increased 144 basis points to 3.14% for the first three months of 2024, compared to the first three months of 2023, as the cost of interest-bearing deposits increased 132 basis points from 1.50% to 2.82%. These increases were primarily due to increased deposit competition and market trends resulting from the interest rate actions taken by the FOMC and the banking industry market disruptions that occurred in early 2023.

Provision for Credit Losses

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

TABLE 6

	Three Months Ended March 31,						$		%
(dollars in thousands)	2024			2023			Change		Change
Provision for credit losses on loans and leases	$	13,509		$	14,891		$	(1,382)	(9.3)	%
Provision for unfunded loan commitments	387			(925)			1,312		141.8
Total provision for credit losses on loans and leases	13,896			13,966			(70)		(0.5)
Provision for securities	(7)			95			(102)		(107.4)
Total provision for credit losses	$	13,889		$	14,061		$	(172)	(1.2)	%
Net loan charge-offs	$	12,776		$	13,197		$	(421)	(3.2)	%
Net loan charge-offs (annualized) / total average loans and leases	0.16		%	0.18		%

The provision for credit losses was $13.9 million, compared to $14.1 million in the first three months of 2023. The provision for credit losses for the first three months of 2024 was primarily due to loan growth and charge-off activity. The provision for credit losses in the first three 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 389%. The first three months of 2024 reflected net charge-offs of $12.8 million, or 0.16% annualized of total average loans, compared to $13.2 million, or 0.18% annualized, in the first three months of 2023. The ACL was $406.3 million, an increase of $2.9 million, with the ratio of the ACL to total loans and leases decreasing 7 basis points to 1.25%, reflecting net loan growth and charge-off activity.

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Non-Interest Income

The breakdown of non-interest income for the three months ended March 31, 2024 and 2023 is presented in the following table:

TABLE 7

	Three Months Ended March 31,				$		%
(dollars in thousands)	2024		2023		Change		Change
Service charges	$	20,569	$	20,264	$	305	1.5	%
Interchange and card transaction fees	12,700		12,376		324		2.6
Trust services	11,424		10,611		813		7.7
Insurance commissions and fees	6,752		7,787		(1,035)		(13.3)
Securities commissions and fees	8,155		7,382		773		10.5
Capital markets income	6,331		6,793		(462)		(6.8)
Mortgage banking operations	7,914		4,855		3,059		63.0
Dividends on non-marketable equity securities	6,193		4,108		2,085		50.8
Bank owned life insurance	3,343		2,825		518		18.3
Net securities gains (losses)	—		(17)		17		—
Other	4,481		2,405		2,076		86.3
Total non-interest income	$	87,862	$	79,389	$	8,473	10.7	%

Total non-interest income increased by $8.5 million, or 10.7%. The variances in significant individual non-interest income items are explained in the following paragraphs.

Wealth management revenues were at record levels and increased $1.6 million, or 8.8%, as securities commissions and fees and trust income increased 10.5% and 7.7%, respectively, through continued strong contributions across the geographic footprint.

Insurance commissions and fees decreased $1.0 million, or 13.3%, with lower contingent revenues compared to the year-ago quarter, combined with a book of business decline.

Mortgage banking operations income of $7.9 million increased $3.1 million, or 63.0%, driven by improved gain on sale from strong production volumes. During the first three months of 2024, we sold $329.2 million of residential mortgage loans, a 57.1% increase compared to $209.6 million for the same period of 2023.

Dividends on non-marketable equity securities of $6.2 million increased $2.1 million, or 50.8%, reflecting higher FHLB dividends due to additional borrowings.

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Non-Interest Expense

The breakdown of non-interest expense for the three months ended March 31, 2024 and 2023 is presented in the following table:

TABLE 8

	Three Months Ended March 31,				$		%
(dollars in thousands)	2024		2023		Change		Change
Salaries and employee benefits	$	129,126	$	120,247	$	8,879	7.4	%
Net occupancy	19,595		17,370		2,225		12.8
Equipment	23,772		22,072		1,700		7.7
Amortization of intangibles	4,442		5,119		(677)		(13.2)
Outside services	22,880		19,398		3,482		18.0
Marketing	5,431		3,701		1,730		46.7
FDIC insurance	12,662		7,119		5,543		77.9
Bank shares and franchise taxes	4,126		4,172		(46)		(1.1)
Merger-related	—		2,052		(2,052)		—
Other	15,062		18,667		(3,605)		(19.3)
Total non-interest expense	$	237,096	$	219,917	$	17,179	7.8	%

Total non-interest expense of $237.1 million for the first three months of 2024 increased $17.2 million, a 7.8% increase from the same period of 2023. On an operating basis, non-interest expense (non-GAAP) totaled $234.1 million and increased $16.2 million, or 7.5%, when adjusting for significant items of $3.0 million in the first three months of 2024 and $2.1 million in the first three months of 2023. See Table 9 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 $8.9 million, or 7.4%, 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 $43.4 million increased $3.9 million, or 10.0%, primarily from continued technology-related investments.

Outside services increased $3.5 million, or 18.0%, with higher volume-related technology and third-party costs.

Marketing expense of $5.4 million increased $1.7 million, or 46.7%, primarily due to the timing of marketing campaigns.

FDIC insurance increased $5.5 million, or 77.9%, primarily due to a $4.4 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.

Other non-interest expense was $15.1 million and $18.7 million for the first three months of 2024 and 2023, respectively. The first three months of 2024 included a $2.6 million reduction to the previously estimated loss on the indirect auto loan sale.

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

TABLE 9

	Three Months Ended March 31,				$		%
(dollars in thousands)	2024		2023		Change		Change
Total non-interest expense, as reported	$	237,096	$	219,917	$	17,179	7.8	%
Significant items:
Branch consolidations	(1,194)		—		(1,194)
Merger-related	—		(2,052)		2,052
FDIC special assessment	(4,408)		—		(4,408)
Reduction in previously estimated loss on indirect auto loan sale	2,603		—		2,603
Total non-interest expense, excluding significant items (1)	$	234,097	$	217,865	$	16,232	7.5	%

(1) Non-GAAP

Income Taxes

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

TABLE 10

	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Income tax expense	$	33,553		$	35,560
Effective tax rate	21.5		%	19.5		%
Statutory federal tax rate	21.0			21.0

Income tax expense was lower in the first quarter of 2024 due to lower pre-tax earnings. The higher effective tax rate compared to the first quarter of 2023 was driven by lower stock compensation vesting deductions and higher levels of proportional amortization for certain tax credit investments resulting from the adoption of FASB ASU 2023-02.

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FINANCIAL CONDITION

The following table presents our condensed Consolidated Balance Sheets:

TABLE 11

(dollars in millions)	March 31, 2024		December 31, 2023		$ Change		% Change
Assets
Cash and cash equivalents	$	1,487	$	1,576	$	(89)	(5.6)	%
Securities	7,119		7,165		(46)		(0.6)
Loans held for sale	107		488		(381)		(78.1)
Loans and leases, net	32,178		31,917		261		0.8
Goodwill and other intangibles	2,542		2,546		(4)		(0.2)
Other assets	2,463		2,466		(3)		(0.1)
Total Assets	$	45,896	$	46,158	$	(262)	(0.6)	%
Liabilities and Stockholders’ Equity
Deposits	$	34,735	$	34,711	$	24	0.1	%
Borrowings	4,195		4,477		(282)		(6.3)
Other liabilities	960		920		40		4.3
Total Liabilities	39,890		40,108		(218)		(0.5)
Stockholders’ Equity	6,006		6,050		(44)		(0.7)
Total Liabilities and Stockholders’ Equity	$	45,896	$	46,158	$	(262)	(0.6)	%

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 $381 million, or 78.1%, 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 12

	March 31, 2024		December 31, 2023		$ Change		% Change
(in millions)
Commercial real estate	$	12,447	$	12,305	$	142	1.2	%
Commercial and industrial	7,347		7,482		(135)		(1.8)
Commercial leases	615		599		16		2.7
Other	140		110		30		27.3
Total commercial loans and leases	20,549		20,496		53		0.3
Direct installment	2,712		2,741		(29)		(1.1)
Residential mortgages	6,887		6,640		247		3.7
Indirect installment	1,142		1,149		(7)		(0.6)
Consumer lines of credit	1,294		1,297		(3)		(0.2)
Total consumer loans	12,035		11,827		208		1.8
Total loans and leases	$	32,584	$	32,323	$	261	0.8	%

65

The organic quarterly growth in commercial loans and leases was led by the Raleigh, South Carolina and Cleveland markets. For consumer lending, average residential mortgages increased $216.2 million, driven by growth in adjustable-rate mortgages. Our commercial real estate portfolio included $8.8 billion of non-owner occupied loans of which 21.2% represented office space. Our top 25 non-owner occupied commercial real estate loans averaged approximately $31 million per exposure although the office space was primarily made up of mid-sized offices located outside of metropolitan business districts with 39% of the office portfolio averaging less than $5 million per exposure.

Non-Performing Assets

Following is a summary of non-performing assets:

TABLE 13

(in millions)	March 31, 2024		December 31, 2023		$ Change		% Change
Commercial real estate	$	38	$	42	$	(4)	(9.5)	%
Commercial and industrial	39		39		—		—
Commercial leases	3		3		—		—
Other	2		—		2		—
Total commercial loans and leases	82		84		(2)		(2.4)
Direct installment	6		5		1		20.0
Residential mortgages	9		10		(1)		(10.0)
Indirect installment	2		2		—		—
Consumer lines of credit	6		6		—		—
Total consumer loans	23		23		—		—
Total non-performing loans and leases	105		107		(2)		(1.9)
Other real estate owned	3		3		—		—
Total non-performing assets	$	108	$	110	$	(2)	(1.8)	%

Non-performing assets decreased $2.5 million, from $110.0 million at December 31, 2023 to $107.5 million at March 31, 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 March 31, 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 March 31, 2024, the macroeconomic variables that we utilized included, but were not limited to: (i) the purchase only Housing Price Index, which increases 7.4% over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which increases 3.6% over our R&S forecast period, (iii) S&P Volatility, which increases 19.6% in 2024 and decreases 3.5% in 2025 and (iv) personal and business bankruptcies, which increase steadily over the R&S forecast period but average below 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 historical through the cycle period.

66

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

TABLE 14

	Net Loan Charge-Offs				Net Loan Charge-Offs to Average Loans				ACL at
	Three Months Ended March 31,				Three Months Ended March 31,				March 31,
	2024		2023		2024		2023		2024
(dollars in millions)
Commercial real estate	$	6.7	$	5.5	0.08	%	0.07	%	$	161.9
Commercial and industrial	3.1		4.9		0.04		0.07		86.9
Commercial leases	0.2		—		—		—		22.4
Other commercial	0.6		0.5		0.01		0.01		4.1
Direct installment	—		0.1		—		—		30.6
Residential mortgages	—		0.2		—		—		79.3
Indirect installment	2.3		2.0		0.03		0.03		12.5
Consumer lines of credit	(0.1)		—		—		—		8.6
Total net loan charge-offs on loans and leases, net loan charge-offs (annualized)/average loans	$	12.8	$	13.2	0.16	%	0.18	%	$	406.3
Allowance for credit losses/total loans and leases					1.25	%	1.32	%
Allowance for credit losses/non-performing loans					388.61	%	356.09	%

The ACL on loans and leases of $406.3 million at March 31, 2024 increased $0.7 million, or 0.2%, from December 31, 2023. Our ending ACL coverage ratio at both March 31, 2024 and December 31, 2023 was 1.25%. Total provision for credit losses for the three months ended March 31, 2024 was $13.9 million, compared to $14.1 million for the same period in 2023. Net charge-offs were $12.8 million for the three months ended March 31, 2024, compared to $13.2 million for the first three months of 2023. The ACL as a percentage of non-performing loans for the total portfolio was stable at 389% as of March 31, 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 15

(in millions)	March 31, 2024		December 31, 2023		$ Change		% Change
Non-interest-bearing demand	$	9,982	$	10,222	$	(240)	(2.3)	%
Interest-bearing demand	14,679		14,809		(130)		(0.9)
Savings	3,389		3,465		(76)		(2.2)
Certificates and other time deposits	6,685		6,215		470		7.6
Total deposits	$	34,735	$	34,711	$	24	0.1	%

Total deposits increased $24.5 million, or 0.1%, from December 31, 2023, even with the seasonal outflows during the current quarter, 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.

We have an effective shelf registration statement filed with the SEC. Pursuant to this registration statement, 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 $160.9 million, with $139.1 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 March 31, 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 March 31, 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 16

	Actual				Well-Capitalized Requirements (1)				Minimum Capital Requirements plus Capital Conservation Buffer
(dollars in millions)	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of March 31, 2024
F.N.B. Corporation
Total capital	$	4,413	12.03	%	$	3,668	10.00	%	$	3,852	10.50	%
Tier 1 capital	3,744		10.21		2,201		6.00		3,118		8.50
Common equity tier 1	3,744		10.21		n/a		n/a		2,568		7.00
Leverage	3,744		8.62		n/a		n/a		1,738		4.00
Risk-weighted assets	36,683
FNBPA
Total capital	$	4,619	12.66	%	$	3,649	10.00	%	$	3,831	10.50	%
Tier 1 capital	3,808		10.43		2,919		8.00		3,102		8.50
Common equity tier 1	3,728		10.22		2,372		6.50		2,554		7.00
Leverage	3,808		8.80		2,163		5.00		1,731		4.00
Risk-weighted assets	36,489
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). The parent company's cash position at March 31, 2024 was $268.3 million, down $107.1 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. 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 March 31, 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 17

	March 31, 2024		December 31, 2023		Internal Limit
Liquidity coverage ratio	2.6 times		2.0 times		> 1 time
Months of cash on hand	13.9 months		13.0 months		> 12 months
Parent company cash on hand (millions)	$	268.3	$	375.4	n/a

Management has concluded that our cash levels remain appropriate given the current market environment.

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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 was 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. Consistent with industry trends, we have experienced a shift in deposits from non-interest-bearing deposits into certificates of deposit (CDs). The March 2023 banking disruption caused an acceleration of this shift. At March 31, 2024 approximately 78% of our deposits were insured by the FDIC or collateralized, stable with December 31, 2023. Non-interest-bearing demand deposits decreased $240.4 million, compared to December 31, 2023. Interest-bearing demand deposits decreased $129.8 million and savings account balances decreased $75.4 million, while time deposits increased $470.0 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 stable with the prior quarter at 29%. Our cash balances held at the FRB were $1.1 billion at both March 31, 2024 and 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 18

(dollars in millions)	March 31, 2024			December 31, 2023
Unused wholesale credit availability	$	16,176		$	15,899
Unused wholesale credit availability as a % of FNBPA assets	35.4		%	34.6		%
Salable unpledged government and agency securities	$	918		$	657
Salable unpledged government and agency securities as a % of FNBPA assets	2.0		%	1.4		%
Cash and salable unpledged government and agency securities as a % of FNBPA assets	4.4		%	3.8		%

Our bank-level liquidity position was strong throughout the first quarter 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 2.0 times the uninsured deposit and non-collateralized deposit balances as of March 31, 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 March 31, 2024, FNBPA has $2.0 billion of cash and salable unpledged government and agency securities representing 4.4% 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 March 31, 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 19

(dollars in millions)	Within 1 Month			2-3 Months			4-6 Months			7-12 Months			Total 1 Year
Assets
Loans	$	890		$	1,610		$	1,852		$	3,408		$	7,760
Investments	1,230			147			215			456			2,048
	2,120			1,757			2,067			3,864			9,808
Liabilities
Non-maturity deposits	293			585			878			1,756			3,512
Time deposits	965			1,255			1,799			2,038			6,057
Borrowings	1,377			214			219			787			2,597
	2,635			2,054			2,896			4,581			12,166
Period Gap (Assets - Liabilities)	$	(515)		$	(297)		$	(829)		$	(717)		$	(2,358)
Cumulative Gap	$	(515)		$	(812)		$	(1,641)		$	(2,358)
Cumulative Gap to Total Assets	(1.1)		%	(1.8)		%	(3.6)		%	(5.1)		%

The twelve-month cumulative gap to total assets ratio was (5.1)% as of March 31, 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 March 31, 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 20

(dollars in millions)	Within 1 Month			2-3 Months			4-6 Months			7-12 Months			Total 1 Year
Assets
Loans	$	15,146		$	930		$	821		$	1,508		$	18,405
Investments	1,238			153			278			453			2,122
	16,384			1,083			1,099			1,961			20,527
Liabilities
Non-maturity deposits	7,955			—			—			—			7,955
Time deposits	1,066			1,253			1,796			2,032			6,147
Borrowings	1,479			527			108			614			2,728
	10,500			1,780			1,904			2,646			16,830
Off-balance sheet	(1,100)			100			(100)			150			(950)
Period Gap (Assets – Liabilities + Off-balance sheet)	$	4,784		$	(597)		$	(905)		$	(535)		$	2,747
Cumulative Gap	$	4,784		$	4,187		$	3,282		$	2,747
Cumulative Gap to Earning Assets	11.7		%	10.2		%	8.0		%	6.7		%

The twelve-month cumulative repricing gap to total assets was 6.7% and 10.3% as of March 31, 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 March 31, 2024, compared to December 31, 2023, is primarily related to customers moving into shorter-term time deposits.

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 March 31, 2024. The calculated results do not reflect management's potential actions.

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TABLE 21

	March 31, 2024		December 31, 2023		ALCO Limits
Net interest income change over 12 months (Rate Ramps):
+ 300 basis points	5.0	%	5.8	%	n/a
+ 200 basis points	3.4		3.9		(5.0)	%
+ 100 basis points	1.7		2.0		(5.0)
- 100 basis points	(1.7)		(2.0)		(5.0)
- 200 basis points	(3.5)		(4.1)		(5.0)
Economic value of equity (Rate Shocks):
+ 300 basis points	4.6		4.6		(25.0)
+ 200 basis points	3.4		3.2		(15.0)
+ 100 basis points	1.9		1.6		(10.0)
- 100 basis points	(2.6)		(2.5)		(10.0)
- 200 basis points	(6.8)		(8.0)		(15.0)

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 quarter of 2024, management adjusted the IRR position by managing cash balances, 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 and we continue to make use of interest rate swaps to commercial borrowers (commercial swaps) to manage our IRR position as the commercial swaps effectively increase our level of adjustable-rate loans. Total variable and adjustable-rate loans were 62.7% of total net loans and leases as of March 31, 2024 and 62.2% as of December 31, 2023. As of March 31, 2024, the commercial swaps totaled $5.6 billion of notional principal, down from $5.7 billion at December 31, 2023. 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. For additional information regarding interest rate swaps, see Note 10, "Derivative Instruments and Hedging Activities" in the Notes to the 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 3.0% at March 31, 2024 and 3.4% at December 31, 2023. For a +200 basis point Rate Shock, net interest income (12 months) increases by 5.8% at March 31, 2024 and 6.7% at December 31, 2023. The corresponding metrics for a minus 100 basis point Rate Shock are (3.1)% and (3.6)% at March 31, 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.

The FOMC increased the Federal Funds rate 100 basis points in the first seven months of 2023. 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 which benefit from higher rates. Our cash position has also been a significant factor in our asset sensitivity metrics.

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.

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

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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.

The following table presents the credit ratings for FNB and FNBPA as of March 31, 2024:

TABLE 22

	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

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,

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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 generate risk 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 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

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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 23

Operating net income available to common stockholders

	Three Months Ended March 31,
(in thousands)	2024		2023
Net income available to common stockholders	$	116,326	$	144,495
Preferred dividend at redemption	3,995		—
Merger-related expense	—		2,052
Tax benefit of merger-related expense	—		(431)
Branch consolidation costs	1,194		—
Tax benefit of branch consolidation costs	(251)		—
FDIC special assessment	4,408		—
Tax benefit of FDIC special assessment	(926)		—
Loss on indirect auto loan sale	(2,603)		—
Tax expense of loss on indirect auto loan sale	547		—
Operating net income available to common stockholders (non-GAAP)	$	122,690	$	146,116

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.

77

TABLE 24

Operating earnings per diluted common share

	Three Months Ended March 31,
	2024		2023
Net income per diluted common share	$	0.32	$	0.40
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	—		—
Loss on indirect auto loan sale	(0.01)		—
Tax expense of loss on indirect auto loan sale	—		—
Operating earnings per diluted common share (non-GAAP)	$	0.34	$	0.40

TABLE 25

Return on average tangible common equity

	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Net income available to common stockholders (annualized)	$	467,859		$	586,007
Amortization of intangibles, net of tax (annualized)	14,115			16,402
Tangible net income available to common stockholders (annualized) (non-GAAP)	$	481,974		$	602,409
Average total stockholders’ equity	$	6,039,573		$	5,731,640
Less: Average preferred stockholders' equity	(52,854)			(106,882)
Less: Average intangible assets (1)	(2,544,032)			(2,563,569)
Average tangible common equity (non-GAAP)	$	3,442,687		$	3,061,189
Return on average tangible common equity (non-GAAP)	14.00		%	19.68		%

(1) Excludes loan servicing rights.

TABLE 26

Operating return on average tangible common equity

	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Operating net income available to common stockholders (annualized)	$	493,456		$	592,582
Amortization of intangibles, net of tax (annualized)	14,115			16,402
Tangible operating net income available to common stockholders (annualized) (non-GAAP)	$	507,571		$	608,984
Average total stockholders' equity	$	6,039,573		$	5,731,640
Less:  Average preferred stockholders' equity	(52,854)			(106,882)
Less:  Average intangible assets (1)	(2,544,032)			(2,563,569)
Average tangible common equity (non-GAAP)	$	3,442,687		$	3,061,189
Operating return on average tangible common equity (non-GAAP)	14.74		%	19.89		%

(1) Excludes loan servicing rights.

78

TABLE 27

Return on average tangible assets

	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Net income (annualized)	$	492,012		$	594,159
Amortization of intangibles, net of tax (annualized)	14,115			16,402
Tangible net income (annualized) (non-GAAP)	$	506,127		$	610,561
Average total assets	$	45,677,589		$	43,421,909
Less: Average intangible assets (1)	(2,544,032)			(2,563,569)
Average tangible assets (non-GAAP)	$	43,133,557		$	40,858,340
Return on average tangible assets (non-GAAP)	1.17		%	1.49		%

(1) Excludes loan servicing rights.

TABLE 28

Tangible book value per common share

	March 31, 2024		March 31, 2023
(dollars in thousands, except per share data)
Total stockholders’ equity	$	6,005,562	$	5,787,383
Less: Preferred stockholders’ equity	—		(106,882)
Less: Intangible assets (1)	(2,541,911)		(2,561,216)
Tangible common equity (non-GAAP)	$	3,463,651	$	3,119,285
Ending common shares outstanding	359,366,316		360,359,857
Tangible book value per common share (non-GAAP)	$	9.64	$	8.66

(1) Excludes loan servicing rights.

TABLE 29

Tangible common equity to tangible assets

	March 31, 2024			March 31, 2023
(dollars in thousands)
Total stockholders' equity	$	6,005,562		$	5,787,383
Less:  Preferred stockholders' equity	—			(106,882)
Less:  Intangible assets (1)	(2,541,911)			(2,561,216)
Tangible common equity (non-GAAP)	$	3,463,651		$	3,119,285
Total assets	$	45,895,574		$	44,145,664
Less:  Intangible assets (1)	(2,541,911)			(2,561,216)
Tangible assets (non-GAAP)	$	43,353,663		$	41,584,448
Tangible common equity to tangible assets (non-GAAP)	7.99		%	7.50		%

(1) Excludes loan servicing rights.

79

TABLE 30

Operating non-interest expense

	Three Months Ended March 31,
	2024		2023
(dollars in thousands)
Non-interest expense	$	237,096	$	219,917
Branch consolidations	(1,194)		—
Merger-related	—		(2,052)
FDIC special assessment	(4,408)		—
Loss on indirect auto loan sale	2,603		—
Operating non-interest expense (non-GAAP)	$	234,097	$	217,865

Key Performance Indicators

TABLE 31

Efficiency ratio

	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Non-interest expense	$	237,096		$	219,917
Less: Amortization of intangibles	(4,442)			(5,119)
Less: OREO expense	(190)			(557)
Less: Merger-related expense	—			(2,052)
Less: Branch consolidation costs	(1,194)			—
Less: FDIC special assessment	(4,408)			—
Add: Loss on indirect auto loan sale	2,603			—
Adjusted non-interest expense	$	229,465		$	212,189
Net interest income	$	319,008		$	336,654
Taxable equivalent adjustment	2,910			3,274
Non-interest income	87,862			79,389
Less: Net securities (gains) losses	—			17
Adjusted net interest income (FTE) + non-interest income	$	409,780		$	419,334
Efficiency ratio (FTE) (non-GAAP)	56.00		%	50.60		%

80

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 March 31, 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.

81

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

NONE

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

NONE

ITEM 4.    MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5.    OTHER INFORMATION

NONE

ITEM 6.    EXHIBITS

Exhibit Index

Exhibit Number	Description
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).

82

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:	May 8, 2024	/s/ Vincent J. Delie, Jr.
		Vincent J. Delie, Jr.
		Chairman, President and Chief Executive Officer
		(Principal Executive Officer)
Dated:	May 8, 2024	/s/ Vincent J. Calabrese, Jr.
		Vincent J. Calabrese, Jr.
		Chief Financial Officer
		(Principal Financial Officer)
Dated:	May 8, 2024	/s/ James L. Dutey
		James L. Dutey
		Corporate Controller
		(Principal Accounting Officer)

83

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 March 31, 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: May 8, 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 March 31, 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: May 8, 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 March 31, 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: May 8, 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 March 31, 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: May 8, 2024	/s/ Vincent J. Calabrese, Jr.
	Vincent J. Calabrese, Jr. Chief Financial Officer

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	Apr. 30, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 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		359,752,833
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000037808
Current Fiscal Year End Date	--12-31

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions		Mar. 31, 2024	Dec. 31, 2023
Assets
Cash and due from banks		$ 351	$ 447
Interest-bearing deposits with banks		1,136	1,129
Cash and Cash Equivalents		1,487	1,576
Debt securities available for sale (amortized cost of $3,449 and $3,460; allowance for credit losses of $0 and $0)		3,226	3,254
Debt securities held to maturity (fair value of $3,547 and $3,593; allowance for credit losses of $0 and $0)		3,893	3,911
Loans held for sale (includes $93 and $150 measured at fair value)	[1]	107	488
Loans and leases, net of unearned income of $95 and $91 (includes $46 and $45 measured at fair value)	[1]	32,584	32,323
Allowance for credit losses on loans and leases		(406)	(406)
Net Loans and Leases		32,178	31,917
Premises and equipment, net		474	461
Goodwill		2,477	2,477
Core deposit and other intangible assets, net		65	69
Bank owned life insurance		663	660
Other assets		1,326	1,345
Total Assets		45,896	46,158
Liabilities
Non-interest-bearing demand		9,982	10,222
Interest-bearing demand		14,679	14,809
Savings		3,389	3,465
Certificates and other time deposits		6,685	6,215
Total Deposits		34,735	34,711
Short-term borrowings		2,074	2,506
Long-term borrowings		2,121	1,971
Other liabilities		960	920
Total Liabilities		39,890	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 – 374,970,621 and 374,939,537 shares		4	4
Additional paid-in capital		4,694	4,692
Retained earnings		1,740	1,669
Accumulated other comprehensive loss		(250)	(235)
Treasury stock – 15,604,305 and 16,110,120 shares at cost		(182)	(187)
Total Stockholders’ Equity		6,006	6,050
Total Liabilities and Stockholders’ Equity		$ 45,896	$ 46,158

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

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Debt securities available for sale, amortized cost	$ 3,449,000,000	$ 3,460,000,000
Debt securities available for sale, allowance for credit losses	0	0
Debt securities held-to-maturity, fair value	3,547,000,000	3,593,000,000
Debt securities held to maturity, allowance for credit losses	270,000	280,000
Loans held for sale, fair value	93,000,000	150,000,000	[1]
Loans and leases, unearned income	95,000,000	91,000,000
Loans and leases, unearned income fair value	$ 46,000,000	$ 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)	374,970,621	374,939,537
Treasury stock, shares (in shares)	15,604,305	16,110,120

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

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Interest Income
Loans and leases, including fees	$ 481	$ 394
Securities:
Taxable	46	36
Tax-exempt	7	7
Other	9	7
Total Interest Income	543	444
Interest Expense
Deposits	170	84
Short-term borrowings	28	10
Long-term borrowings	26	13
Total Interest Expense	224	107
Net Interest Income	319	337
Provision for credit losses	14	14
Net Interest Income After Provision for Credit Losses	305	323
Non-Interest Income
Service charges	21	20
Interchange and card transaction fees	13	12
Trust services	11	11
Insurance commissions and fees	7	8
Securities commissions and fees	8	7
Capital markets income	6	7
Mortgage banking operations	8	5
Dividends on non-marketable equity securities	6	4
Bank owned life insurance	3	3
Other	5	2
Total Non-Interest Income	88	79
Non-Interest Expense
Salaries and employee benefits	129	120
Net occupancy	20	17
Equipment	24	22
Amortization of intangibles	4	5
Outside services	23	20
Marketing	5	4
FDIC insurance	13	7
Bank shares and franchise taxes	4	4
Merger-related	0	2
Other	15	19
Total Non-Interest Expense	237	220
Income Before Income Taxes	156	182
Income taxes	34	35
Net Income	122	147
Preferred stock dividends	6	2
Net income available to common stockholders	116	145
Net income available to common stockholders	$ 116	$ 145
Earnings per Common Share
Basic (USD per share)	$ 0.32	$ 0.40
Diluted (USD per share)	$ 0.32	$ 0.40

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 122	$ 147
Securities available for sale:
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $(4) and $10	(13)	35
Derivative instruments:
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $(3) and $1	(9)	4
Reclassification adjustment for gains included in net income, net of tax expense of $2 and $1	7	3
Pension and postretirement benefit obligations:
Unrealized gains arising during the period, net of tax expense of $0 and $0	0	0
Other Comprehensive Income (Loss)	(15)	42
Comprehensive Income (Loss)	$ 107	$ 189

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Unrealized gains (losses) arising during the period, tax expense (benefit)	$ (4)	$ 10
Unrealized gains (losses) arising during the period, tax expense (benefit)	(3)	1
Reclassification adjustment for gains included in net income, tax expense	2	1
Unrealized gains arising during the period, tax expense	$ 0	$ 0

XML

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)	189.0					147.0		42.0
Dividends declared:
Preferred stock	(2.0)					(2.0)
Common stock	(44.0)					(44.0)
Issuance of common stock	(6.0)				(13.0)				7.0
Repurchase of common stock	(12.0)								(12.0)
Restricted stock compensation	10.0				10.0
Balance at end of period at Mar. 31, 2023	5,788.0		107.0	4.0	4,693.0	1,471.0		(315.0)	(172.0)
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]
Comprehensive income (loss)	$ 107.0					122.0		(15.0)
Preferred stock	(2.0)					(2.0)
Common stock	(44.0)					(44.0)
Redemption of preferred stock	(111.0)		(107.0)			(4.0)
Issuance of common stock	(3.0)				(8.0)				5.0
Restricted stock compensation	10.0				10.0
Balance at end of period at Mar. 31, 2024	$ 6,006.0		$ 0.0	$ 4.0	$ 4,694.0	$ 1,740.0		$ (250.0)	$ (182.0)

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Preferred stock dividends per share (USD per share)	$ 18.13	$ 18.13
Common stock dividends per share (USD per share)	$ 0.12	$ 0.12

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating Activities
Net income	$ 122	$ 147
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities:
Depreciation, amortization and accretion	14	21
Provision for credit losses	14	14
Deferred tax expense (benefit)	15	2
Loans originated for sale	(313)	(215)
Loans sold	356	221
Net (gain) loss on sale of loans	(3)	3
Net change in:
Interest receivable	(15)	(4)
Interest payable	(5)	5
Bank owned life insurance, excluding purchases	(3)	(2)
Other, net	63	(173)
Net cash flows provided by operating activities	245	19
Investing Activities
Net change in loans and leases, excluding sales and transfers	(261)	(415)
Debt securities available for sale:
Purchases	(460)	0
Maturities/payments	473	116
Debt securities held to maturity:
Purchases	(96)	(75)
Maturities/payments	117	90
Increase in premises and equipment	(29)	(33)
Net proceeds from sales of portfolio loans	332	0
Net cash flows provided by (used in) investing activities	76	(317)
Financing Activities
Demand (non-interest bearing and interest bearing) and savings accounts	(446)	(1,717)
Time deposits	469	1,136
Short-term borrowings	(432)	776
Proceeds from issuance of long-term borrowings	161	512
Repayment of long-term borrowings	(11)	(306)
Redemption of preferred stock	(111)	0
Repurchases of common stock	0	(12)
Cash dividends paid:
Preferred stock	(2)	(2)
Common stock	(44)	(44)
Other, net	6	4
Net cash flows provided by (used in) financing activities	(410)	347
Net Increase (Decrease) in Cash and Cash Equivalents	(89)	49
Cash and cash equivalents at beginning of period	1,576	1,674
Cash and Cash Equivalents at End of Period	$ 1,487	$ 1,723

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NATURE OF OPERATIONS

3 Months Ended

Mar. 31, 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 March 31, 2024, we had 348 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

3 Months Ended

Mar. 31, 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 March 31, 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

3 Months Ended

Mar. 31, 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

3 Months Ended

Mar. 31, 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 March 31, 2024 and December 31, 2023. Accrued interest receivable on AFS debt securities totaled $12.2 million at March 31, 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:
March 31, 2024
U.S. Treasury	$	124	$	—	$	(1)	$	123
U.S. government agencies	72		—		—		72
U.S. government-sponsored entities	276		—		(4)		272
Residential MBS:
Agency MBS	959		1		(66)		894
Agency collateralized mortgage obligations	909		—		(116)		793
Agency commercial MBS	1,038		4		(37)		1,005
States of the U.S. and political subdivisions (municipals)	30		—		(3)		27
Other debt securities	41		—		(1)		40
Total debt securities AFS	$	3,449	$	5	$	(228)	$	3,226

(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 March 31, 2024 and December 31, 2023, respectively. Accrued interest receivable on HTM debt securities totaled $13.2 million and $14.7 million at March 31, 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:
March 31, 2024
U.S. Treasury	$	1	$	—	$	—	$	1
U.S. government agencies	1		—		—		1
U.S. government-sponsored entities	28		—		—		28
Residential MBS:
Agency MBS	1,018		1		(105)		914
Agency collateralized mortgage obligations	797		—		(108)		689
Agency commercial MBS	1,023		2		(51)		974
States of the U.S. and political subdivisions (municipals)	1,009		1		(85)		925
Other debt securities	16		—		(1)		15
Total debt securities HTM	$	3,893	$	4	$	(350)	$	3,547

(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 three months ended March 31, 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 84.7% of these securities backed or sponsored by the U.S. government as of March 31, 2024.

As of March 31, 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	$	14	$	14	$	2	$	2
Due after one year but within five years	464		456		87		84
Due after five years but within ten years	35		34		224		211
Due after ten years	30		30		742		673
	543		534		1,055		970
Residential MBS:
Agency MBS	959		894		1,018		914
Agency collateralized mortgage obligations	909		793		797		689
Agency commercial MBS	1,038		1,005		1,023		974
Total debt securities	$	3,449	$	3,226	$	3,893	$	3,547

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)	March 31, 2024			December 31, 2023
Securities pledged (carrying value):
To secure public deposits, trust deposits and for other purposes as required by law	$	5,846		$	6,190
As collateral for short-term borrowings	270			250
Securities pledged as a percent of total securities	85.9		%	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
March 31, 2024
U.S. Treasury	—	$	—	$	—	2	$	73	$	(1)	2	$	73	$	(1)
U.S. government agencies	2	3		—		13	33		—		15	36		—
U.S. government-sponsored entities	4	99		—		7	123		(4)		11	222		(4)
Residential MBS:
Agency MBS	4	85		—		104	703		(66)		108	788		(66)
Agency collateralized mortgage obligations	—	—		—		69	793		(116)		69	793		(116)
Agency commercial MBS	10	334		(3)		20	366		(34)		30	700		(37)
States of the U.S. and political subdivisions (municipals)	—	—		—		13	27		(3)		13	27		(3)
Other debt securities	1	3		—		6	16		(1)		7	19		(1)
Total	21	$	524	$	(3)	234	$	2,134	$	(225)	255	$	2,658	$	(228)
	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 March 31, 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 March 31, 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 $56.3 million as of March 31, 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 March 31, 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 March 31, 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 March 31, 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

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

LOANS AND LEASES

LOANS AND LEASES

Accrued interest receivable on loans and leases, which totaled $139.2 million at March 31, 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)	March 31, 2024		December 31, 2023
Commercial real estate	$	12,447	$	12,305
Commercial and industrial	7,347		7,482
Commercial leases	615		599
Other	140		110
Total commercial loans and leases	20,549		20,496
Direct installment	2,712		2,741
Residential mortgages	6,887		6,640
Indirect installment	1,142		1,149
Consumer lines of credit	1,294		1,297
Total consumer loans	12,035		11,827
Total loans and leases, net of unearned income	$	32,584	$	32,323

The remaining accretable discount included in the amortized cost of acquired loans was $38.4 million and $42.6 million at March 31, 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 or rents received by our borrowers from their tenant(s) on both a property and global basis are the primary default risk drivers, including rents paid by stand-alone business customers for owner-occupied properties;

•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)	March 31, 2024		December 31, 2023
Commercial real estate:
Percent owner-occupied	29.0	%	29.0	%
Percent non-owner-occupied	71.0		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

March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	278	$	1,534	$	2,150	$	2,222	$	1,396	$	3,670	$	244	$	11,494
Special Mention	—		19		103		100		131		287		17		657
Substandard	4		6		29		46		18		190		3		296
Total commercial real estate	282		1,559		2,282		2,368		1,545		4,147		264		12,447
Commercial real estate current period gross charge-offs	—		0.1		0.1		—		—		6.9		—		7.1
Commercial and Industrial:
Risk Rating:
Pass	282		1,445		1,285		765		507		778		1,754		6,816
Special Mention	—		34		21		67		2		74		33		231
Substandard	—		29		28		66		8		64		105		300
Total commercial and industrial	282		1,508		1,334		898		517		916		1,892		7,347
Commercial and industrial current period gross charge-offs	—		0.3		0.2		0.4		0.6		2.4		—		3.9
Commercial Leases:
Risk Rating:
Pass	73		222		127		76		42		53		—		593
Special Mention	—		—		—		—		1		1		—		2
Substandard	—		7		2		4		6		1		—		20
Total commercial leases	73		229		129		80		49		55		—		615
Commercial leases current period gross charge-offs	—		—		—		—		—		0.2		—		0.2
Other Commercial:
Risk Rating:
Pass	7		53		—		—		—		7		73		140
Total other commercial	7		53		—		—		—		7		73		140
Other commercial current period gross charge-offs	—		—		—		—		—		0.9		—		0.9
Total commercial loans and leases	644		3,349		3,745		3,346		2,111		5,125		2,229		20,549

March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
CONSUMER
Direct Installment:
Current	68		326		691		759		379		474		—		2,697
Past due	—		1		2		1		1		10		—		15
Total direct installment	68		327		693		760		380		484		—		2,712
Direct installment current period gross charge-offs	—		—		—		0.1		—		0.1		—		0.2
Residential Mortgages:
Current	283		1,464		1,666		1,493		783		1,138		1		6,828
Past due	—		7		8		5		3		36		—		59
Total residential mortgages	283		1,471		1,674		1,498		786		1,174		1		6,887
Residential mortgages current period gross charge-offs	—		—		—		—		—		—		—		—
Indirect Installment:
Current	101		293		356		214		86		74		—		1,124
Past due	—		2		7		6		2		1		—		18
Total indirect installment	101		295		363		220		88		75		—		1,142
Indirect installment current period gross charge-offs	—		0.5		1.3		0.9		0.1		0.1		—		2.9
Consumer Lines of Credit:
Current	2		36		59		14		2		117		1,049		1,279
Past due	—		—		—		1		1		12		1		15
Total consumer lines of credit	2		36		59		15		3		129		1,050		1,294
Consumer lines of credit current period gross charge-offs	—		—		0.1		—		—		0.2		—		0.3
Total consumer loans	454		2,129		2,789		2,493		1,257		1,862		1,051		12,035
Total loans and leases	$	1,098	$	5,478	$	6,534	$	5,839	$	3,368	$	6,987	$	3,280	$	32,584
Total charge-offs	$	—	$	0.9	$	1.7	$	1.4	$	0.7	$	10.8	$	—	$	15.5

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
March 31, 2024
Commercial real estate	$	10	$	—	$	38	$	48	$	12,399	$	12,447	$	18
Commercial and industrial	7		—		39		46		7,301		7,347		20
Commercial leases	2		—		3		5		610		615		—
Other	—		1		2		3		137		140		—
Total commercial loans and leases	19		1		82		102		20,447		20,549		38
Direct installment	8		1		6		15		2,697		2,712		—
Residential mortgages	39		11		9		59		6,828		6,887		—
Indirect installment	15		1		2		18		1,124		1,142		—
Consumer lines of credit	6		3		6		15		1,279		1,294		—
Total consumer loans	68		16		23		107		11,928		12,035		—
Total loans and leases	$	87	$	17	$	105	$	209	$	32,375	$	32,584	$	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)	March 31, 2024			December 31, 2023
Non-accrual loans	$	105		$	107
Total non-performing loans and leases	105			107
Other real estate owned	3			3
Total non-performing assets	$	108		$	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	0.38			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 $1.3 million at March 31, 2024 and $1.2 million at December 31, 2023. The recorded investment of residential-secured consumer OREO for which formal foreclosure proceedings are in process at March 31, 2024 and December 31, 2023 totaled $13.1 million and $9.4 million, respectively.

Approximately $63.6 million of commercial loans are collateral dependent at March 31, 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 $0.01 million and $0.02 million at March 31, 2024 and March 31, 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 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 March 31, 2024
Term Extension
Direct installment	$	0.2	0.01	%	The modified loans had an average increase in term of 114 months, extending the maturity date.
Residential mortgages	0.7		0.01		The modified loans had an average increase in term of 46 months, extending the maturity date.
Consumer lines of credit	0.5		0.04		The modified loans had an average increase in term of 235 months, extending the maturity date.
Total	1.4
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	0.6		0.01		Multiple modifications were made with no material financial effect.
Total	1.5
Balloon Payment
Commercial real estate	0.6		—		Multiple modifications were made with no material financial effect.
Total	0.6
Other
Commercial real estate	4.1		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	4.7
Total Outstanding Modified	$	8.3

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Three Months Ended March 31, 2023
Term Extension
Commercial and industrial	$	2.4	0.03	%	The modified loans had an average increase in term of 9 months, extending the maturity date.
Direct installment	0.1		—		The repayment on the loans modified were extended, lowering the monthly repayment.
Residential mortgages	0.1		—		The repayment on the loans modified was extended, lowering the monthly repayment.
Consumer lines of credit	0.2		0.02		The repayment on the loans modified was extended, lowering the monthly repayment.
Total	2.8
Term Extension and Rate Reduction
Direct installment	0.1		—		The term was extended, with a weighted average yield reduction of 134 basis points.
Residential mortgages	0.3		0.01		The term was extended, with a weighted average yield reduction of 113 basis points.
Total	0.4
Other
Commercial real estate	0.6		0.01		Multiple modifications were made with no material financial effect.
Residential mortgages	0.1		—		Multiple modifications were made with no material financial effect.
Total	0.7
Total Outstanding Modified	$	3.9

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 three 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 March 31, 2024 and December 31, 2023, respectively, and pooled reserves for individual loans of $2.5 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 $3.8 million at both March 31, 2024 and December 31, 2023. 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 March 31, 2024
Commercial real estate	$	0.3	$	0.9	$	0.6	$	8.7	$	10.5
Commercial and industrial	21.5		0.3		—		0.6		22.4
Total commercial loans and leases	21.8		1.2		0.6		9.3		32.9
Residential mortgages	0.2		—		—		—		0.2
Total consumer loans	0.2		—		—		—		0.2
Total	$	22.0	$	1.2	$	0.6	$	9.3	$	33.1

(in millions)	Term Extension		Term Extension and Rate Reduction		Other		Total Outstanding Modified
Three Months Ended March 31, 2023
Commercial real estate	$	—	$	—	$	0.6	$	0.6
Commercial and industrial	1.6		—		—		1.6
Total commercial loans and leases	1.6		—		0.6		2.2
Residential mortgages	—		0.3		—		0.3
Consumer lines of credit	0.1		—		—		0.1
Total consumer loans	0.1		0.3		—		0.4
Total	$	1.7	$	0.3	$	0.6	$	2.6

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
March 31, 2024
Commercial real estate	$	14.9	$	—	$	—
Commercial and industrial	20.0		—		—
Total commercial loans and leases	34.9		—		—
Direct installment	2.0		—		0.2
Residential mortgages	3.1		1.1		0.8
Consumer lines of credit	1.3		0.4		—
Total consumer loans	6.4		1.5		1.0
Total	$	41.3	$	1.5	$	1.0
(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
March 31, 2023
Commercial real estate	$	0.6	$	—	$	—
Commercial and industrial	2.4		—		—
Total commercial loans and leases	3.0		—		—
Direct installment	0.2		—		—
Residential mortgages	0.2		—		0.3
Consumer lines of credit	0.2		—		—
Total consumer loans	0.6		—		0.3
Total	$	3.6	$	—	$	0.3

XML

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES

3 Months Ended

Mar. 31, 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 March 31, 2024
Commercial real estate	$	166.6	$	(7.1)	$	0.4	$	(6.7)	$	2.0	$	161.9
Commercial and industrial	87.8		(3.9)		0.8		(3.1)		2.2		86.9
Commercial leases	21.2		(0.2)		—		(0.2)		1.4		22.4
Other	3.7		(0.9)		0.3		(0.6)		1.0		4.1
Total commercial loans and leases	279.3		(12.1)		1.5		(10.6)		6.6		275.3
Direct installment	33.8		(0.2)		0.2		—		(3.2)		30.6
Residential mortgages	70.5		—		—		—		8.8		79.3
Indirect installment	12.8		(2.9)		0.6		(2.3)		2.0		12.5
Consumer lines of credit	9.2		(0.3)		0.4		0.1		(0.7)		8.6
Total consumer loans	126.3		(3.4)		1.2		(2.2)		6.9		131.0
Total allowance for credit losses on loans and leases	405.6		(15.5)		2.7		(12.8)		13.5		406.3
Allowance for unfunded loan commitments	21.5		—		—		—		0.4		21.9
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	427.1	$	(15.5)	$	2.7	$	(12.8)	$	13.9	$	428.2

(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 March 31, 2023
Commercial real estate	$	162.1	$	(6.5)	$	1.0	$	(5.5)	$	2.6	$	159.2
Commercial and industrial	102.1		(5.8)		0.9		(4.9)		4.5		101.7
Commercial leases	13.5		—		—		—		1.3		14.8
Other	4.0		(0.8)		0.3		(0.5)		0.5		4.0
Total commercial loans and leases	281.7		(13.1)		2.2		(10.9)		8.9		279.7
Direct installment	35.9		(0.3)		0.2		(0.1)		0.4		36.2
Residential mortgages	55.5		(0.4)		0.2		(0.2)		5.1		60.4
Indirect installment	17.3		(2.6)		0.6		(2.0)		1.3		16.6
Consumer lines of credit	11.3		(0.3)		0.3		—		(0.8)		10.5
Total consumer loans	120.0		(3.6)		1.3		(2.3)		6.0		123.7
Total allowance for credit losses on loans and leases	401.7		(16.7)		3.5		(13.2)		14.9		403.4
Allowance for unfunded loan commitments	21.4		—		—		—		(0.9)		20.5
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	423.1	$	(16.7)	$	3.5	$	(13.2)	$	14.0	$	423.9

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

TABLE 5.2

	Three Months Ended March 31,
	2024		2023
(in millions)
Balance at beginning of period	$	21.5	$	21.4
Provision for unfunded loan commitments and letters of credit:
Commercial portfolio	0.5		(0.9)
Consumer portfolio	(0.1)		—
Balance at end of period	$	21.9	$	20.5

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 March 31, 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 March 31, 2024, the macroeconomic variables that we utilized included, but were not limited to: (i) the purchase only Housing Price Index, which increases 7.4% over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which increases 3.6% over our R&S forecast period, (iii) S&P Volatility, which increases 19.6% in 2024 and decreases 3.5% in 2025 and (iv) personal and business bankruptcies, which increase steadily over the R&S forecast period but average below 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 historical through the cycle period.

The ACL on loans and leases of $406.3 million at March 31, 2024 increased $0.7 million, or 0.2%, from December 31, 2023. Our ending ACL coverage ratio at March 31, 2024 was 1.25%, compared to 1.25% at December 31, 2023. Total provision for credit losses for the three months ended March 31, 2024 was $13.9 million compared to $14.1 million for the same period of 2023. The first quarter of 2024 reflected net charge-offs of $12.8 million, or 0.16% annualized of average total loans, compared to $13.2 million, or 0.18% annualized, in the first quarter of 2023.

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LOAN SERVICING

3 Months Ended

Mar. 31, 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)	March 31, 2024		December 31, 2023
Mortgage loans sold with servicing retained	$	5,924	$	5,729

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

TABLE 6.2

	Three Months Ended March 31,
(in millions)	2024		2023
Mortgage loans sold with servicing retained	$	316	$	198
Pre-tax net gains (losses) resulting from above loan sales (1)	6		—
Mortgage servicing fees (1)	4		3

(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 March 31,
(in millions)	2024		2023
Balance at beginning of period	$	59.5	$	52.8
Additions	3.9		2.5
Payoffs and curtailments	(0.5)		(0.3)
Impairment (charge) / recovery	0.2		—
Amortization / other	(0.6)		(0.7)
Balance at end of period	$	62.5	$	54.3
Fair value, beginning of period	$	71.8	$	68.6
Fair value, end of period	75.2		67.8

There was no valuation allowance for MSRs at March 31, 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)	March 31, 2024			December 31, 2023
Weighted average life (months)	93			92
Constant prepayment rate (annualized)	7.8		%	7.9		%
Discount rate	10.3		%	10.2		%
Effect on fair value due to change in interest rates:
+2.00%	$	6		$	7
+1.00%	5			5
+0.50%	3			3
+0.25%	2			2
-0.25%	(2)			(2)
-0.50%	(4)			(4)
-1.00%	(7)			(8)
-2.00%	(16)			(21)
-3.00%	(34)			(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

3 Months Ended

Mar. 31, 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 March 31, 2024, we had operating lease right-of-use assets and operating lease liabilities of $180.2 million and $212.4 million, respectively. We have finance lease right-of-use assets and finance lease liabilities of $31.1 million and $32.4 million, respectively.

Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of March 31, 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 $39.6 million in right-of-use assets and $44.8 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. During 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 March 31,
(dollars in millions)	2024		2023
Operating lease cost	$	10	$	8
Variable lease cost	1		1
Finance lease cost	1		1
Total lease cost	$	12	$	10

Other information related to leases is as follows:

TABLE 7.2

	Three Months Ended March 31,
(dollars in millions)	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7		$	7
Operating cash flows from finance leases	$	—		$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2		$	—
Finance leases	$	—		$	—
Weighted average remaining lease term (years):
Operating leases	8.68			9.13
Finance leases	19.27			20.61
Weighted average discount rate:
Operating leases	3.0		%	2.6		%
Finance leases	3.2		%	2.8		%

Future cash flows of lease liabilities are as follows:

TABLE 7.3

(in millions)	Operating Leases		Finance Leases		Total Leases
March 31, 2024
2024	$	32	$	2	$	34
2025	28		2		30
2026	25		2		27
2027	22		2		24
2028	20		2		22
Later years	136		34		170
Total lease payments	263		44		307
Less: imputed interest	(51)		(12)		(63)
Present value of lease liabilities	$	212	$	32	$	244

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 March 31, 2024, we had operating lease right-of-use assets and operating lease liabilities of $180.2 million and $212.4 million, respectively. We have finance lease right-of-use assets and finance lease liabilities of $31.1 million and $32.4 million, respectively.

Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of March 31, 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 $39.6 million in right-of-use assets and $44.8 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. During 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 March 31,
(dollars in millions)	2024		2023
Operating lease cost	$	10	$	8
Variable lease cost	1		1
Finance lease cost	1		1
Total lease cost	$	12	$	10

Other information related to leases is as follows:

TABLE 7.2

	Three Months Ended March 31,
(dollars in millions)	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7		$	7
Operating cash flows from finance leases	$	—		$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2		$	—
Finance leases	$	—		$	—
Weighted average remaining lease term (years):
Operating leases	8.68			9.13
Finance leases	19.27			20.61
Weighted average discount rate:
Operating leases	3.0		%	2.6		%
Finance leases	3.2		%	2.8		%

Future cash flows of lease liabilities are as follows:

TABLE 7.3

(in millions)	Operating Leases		Finance Leases		Total Leases
March 31, 2024
2024	$	32	$	2	$	34
2025	28		2		30
2026	25		2		27
2027	22		2		24
2028	20		2		22
Later years	136		34		170
Total lease payments	263		44		307
Less: imputed interest	(51)		(12)		(63)
Present value of lease liabilities	$	212	$	32	$	244

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

3 Months Ended

Mar. 31, 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
March 31, 2024
Trust preferred securities (1)	$	3	$	73	$	—
Tax credit partnerships	174		79		174
Other investments	28		—		28
Total	$	205	$	152	$	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 this 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)	March 31, 2024		December 31, 2023
Tax credit investments included in other assets	$	95	$	81
Unfunded tax credit investments	79		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 March 31,
(in millions)	2024		2023
Provision for income taxes:
Amortization of tax credit investments under proportional method	$	5	$	4
Tax credits from tax credit investments	(5)		(4)
Other tax benefits related to tax credit investments	(1)		(1)
Total impact on provision for income taxes	$	(1)	$	(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

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

BORROWINGS

BORROWINGS

Following is a summary of short-term borrowings:

TABLE 9.1

(in millions)	March 31, 2024		December 31, 2023
Securities sold under repurchase agreements	$	242	$	233
Federal Home Loan Bank advances	1,440		1,900
Federal funds purchased	275		260
Subordinated notes	117		113
Total short-term borrowings	$	2,074	$	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, $540.0 million, or 37.5%, had overnight maturities as of March 31, 2024. We had $450.0 million, or 23.7%, of short-term FHLB advances with overnight maturities as of December 31, 2023. At March 31, 2024, $300.0 million, or 20.8%, 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)	March 31, 2024		December 31, 2023
Federal Home Loan Bank advances	$	1,350	$	1,200
Senior notes	349		349
Subordinated notes	82		82
Junior subordinated debt	73		73
Other subordinated debt	267		267
Total long-term borrowings	$	2,121	$	1,971

Our banking affiliate has available credit with the FHLB of $11.4 billion, of which $2.8 billion was utilized and included in short-term and long-term borrowings and $650.0 million was utilized for a letter of credit for pledging of public funds as of March 31, 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 March 31, 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 a spread of 32.6 basis points for the three months ended March 31, 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 March 31, 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:
7.968% Fixed-To-Floating Rate Subordinated Notes due 2029 (1)	120		118		119		2/14/2029	7.968	%
4.875% Subordinated Notes due 2025	100		98		100		10/2/2025	4.875	%
8.605% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 (2) (4)	25		26		24		12/6/2028	8.605	%
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 March 31, 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	7.24	%	SOFR + 165 bps
Yadkin Valley Statutory Trust I	25		1		23		12/15/2037	6.91	%	SOFR + 132 bps
FNB Financial Services Capital Trust I	25		1		23		9/30/2035	7.02	%	SOFR + 146 bps
Patapsco Statutory Trust I	5		—		5		12/15/2035	7.07	%	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 $8.1 billion as of March 31, 2024.

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

3 Months Ended

Mar. 31, 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. 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

	March 31, 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	$	1,700	$	—	$	2	$	1,800	$	1	$	—
Interest rate swaps – not designated	5,645		99		17		5,660		74		35
Total subject to master netting arrangements	7,345		99		19		7,460		75		35
Not subject to master netting arrangements:
Interest rate swaps – not designated	5,645		17		341		5,660		35		289
Interest rate lock commitments – not designated	242		3		—		239		5		—
Forward delivery commitments – not designated	260		—		—		294		1		4
Credit risk contracts – not designated	709		—		—		629		—		—
Total not subject to master netting arrangements	6,856		20		341		6,822		41		293
Total	$	14,201	$	119	$	360	$	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
	Three Months Ended March 31,					Three Months Ended March 31,
(in millions)	2024		2023			2024		2023
Derivatives in cash flow hedging relationships:
Interest rate contracts	$	(12)	$	5	Interest income (expense)	$	(9)	$	(4)
					Other income	—		—

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

TABLE 10.3

	Three months ended March 31,
	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)	$	481	$	28	$	394	$	10
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	(12)		4		(10)		6

As of March 31, 2024, the maximum length of time over which forecasted interest cash flows are hedged is 2.1 years. In the twelve months that follow March 31, 2024, we expect to reclassify from the amount currently reported in AOCI net derivative losses of $37.8 million ($29.4 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 March 31, 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 three months ended March 31, 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 $583.5 million as of March 31, 2024 have remaining terms ranging from two months 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 March 31, 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 March 31, 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

		Three Months Ended March 31,
(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		(1)
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 March 31, 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
March 31, 2024
Derivative Assets
Interest rate contracts:
Not designated	$	99	$	—	$	99	$	—
Total	$	99	$	—	$	99	$	—

Derivative Liabilities
Interest rate contracts:
Designated	$	2	$	—	$	2	$	—
Not designated	17		—		17		—
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

3 Months Ended

Mar. 31, 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)	March 31, 2024		December 31, 2023
Commitments to extend credit	$	14,242	$	13,656
Standby letters of credit	253		257

At March 31, 2024, funding of 76.4% 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 $21.9 million at March 31, 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 we are routinely 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 threatened claims, litigation, investigations, 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 current knowledge and understanding, and advice of counsel, we do not believe that judgments, sanctions, settlement resolutions, regulatory actions, investigations, 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. Under the settlement, FNBPA has agreed to provide $11.75 million in mortgage loan subsidies on mortgages originated in the Charlotte and Winston-Salem, North Carolina markets beginning in 2024. 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

3 Months Ended

Mar. 31, 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 546,838 and 470,173 restricted stock units during the three months ended March 31, 2024 and 2023, respectively, including 328,104 and 282,106 performance-based restricted stock units during those same periods, respectively. We have shareholder approval under the Plan to issue up to 7,397,956 shares of common stock. As of March 31, 2024, we had 1,816,061 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

	Three Months Ended March 31,
	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	546,838	14.00		470,173	15.06
Net adjustment	320,315	—		288,800	8.04
Vested	(873,153)	11.12		(1,198,383)	8.31
Forfeited/expired/canceled	(12,460)	12.04		(539,233)	7.80
Dividend reinvestment	—	—		37,587	12.48
Unvested units outstanding at end of period	3,484,138	13.04		3,880,126	11.69

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

TABLE 12.2

(in millions)	Three Months Ended March 31,
	2024		2023
Stock-based compensation expense	$	9	$	11
Tax benefit related to stock-based compensation expense	2		2
Fair value of units vested	11		17

As of March 31, 2024, there was $8.7 million of unrecognized compensation cost related to unvested restricted stock units.

The components of the restricted stock units as of March 31, 2024 are as follows:

TABLE 12.3

(dollars in millions)	Service- Based Units		Performance- Based Units		Total
Unvested restricted stock units	2,527,342		956,796		3,484,138
Unrecognized compensation expense	$	8	$	1	$	9
Intrinsic value	$	36	$	13	$	49
Weighted average remaining life (in years)	1.66		1.83		1.71

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INCOME TAXES

3 Months Ended

Mar. 31, 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 March 31,
(dollars in millions)	2024			2023
Current income taxes:
Federal taxes	$	17		$	31
State taxes	2			2
Total current income taxes	19			33
Deferred income taxes:
Federal taxes	13			2
State taxes	2			—
Total deferred income taxes	15			2
Total income taxes	$	34		$	35
Statutory federal tax rate	21.0		%	21.0		%
Effective tax rate	21.5			19.5

Income tax expense was lower for the three months ended March 31, 2024 due to lower pre-tax earnings, partially offset by lower stock compensation vesting deductions and higher levels of proportional amortization for certain tax credit investments resulting from the adoption of FASB ASU 2023-02. The effective tax rate increased in the first quarter of 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 $110.1 million and $120.8 million at March 31, 2024 and December 31, 2023, respectively.

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OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Mar. 31, 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
Three Months Ended March 31, 2024
Balance at beginning of period	$	(160)	$	(33)	$	(42)	$	(235)
Other comprehensive (loss) income before reclassifications	(13)		(9)		—		(22)
Amounts reclassified from AOCI	—		7		—		7
Net current period other comprehensive (loss) income	(13)		(2)		—		(15)
Balance at end of period	$	(173)	$	(35)	$	(42)	$	(250)

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

3 Months Ended

Mar. 31, 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 March 31,
(dollars in millions, except per share data)	2024		2023
Net income	$	122	$	147
Less: Preferred stock dividends	6		2
Net income available to common stockholders	$	116	$	145
Basic weighted average common shares outstanding	361,246,402		360,858,904
Net effect of dilutive stock options and restricted stock	1,372,876		4,071,384
Diluted weighted average common shares outstanding	362,619,278		364,930,288
Earnings per common share:
Basic	$	0.32	$	0.40
Diluted	$	0.32	$	0.40

There were no anti-dilutive shares for the three months ended March 31, 2024 and 2023.

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CASH FLOW INFORMATION

3 Months Ended

Mar. 31, 2024

Supplemental Cash Flow Elements [Abstract]

CASH FLOW INFORMATION

CASH FLOW INFORMATION

Following is a summary of supplemental cash flow information:

TABLE 16.1

	Three Months Ended March 31,
(in millions)	2024		2023
Interest paid on deposits and other borrowings	$	229	$	101
Transfers of loans to other real estate owned	1		—
Loans transferred to portfolio from held for sale	9		15

We did not have any restricted cash as of March 31, 2024 and 2023.

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BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 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 March 31, 2024
Interest income	$	542	$	—	$	—	$	1	$	543
Interest expense	218		—		—		6		224
Net interest income	324		—		—		(5)		319
Provision for credit losses	14		—		—		—		14
Non-interest income	62		20		7		(1)		88
Non-interest expense (1)	211		13		4		5		233
Amortization of intangibles	4		—		—		—		4
Income tax expense (benefit)	34		2		1		(3)		34
Net income (loss)	123		5		2		(8)		122
Total assets	45,639		43		33		181		45,896
Total intangibles	2,507		9		26		—		2,542
At or for the Three Months Ended March 31, 2023
Interest income	$	442	$	—	$	—	$	2	$	444
Interest expense	98		—		—		9		107
Net interest income	344		—		—		(7)		337
Provision for credit losses	14		—		—		—		14
Non-interest income	55		18		7		(1)		79
Non-interest expense (1)	195		13		4		3		215
Amortization of intangibles	5		—		—		—		5
Income tax expense (benefit)	38		1		—		(4)		35
Net income (loss)	147		4		3		(7)		147
Total assets	43,998		38		31		79		44,146
Total intangibles	2,526		9		26		—		2,561

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

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FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 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
March 31, 2024
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury	$	123	$	—	$	—	$	123
U.S. government agencies	—		72		—		72
U.S. government-sponsored entities	—		272		—		272
Residential MBS:
Agency MBS	—		894		—		894
Agency collateralized mortgage obligations	—		793		—		793
Agency commercial MBS	—		1,005		—		1,005
States of the U.S. and political subdivisions (municipals)	—		27		—		27
Other debt securities	—		40		—		40
Total debt securities available for sale	123		3,103		—		3,226
Loans held for sale	—		93		—		93
Loans receivable	—		—		46		46
Derivative financial instruments
Trading	—		115		—		115
Not for trading	—		1		3		4
Total derivative financial instruments	—		116		3		119
Total assets measured at fair value on a recurring basis	$	123	$	3,312	$	49	$	3,484
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	357	$	—	$	357
Not for trading	—		3		—		3
Total derivative financial instruments	—		360		—		360
Total liabilities measured at fair value on a recurring basis	$	—	$	360	$	—	$	360

(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
Three Months Ended March 31, 2024
Balance at beginning of period	$	—	$	—	$	5	$	5
Purchases, issuances, sales and settlements:
Issuances	—		—		3		3
Settlements	—		—		(5)		(5)
Transfers into Level 3	—		46		—		46
Balance at end of period	$	—	$	46	$	3	$	49
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 three months of 2024, $46.5 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 three 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
March 31, 2024
Collateral dependent loans	$	—	$	—	$	29	$	29
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 three months or twelve months ended March 31, 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 three months ended March 31, 2024 had a carrying amount of $29.4 million, which includes an allocated ACL of $2.5 million. The ACL includes a provision applicable to the current period fair value measurements of $2.5 million, which was included in provision for credit losses for the three months ended March 31, 2024.

MSRs measured at fair value on a non-recurring basis had a carrying value of $0.6 million, there was no valuation allowance as of March 31, 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
March 31, 2024
Financial Assets
Cash and cash equivalents	$	1,487	$	1,487	$	1,487	$	—	$	—
Debt securities available for sale	3,226		3,226		123		3,103		—
Debt securities held to maturity	3,893		3,547		—		3,547		—
Net loans and leases, including loans held for sale	32,285		30,591		—		93		30,498
Loan servicing rights	64		77		—		—		77
Derivative assets	119		119		—		116		3
Accrued interest receivable	175		175		175		—		—
Financial Liabilities
Deposits	34,735		34,679		28,050		6,629		—
Short-term borrowings	2,074		2,103		2,103		—		—
Long-term borrowings	2,121		2,158		—		1,386		772
Derivative liabilities	360		360		—		360		—
Accrued interest payable	64		64		64		—		—
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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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 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 March 31, 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)

3 Months Ended

Mar. 31, 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)

3 Months Ended

Mar. 31, 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 March 31, 2024 and December 31, 2023. Accrued interest receivable on AFS debt securities totaled $12.2 million at March 31, 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:
March 31, 2024
U.S. Treasury	$	124	$	—	$	(1)	$	123
U.S. government agencies	72		—		—		72
U.S. government-sponsored entities	276		—		(4)		272
Residential MBS:
Agency MBS	959		1		(66)		894
Agency collateralized mortgage obligations	909		—		(116)		793
Agency commercial MBS	1,038		4		(37)		1,005
States of the U.S. and political subdivisions (municipals)	30		—		(3)		27
Other debt securities	41		—		(1)		40
Total debt securities AFS	$	3,449	$	5	$	(228)	$	3,226

(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 March 31, 2024 and December 31, 2023, respectively. Accrued interest receivable on HTM debt securities totaled $13.2 million and $14.7 million at March 31, 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:
March 31, 2024
U.S. Treasury	$	1	$	—	$	—	$	1
U.S. government agencies	1		—		—		1
U.S. government-sponsored entities	28		—		—		28
Residential MBS:
Agency MBS	1,018		1		(105)		914
Agency collateralized mortgage obligations	797		—		(108)		689
Agency commercial MBS	1,023		2		(51)		974
States of the U.S. and political subdivisions (municipals)	1,009		1		(85)		925
Other debt securities	16		—		(1)		15
Total debt securities HTM	$	3,893	$	4	$	(350)	$	3,547

(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 March 31, 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	$	14	$	14	$	2	$	2
Due after one year but within five years	464		456		87		84
Due after five years but within ten years	35		34		224		211
Due after ten years	30		30		742		673
	543		534		1,055		970
Residential MBS:
Agency MBS	959		894		1,018		914
Agency collateralized mortgage obligations	909		793		797		689
Agency commercial MBS	1,038		1,005		1,023		974
Total debt securities	$	3,449	$	3,226	$	3,893	$	3,547

Schedule of Securities Pledged as Collateral

Following is information relating to securities pledged:

TABLE 3.4

(dollars in millions)	March 31, 2024			December 31, 2023
Securities pledged (carrying value):
To secure public deposits, trust deposits and for other purposes as required by law	$	5,846		$	6,190
As collateral for short-term borrowings	270			250
Securities pledged as a percent of total securities	85.9		%	89.9		%

Summaries 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
March 31, 2024
U.S. Treasury	—	$	—	$	—	2	$	73	$	(1)	2	$	73	$	(1)
U.S. government agencies	2	3		—		13	33		—		15	36		—
U.S. government-sponsored entities	4	99		—		7	123		(4)		11	222		(4)
Residential MBS:
Agency MBS	4	85		—		104	703		(66)		108	788		(66)
Agency collateralized mortgage obligations	—	—		—		69	793		(116)		69	793		(116)
Agency commercial MBS	10	334		(3)		20	366		(34)		30	700		(37)
States of the U.S. and political subdivisions (municipals)	—	—		—		13	27		(3)		13	27		(3)
Other debt securities	1	3		—		6	16		(1)		7	19		(1)
Total	21	$	524	$	(3)	234	$	2,134	$	(225)	255	$	2,658	$	(228)
	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)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Summary 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)	March 31, 2024		December 31, 2023
Commercial real estate	$	12,447	$	12,305
Commercial and industrial	7,347		7,482
Commercial leases	615		599
Other	140		110
Total commercial loans and leases	20,549		20,496
Direct installment	2,712		2,741
Residential mortgages	6,887		6,640
Indirect installment	1,142		1,149
Consumer lines of credit	1,294		1,297
Total consumer loans	12,035		11,827
Total loans and leases, net of unearned income	$	32,584	$	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)	March 31, 2024		December 31, 2023
Commercial real estate:
Percent owner-occupied	29.0	%	29.0	%
Percent non-owner-occupied	71.0		71.0

Summary 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

March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	278	$	1,534	$	2,150	$	2,222	$	1,396	$	3,670	$	244	$	11,494
Special Mention	—		19		103		100		131		287		17		657
Substandard	4		6		29		46		18		190		3		296
Total commercial real estate	282		1,559		2,282		2,368		1,545		4,147		264		12,447
Commercial real estate current period gross charge-offs	—		0.1		0.1		—		—		6.9		—		7.1
Commercial and Industrial:
Risk Rating:
Pass	282		1,445		1,285		765		507		778		1,754		6,816
Special Mention	—		34		21		67		2		74		33		231
Substandard	—		29		28		66		8		64		105		300
Total commercial and industrial	282		1,508		1,334		898		517		916		1,892		7,347
Commercial and industrial current period gross charge-offs	—		0.3		0.2		0.4		0.6		2.4		—		3.9
Commercial Leases:
Risk Rating:
Pass	73		222		127		76		42		53		—		593
Special Mention	—		—		—		—		1		1		—		2
Substandard	—		7		2		4		6		1		—		20
Total commercial leases	73		229		129		80		49		55		—		615
Commercial leases current period gross charge-offs	—		—		—		—		—		0.2		—		0.2
Other Commercial:
Risk Rating:
Pass	7		53		—		—		—		7		73		140
Total other commercial	7		53		—		—		—		7		73		140
Other commercial current period gross charge-offs	—		—		—		—		—		0.9		—		0.9
Total commercial loans and leases	644		3,349		3,745		3,346		2,111		5,125		2,229		20,549

March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
CONSUMER
Direct Installment:
Current	68		326		691		759		379		474		—		2,697
Past due	—		1		2		1		1		10		—		15
Total direct installment	68		327		693		760		380		484		—		2,712
Direct installment current period gross charge-offs	—		—		—		0.1		—		0.1		—		0.2
Residential Mortgages:
Current	283		1,464		1,666		1,493		783		1,138		1		6,828
Past due	—		7		8		5		3		36		—		59
Total residential mortgages	283		1,471		1,674		1,498		786		1,174		1		6,887
Residential mortgages current period gross charge-offs	—		—		—		—		—		—		—		—
Indirect Installment:
Current	101		293		356		214		86		74		—		1,124
Past due	—		2		7		6		2		1		—		18
Total indirect installment	101		295		363		220		88		75		—		1,142
Indirect installment current period gross charge-offs	—		0.5		1.3		0.9		0.1		0.1		—		2.9
Consumer Lines of Credit:
Current	2		36		59		14		2		117		1,049		1,279
Past due	—		—		—		1		1		12		1		15
Total consumer lines of credit	2		36		59		15		3		129		1,050		1,294
Consumer lines of credit current period gross charge-offs	—		—		0.1		—		—		0.2		—		0.3
Total consumer loans	454		2,129		2,789		2,493		1,257		1,862		1,051		12,035
Total loans and leases	$	1,098	$	5,478	$	6,534	$	5,839	$	3,368	$	6,987	$	3,280	$	32,584
Total charge-offs	$	—	$	0.9	$	1.7	$	1.4	$	0.7	$	10.8	$	—	$	15.5

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
March 31, 2024
Commercial real estate	$	10	$	—	$	38	$	48	$	12,399	$	12,447	$	18
Commercial and industrial	7		—		39		46		7,301		7,347		20
Commercial leases	2		—		3		5		610		615		—
Other	—		1		2		3		137		140		—
Total commercial loans and leases	19		1		82		102		20,447		20,549		38
Direct installment	8		1		6		15		2,697		2,712		—
Residential mortgages	39		11		9		59		6,828		6,887		—
Indirect installment	15		1		2		18		1,124		1,142		—
Consumer lines of credit	6		3		6		15		1,279		1,294		—
Total consumer loans	68		16		23		107		11,928		12,035		—
Total loans and leases	$	87	$	17	$	105	$	209	$	32,375	$	32,584	$	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

Summary of Non-Performing Assets

Following is a summary of non-performing assets:

TABLE 4.6

(dollars in millions)	March 31, 2024			December 31, 2023
Non-accrual loans	$	105		$	107
Total non-performing loans and leases	105			107
Other real estate owned	3			3
Total non-performing assets	$	108		$	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	0.38			0.38

Summary of Financing Receivable, Modified

The following table shows the amortized cost basis at the end of the reporting period of the loans modified 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 March 31, 2024
Term Extension
Direct installment	$	0.2	0.01	%	The modified loans had an average increase in term of 114 months, extending the maturity date.
Residential mortgages	0.7		0.01		The modified loans had an average increase in term of 46 months, extending the maturity date.
Consumer lines of credit	0.5		0.04		The modified loans had an average increase in term of 235 months, extending the maturity date.
Total	1.4
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	0.6		0.01		Multiple modifications were made with no material financial effect.
Total	1.5
Balloon Payment
Commercial real estate	0.6		—		Multiple modifications were made with no material financial effect.
Total	0.6
Other
Commercial real estate	4.1		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	4.7
Total Outstanding Modified	$	8.3

(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
Three Months Ended March 31, 2023
Term Extension
Commercial and industrial	$	2.4	0.03	%	The modified loans had an average increase in term of 9 months, extending the maturity date.
Direct installment	0.1		—		The repayment on the loans modified were extended, lowering the monthly repayment.
Residential mortgages	0.1		—		The repayment on the loans modified was extended, lowering the monthly repayment.
Consumer lines of credit	0.2		0.02		The repayment on the loans modified was extended, lowering the monthly repayment.
Total	2.8
Term Extension and Rate Reduction
Direct installment	0.1		—		The term was extended, with a weighted average yield reduction of 134 basis points.
Residential mortgages	0.3		0.01		The term was extended, with a weighted average yield reduction of 113 basis points.
Total	0.4
Other
Commercial real estate	0.6		0.01		Multiple modifications were made with no material financial effect.
Residential mortgages	0.1		—		Multiple modifications were made with no material financial effect.
Total	0.7
Total Outstanding Modified	$	3.9

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
March 31, 2024
Commercial real estate	$	14.9	$	—	$	—
Commercial and industrial	20.0		—		—
Total commercial loans and leases	34.9		—		—
Direct installment	2.0		—		0.2
Residential mortgages	3.1		1.1		0.8
Consumer lines of credit	1.3		0.4		—
Total consumer loans	6.4		1.5		1.0
Total	$	41.3	$	1.5	$	1.0
(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
March 31, 2023
Commercial real estate	$	0.6	$	—	$	—
Commercial and industrial	2.4		—		—
Total commercial loans and leases	3.0		—		—
Direct installment	0.2		—		—
Residential mortgages	0.2		—		0.3
Consumer lines of credit	0.2		—		—
Total consumer loans	0.6		—		0.3
Total	$	3.6	$	—	$	0.3

Summary 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 March 31, 2024
Commercial real estate	$	0.3	$	0.9	$	0.6	$	8.7	$	10.5
Commercial and industrial	21.5		0.3		—		0.6		22.4
Total commercial loans and leases	21.8		1.2		0.6		9.3		32.9
Residential mortgages	0.2		—		—		—		0.2
Total consumer loans	0.2		—		—		—		0.2
Total	$	22.0	$	1.2	$	0.6	$	9.3	$	33.1

(in millions)	Term Extension		Term Extension and Rate Reduction		Other		Total Outstanding Modified
Three Months Ended March 31, 2023
Commercial real estate	$	—	$	—	$	0.6	$	0.6
Commercial and industrial	1.6		—		—		1.6
Total commercial loans and leases	1.6		—		0.6		2.2
Residential mortgages	—		0.3		—		0.3
Consumer lines of credit	0.1		—		—		0.1
Total consumer loans	0.1		0.3		—		0.4
Total	$	1.7	$	0.3	$	0.6	$	2.6

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ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Summary 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 March 31, 2024
Commercial real estate	$	166.6	$	(7.1)	$	0.4	$	(6.7)	$	2.0	$	161.9
Commercial and industrial	87.8		(3.9)		0.8		(3.1)		2.2		86.9
Commercial leases	21.2		(0.2)		—		(0.2)		1.4		22.4
Other	3.7		(0.9)		0.3		(0.6)		1.0		4.1
Total commercial loans and leases	279.3		(12.1)		1.5		(10.6)		6.6		275.3
Direct installment	33.8		(0.2)		0.2		—		(3.2)		30.6
Residential mortgages	70.5		—		—		—		8.8		79.3
Indirect installment	12.8		(2.9)		0.6		(2.3)		2.0		12.5
Consumer lines of credit	9.2		(0.3)		0.4		0.1		(0.7)		8.6
Total consumer loans	126.3		(3.4)		1.2		(2.2)		6.9		131.0
Total allowance for credit losses on loans and leases	405.6		(15.5)		2.7		(12.8)		13.5		406.3
Allowance for unfunded loan commitments	21.5		—		—		—		0.4		21.9
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	427.1	$	(15.5)	$	2.7	$	(12.8)	$	13.9	$	428.2

(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 March 31, 2023
Commercial real estate	$	162.1	$	(6.5)	$	1.0	$	(5.5)	$	2.6	$	159.2
Commercial and industrial	102.1		(5.8)		0.9		(4.9)		4.5		101.7
Commercial leases	13.5		—		—		—		1.3		14.8
Other	4.0		(0.8)		0.3		(0.5)		0.5		4.0
Total commercial loans and leases	281.7		(13.1)		2.2		(10.9)		8.9		279.7
Direct installment	35.9		(0.3)		0.2		(0.1)		0.4		36.2
Residential mortgages	55.5		(0.4)		0.2		(0.2)		5.1		60.4
Indirect installment	17.3		(2.6)		0.6		(2.0)		1.3		16.6
Consumer lines of credit	11.3		(0.3)		0.3		—		(0.8)		10.5
Total consumer loans	120.0		(3.6)		1.3		(2.3)		6.0		123.7
Total allowance for credit losses on loans and leases	401.7		(16.7)		3.5		(13.2)		14.9		403.4
Allowance for unfunded loan commitments	21.4		—		—		—		(0.9)		20.5
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments	$	423.1	$	(16.7)	$	3.5	$	(13.2)	$	14.0	$	423.9

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

TABLE 5.2

	Three Months Ended March 31,
	2024		2023
(in millions)
Balance at beginning of period	$	21.5	$	21.4
Provision for unfunded loan commitments and letters of credit:
Commercial portfolio	0.5		(0.9)
Consumer portfolio	(0.1)		—
Balance at end of period	$	21.9	$	20.5

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LOAN SERVICING (Tables) - Mortgage Servicing Rights

3 Months Ended

Mar. 31, 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)	March 31, 2024		December 31, 2023
Mortgage loans sold with servicing retained	$	5,924	$	5,729

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

TABLE 6.2

	Three Months Ended March 31,
(in millions)	2024		2023
Mortgage loans sold with servicing retained	$	316	$	198
Pre-tax net gains (losses) resulting from above loan sales (1)	6		—
Mortgage servicing fees (1)	4		3

(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 March 31,
(in millions)	2024		2023
Balance at beginning of period	$	59.5	$	52.8
Additions	3.9		2.5
Payoffs and curtailments	(0.5)		(0.3)
Impairment (charge) / recovery	0.2		—
Amortization / other	(0.6)		(0.7)
Balance at end of period	$	62.5	$	54.3
Fair value, beginning of period	$	71.8	$	68.6
Fair value, end of period	75.2		67.8

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)	March 31, 2024			December 31, 2023
Weighted average life (months)	93			92
Constant prepayment rate (annualized)	7.8		%	7.9		%
Discount rate	10.3		%	10.2		%
Effect on fair value due to change in interest rates:
+2.00%	$	6		$	7
+1.00%	5			5
+0.50%	3			3
+0.25%	2			2
-0.25%	(2)			(2)
-0.50%	(4)			(4)
-1.00%	(7)			(8)
-2.00%	(16)			(21)
-3.00%	(34)			(42)

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LEASES (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Schedule of Lease, Cost

The components of lease expense were as follows:

TABLE 7.1

	Three Months Ended March 31,
(dollars in millions)	2024		2023
Operating lease cost	$	10	$	8
Variable lease cost	1		1
Finance lease cost	1		1
Total lease cost	$	12	$	10

Schedule of Leases, Other Information

Other information related to leases is as follows:

TABLE 7.2

	Three Months Ended March 31,
(dollars in millions)	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7		$	7
Operating cash flows from finance leases	$	—		$	—
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2		$	—
Finance leases	$	—		$	—
Weighted average remaining lease term (years):
Operating leases	8.68			9.13
Finance leases	19.27			20.61
Weighted average discount rate:
Operating leases	3.0		%	2.6		%
Finance leases	3.2		%	2.8		%

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
March 31, 2024
2024	$	32	$	2	$	34
2025	28		2		30
2026	25		2		27
2027	22		2		24
2028	20		2		22
Later years	136		34		170
Total lease payments	263		44		307
Less: imputed interest	(51)		(12)		(63)
Present value of lease liabilities	$	212	$	32	$	244

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
March 31, 2024
2024	$	32	$	2	$	34
2025	28		2		30
2026	25		2		27
2027	22		2		24
2028	20		2		22
Later years	136		34		170
Total lease payments	263		44		307
Less: imputed interest	(51)		(12)		(63)
Present value of lease liabilities	$	212	$	32	$	244

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VARIABLE INTEREST ENTITIES (Tables)

3 Months Ended

Mar. 31, 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
March 31, 2024
Trust preferred securities (1)	$	3	$	73	$	—
Tax credit partnerships	174		79		174
Other investments	28		—		28
Total	$	205	$	152	$	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)	March 31, 2024		December 31, 2023
Tax credit investments included in other assets	$	95	$	81
Unfunded tax credit investments	79		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 March 31,
(in millions)	2024		2023
Provision for income taxes:
Amortization of tax credit investments under proportional method	$	5	$	4
Tax credits from tax credit investments	(5)		(4)
Other tax benefits related to tax credit investments	(1)		(1)
Total impact on provision for income taxes	$	(1)	$	(1)

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BORROWINGS (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Summary of Short-Term Borrowings

Following is a summary of short-term borrowings:

TABLE 9.1

(in millions)	March 31, 2024		December 31, 2023
Securities sold under repurchase agreements	$	242	$	233
Federal Home Loan Bank advances	1,440		1,900
Federal funds purchased	275		260
Subordinated notes	117		113
Total short-term borrowings	$	2,074	$	2,506

Summary of Long-term Borrowings

Following is a summary of long-term borrowings:

TABLE 9.2

(in millions)	March 31, 2024		December 31, 2023
Federal Home Loan Bank advances	$	1,350	$	1,200
Senior notes	349		349
Subordinated notes	82		82
Junior subordinated debt	73		73
Other subordinated debt	267		267
Total long-term borrowings	$	2,121	$	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 March 31, 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:
7.968% Fixed-To-Floating Rate Subordinated Notes due 2029 (1)	120		118		119		2/14/2029	7.968	%
4.875% Subordinated Notes due 2025	100		98		100		10/2/2025	4.875	%
8.605% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 (2) (4)	25		26		24		12/6/2028	8.605	%
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 March 31, 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	7.24	%	SOFR + 165 bps
Yadkin Valley Statutory Trust I	25		1		23		12/15/2037	6.91	%	SOFR + 132 bps
FNB Financial Services Capital Trust I	25		1		23		9/30/2035	7.02	%	SOFR + 146 bps
Patapsco Statutory Trust I	5		—		5		12/15/2035	7.07	%	SOFR + 148 bps
Total	$	77	$	3	$	73

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 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

	March 31, 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	$	1,700	$	—	$	2	$	1,800	$	1	$	—
Interest rate swaps – not designated	5,645		99		17		5,660		74		35
Total subject to master netting arrangements	7,345		99		19		7,460		75		35
Not subject to master netting arrangements:
Interest rate swaps – not designated	5,645		17		341		5,660		35		289
Interest rate lock commitments – not designated	242		3		—		239		5		—
Forward delivery commitments – not designated	260		—		—		294		1		4
Credit risk contracts – not designated	709		—		—		629		—		—
Total not subject to master netting arrangements	6,856		20		341		6,822		41		293
Total	$	14,201	$	119	$	360	$	14,282	$	116	$	328

Summary 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
	Three Months Ended March 31,					Three Months Ended March 31,
(in millions)	2024		2023			2024		2023
Derivatives in cash flow hedging relationships:
Interest rate contracts	$	(12)	$	5	Interest income (expense)	$	(9)	$	(4)
					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

	Three months ended March 31,
	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)	$	481	$	28	$	394	$	10
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	(12)		4		(10)		6

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

		Three Months Ended March 31,
(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		(1)
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
March 31, 2024
Derivative Assets
Interest rate contracts:
Not designated	$	99	$	—	$	99	$	—
Total	$	99	$	—	$	99	$	—

Derivative Liabilities
Interest rate contracts:
Designated	$	2	$	—	$	2	$	—
Not designated	17		—		17		—
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)

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Summary of Off-Balance Sheet Credit Risk Information

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

TABLE 11.1

(in millions)	March 31, 2024		December 31, 2023
Commitments to extend credit	$	14,242	$	13,656
Standby letters of credit	253		257

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STOCK INCENTIVE PLANS (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Summary 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

	Three Months Ended March 31,
	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	546,838	14.00		470,173	15.06
Net adjustment	320,315	—		288,800	8.04
Vested	(873,153)	11.12		(1,198,383)	8.31
Forfeited/expired/canceled	(12,460)	12.04		(539,233)	7.80
Dividend reinvestment	—	—		37,587	12.48
Unvested units outstanding at end of period	3,484,138	13.04		3,880,126	11.69

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)	Three Months Ended March 31,
	2024		2023
Stock-based compensation expense	$	9	$	11
Tax benefit related to stock-based compensation expense	2		2
Fair value of units vested	11		17

Schedule of Components of Restricted Stock Units

The components of the restricted stock units as of March 31, 2024 are as follows:

TABLE 12.3

(dollars in millions)	Service- Based Units		Performance- Based Units		Total
Unvested restricted stock units	2,527,342		956,796		3,484,138
Unrecognized compensation expense	$	8	$	1	$	9
Intrinsic value	$	36	$	13	$	49
Weighted average remaining life (in years)	1.66		1.83		1.71

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INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 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 March 31,
(dollars in millions)	2024			2023
Current income taxes:
Federal taxes	$	17		$	31
State taxes	2			2
Total current income taxes	19			33
Deferred income taxes:
Federal taxes	13			2
State taxes	2			—
Total deferred income taxes	15			2
Total income taxes	$	34		$	35
Statutory federal tax rate	21.0		%	21.0		%
Effective tax rate	21.5			19.5

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OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

3 Months Ended

Mar. 31, 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
Three Months Ended March 31, 2024
Balance at beginning of period	$	(160)	$	(33)	$	(42)	$	(235)
Other comprehensive (loss) income before reclassifications	(13)		(9)		—		(22)
Amounts reclassified from AOCI	—		7		—		7
Net current period other comprehensive (loss) income	(13)		(2)		—		(15)
Balance at end of period	$	(173)	$	(35)	$	(42)	$	(250)

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EARNINGS PER COMMON SHARE (Tables)

3 Months Ended

Mar. 31, 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 March 31,
(dollars in millions, except per share data)	2024		2023
Net income	$	122	$	147
Less: Preferred stock dividends	6		2
Net income available to common stockholders	$	116	$	145
Basic weighted average common shares outstanding	361,246,402		360,858,904
Net effect of dilutive stock options and restricted stock	1,372,876		4,071,384
Diluted weighted average common shares outstanding	362,619,278		364,930,288
Earnings per common share:
Basic	$	0.32	$	0.40
Diluted	$	0.32	$	0.40

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CASH FLOW INFORMATION (Tables)

3 Months Ended

Mar. 31, 2024

Supplemental Cash Flow Elements [Abstract]

Summary of Supplemental Cash Flow Information

Following is a summary of supplemental cash flow information:

TABLE 16.1

	Three Months Ended March 31,
(in millions)	2024		2023
Interest paid on deposits and other borrowings	$	229	$	101
Transfers of loans to other real estate owned	1		—
Loans transferred to portfolio from held for sale	9		15

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BUSINESS SEGMENTS (Tables)

3 Months Ended

Mar. 31, 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 March 31, 2024
Interest income	$	542	$	—	$	—	$	1	$	543
Interest expense	218		—		—		6		224
Net interest income	324		—		—		(5)		319
Provision for credit losses	14		—		—		—		14
Non-interest income	62		20		7		(1)		88
Non-interest expense (1)	211		13		4		5		233
Amortization of intangibles	4		—		—		—		4
Income tax expense (benefit)	34		2		1		(3)		34
Net income (loss)	123		5		2		(8)		122
Total assets	45,639		43		33		181		45,896
Total intangibles	2,507		9		26		—		2,542
At or for the Three Months Ended March 31, 2023
Interest income	$	442	$	—	$	—	$	2	$	444
Interest expense	98		—		—		9		107
Net interest income	344		—		—		(7)		337
Provision for credit losses	14		—		—		—		14
Non-interest income	55		18		7		(1)		79
Non-interest expense (1)	195		13		4		3		215
Amortization of intangibles	5		—		—		—		5
Income tax expense (benefit)	38		1		—		(4)		35
Net income (loss)	147		4		3		(7)		147
Total assets	43,998		38		31		79		44,146
Total intangibles	2,526		9		26		—		2,561

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

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 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
March 31, 2024
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury	$	123	$	—	$	—	$	123
U.S. government agencies	—		72		—		72
U.S. government-sponsored entities	—		272		—		272
Residential MBS:
Agency MBS	—		894		—		894
Agency collateralized mortgage obligations	—		793		—		793
Agency commercial MBS	—		1,005		—		1,005
States of the U.S. and political subdivisions (municipals)	—		27		—		27
Other debt securities	—		40		—		40
Total debt securities available for sale	123		3,103		—		3,226
Loans held for sale	—		93		—		93
Loans receivable	—		—		46		46
Derivative financial instruments
Trading	—		115		—		115
Not for trading	—		1		3		4
Total derivative financial instruments	—		116		3		119
Total assets measured at fair value on a recurring basis	$	123	$	3,312	$	49	$	3,484
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	357	$	—	$	357
Not for trading	—		3		—		3
Total derivative financial instruments	—		360		—		360
Total liabilities measured at fair value on a recurring basis	$	—	$	360	$	—	$	360

(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
Three Months Ended March 31, 2024
Balance at beginning of period	$	—	$	—	$	5	$	5
Purchases, issuances, sales and settlements:
Issuances	—		—		3		3
Settlements	—		—		(5)		(5)
Transfers into Level 3	—		46		—		46
Balance at end of period	$	—	$	46	$	3	$	49
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
March 31, 2024
Collateral dependent loans	$	—	$	—	$	29	$	29
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
March 31, 2024
Financial Assets
Cash and cash equivalents	$	1,487	$	1,487	$	1,487	$	—	$	—
Debt securities available for sale	3,226		3,226		123		3,103		—
Debt securities held to maturity	3,893		3,547		—		3,547		—
Net loans and leases, including loans held for sale	32,285		30,591		—		93		30,498
Loan servicing rights	64		77		—		—		77
Derivative assets	119		119		—		116		3
Accrued interest receivable	175		175		175		—		—
Financial Liabilities
Deposits	34,735		34,679		28,050		6,629		—
Short-term borrowings	2,074		2,103		2,103		—		—
Long-term borrowings	2,121		2,158		—		1,386		772
Derivative liabilities	360		360		—		360		—
Accrued interest payable	64		64		64		—		—
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 - Additional Information (Details)	Mar. 31, 2024 state branch
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of states, company operating financial services | state	7
Number of branches | branch	348

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NEW ACCOUNTING STANDARDS - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Mar. 31, 2024	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	$ 6,006.0	$ 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	$ 1,740.0	$ 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
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 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	12,200,000	9,600,000
Debt securities held to maturity, allowance for credit losses	270,000	280,000
Debt securities, held-to-maturity, accrued interest, after allowance for credit loss	13,200,000	14,700,000
Debt securities, available-for-sale, realized loss (gain)	0	67,400,000	$ 0
Debt securities, available for sale, sold		648,700,000
Municipal bond portfolio, value	$ 1,000,000,000
Percentage of formal credit enhancement insurance of municipalities	61.00%
Corporate bond portfolio, at carrying value	$ 56,300,000
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	84.70%
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	$ 210,000	$ 220,000

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SECURITIES - Schedule of Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 3,449	$ 3,460
Gross Unrealized Gains	5	10
Gross Unrealized Losses	(228)	(216)
Fair  Value	3,226	3,254
U.S. Treasury
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	124	422
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1)	(2)
Fair  Value	123	420
U.S. government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	72	78
Gross Unrealized Gains	0	1
Gross Unrealized Losses	0	0
Fair  Value	72	79
U.S. government-sponsored entities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	276	227
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(4)	(4)
Fair  Value	272	223
Agency MBS
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	959	814
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(66)	(62)
Fair  Value	894	752
Agency collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	909	946
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(116)	(114)
Fair  Value	793	832
Agency commercial MBS
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,038	905
Gross Unrealized Gains	4	9
Gross Unrealized Losses	(37)	(30)
Fair  Value	1,005	884
States of the U.S. and political subdivisions (municipals)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	30	30
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(3)	(3)
Fair  Value	27	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	Mar. 31, 2024	Dec. 31, 2023
Investment Securities Held To Maturity [Line Items]
Amortized Cost	$ 3,893	$ 3,911
Gross Unrealized Gains	4	8
Gross Unrealized Losses	(350)	(326)
Fair  Value	3,547	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	1,018	1,057
Gross Unrealized Gains	1	2
Gross Unrealized Losses	(105)	(101)
Fair  Value	914	958
Agency collateralized mortgage obligations
Investment Securities Held To Maturity [Line Items]
Amortized Cost	797	824
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(108)	(104)
Fair  Value	689	720
Agency commercial MBS
Investment Securities Held To Maturity [Line Items]
Amortized Cost	1,023	929
Gross Unrealized Gains	2	4
Gross Unrealized Losses	(51)	(43)
Fair  Value	974	890
States of the U.S. and political subdivisions (municipals)
Investment Securities Held To Maturity [Line Items]
Amortized Cost	1,009	1,017
Gross Unrealized Gains	1	2
Gross Unrealized Losses	(85)	(77)
Fair  Value	925	942
Other debt securities
Investment Securities Held To Maturity [Line Items]
Amortized Cost	16	15
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1)	(1)
Fair  Value	$ 15	$ 14

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SECURITIES - Schedule of Amortized Cost and Fair Value of Securities, by Contractual Maturities (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Schedule Of Securities [Line Items]
Available for sale, due in one year or less, amortized cost	$ 14
Available for sale, due after one year but within five years, amortized cost	464
Available for sale, due after five years but within ten years, amortized cost	35
Available for sale, due after ten years, amortized cost	30
Available for sale, with contractual maturities, amortized cost	543
Amortized Cost	3,449	$ 3,460
Available for sale, due in one year or less, fair value	14
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	34
Available for sale, due after ten years, fair value	30
Available for sale, with contractual maturities, fair value	534
Fair Value	3,226	3,254
Held to maturity, due in one year or less, amortized cost	2
Held to maturity, due after one year but within five years, amortized cost	87
Held to maturity, due after five years but within ten years, amortized cost	224
Held to maturity, due after ten years, amortized cost	742
Held to maturity, with contractual maturities, amortized cost	1,055
Amortized Cost	3,893	3,911
Held to maturity, due in one year or less, fair value	2
Held to maturity, due after one year but within five years, fair value	84
Held to maturity, due after five years but within ten years, fair value	211
Held to maturity, due after ten years, fair value	673
Held to maturity, with contractual maturities, fair value	970
Fair Value	3,547	3,593
Agency MBS
Schedule Of Securities [Line Items]
Available-for-sale, amortized cost	959
Amortized Cost	959	814
Available for sale, fair value	894
Fair Value	894	752
Held to maturity, amortized cost	1,018
Amortized Cost	1,018	1,057
Held to maturity, fair value	914
Fair Value	914	958
Agency collateralized mortgage obligations
Schedule Of Securities [Line Items]
Available-for-sale, amortized cost	909
Amortized Cost	909	946
Available for sale, fair value	793
Fair Value	793	832
Held to maturity, amortized cost	797
Amortized Cost	797	824
Held to maturity, fair value	689
Fair Value	689	720
Agency commercial MBS
Schedule Of Securities [Line Items]
Available-for-sale, amortized cost	1,038
Amortized Cost	1,038	905
Available for sale, fair value	1,005
Fair Value	1,005	884
Held to maturity, amortized cost	1,023
Amortized Cost	1,023	929
Held to maturity, fair value	974
Fair Value	$ 974	$ 890

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SECURITIES - Schedule of Securities Pledged as Collateral (Details) - USD ($) $ in Millions	Mar. 31, 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	$ 5,846	$ 6,190
Securities pledged (carrying value), as collateral for short-term borrowings	$ 270	$ 250
Securities pledged as a percent of total securities	85.90%	89.90%

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SECURITIES - Schedule of Fair Values and Unrealized Losses of Impaired Securities, by Length of Impairment (Details) $ in Millions	Mar. 31, 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	21	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	255	242
Debt securities, available-for-sale, less than 12 months	$ 524	$ 70
Debt securities, available-for-sale, 12 months or longer	2,134	2,235
Debt securities, available-for-sale, unrealized loss position	2,658	2,305
Debt securities, available-for-sale, less than 12 months, accumulated loss	(3)	0
Debt securities, available-for-sale, 12 months or longer, accumulated loss	(225)	(216)
Debt securities, available-for-sale, accumulated loss	$ (228)	$ (216)
U.S. Treasury
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	2	2
Debt securities, available-for-sale, number of positions | security	2	2
Debt securities, available-for-sale, less than 12 months	$ 0	$ 0
Debt securities, available-for-sale, 12 months or longer	73	73
Debt securities, available-for-sale, unrealized loss position	73	73
Debt securities, available-for-sale, less than 12 months, accumulated loss	0	0
Debt securities, available-for-sale, 12 months or longer, accumulated loss	(1)	(2)
Debt securities, available-for-sale, accumulated loss	$ (1)	$ (2)
U.S. government agencies
Schedule Of Securities [Line Items]
Debt securities, available-for-sale, less than 12 months, number of positions | security	2	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	15	14
Debt securities, available-for-sale, less than 12 months	$ 3	$ 4
Debt securities, available-for-sale, 12 months or longer	33	36
Debt securities, available-for-sale, unrealized loss position	36	40
Debt securities, available-for-sale, less than 12 months, accumulated loss	0	0
Debt securities, available-for-sale, 12 months or longer, accumulated loss	0	0
Debt securities, available-for-sale, accumulated loss	$ 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	4	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	11	8
Debt securities, available-for-sale, less than 12 months	$ 99	$ 25
Debt securities, available-for-sale, 12 months or longer	123	123
Debt securities, available-for-sale, unrealized loss position	222	148
Debt securities, available-for-sale, less than 12 months, accumulated loss	0	0
Debt securities, available-for-sale, 12 months or longer, accumulated loss	(4)	(4)
Debt securities, available-for-sale, accumulated loss	$ (4)	$ (4)
Agency MBS
Schedule Of Securities [Line Items]
Debt securities, available-for-sale, less than 12 months, number of positions | security	4	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	108	104
Debt securities, available-for-sale, less than 12 months	$ 85	$ 0
Debt securities, available-for-sale, 12 months or longer	703	750
Debt securities, available-for-sale, unrealized loss position	788	750
Debt securities, available-for-sale, less than 12 months, accumulated loss	0	0
Debt securities, available-for-sale, 12 months or longer, accumulated loss	(66)	(62)
Debt securities, available-for-sale, accumulated loss	$ (66)	$ (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	$ 0	$ 0
Debt securities, available-for-sale, 12 months or longer	793	832
Debt securities, available-for-sale, unrealized loss position	793	832
Debt securities, available-for-sale, less than 12 months, accumulated loss	0	0
Debt securities, available-for-sale, 12 months or longer, accumulated loss	(116)	(114)
Debt securities, available-for-sale, accumulated loss	$ (116)	$ (114)
Agency commercial MBS
Schedule Of Securities [Line Items]
Debt securities, available-for-sale, less than 12 months, number of positions | security	10	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	30	21
Debt securities, available-for-sale, less than 12 months	$ 334	$ 32
Debt securities, available-for-sale, 12 months or longer	366	377
Debt securities, available-for-sale, unrealized loss position	700	409
Debt securities, available-for-sale, less than 12 months, accumulated loss	(3)	0
Debt securities, available-for-sale, 12 months or longer, accumulated loss	(34)	(30)
Debt securities, available-for-sale, accumulated loss	$ (37)	$ (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	13	13
Debt securities, available-for-sale, number of positions | security	13	13
Debt securities, available-for-sale, less than 12 months	$ 0	$ 0
Debt securities, available-for-sale, 12 months or longer	27	27
Debt securities, available-for-sale, unrealized loss position	27	27
Debt securities, available-for-sale, less than 12 months, accumulated loss	0	0
Debt securities, available-for-sale, 12 months or longer, accumulated loss	(3)	(3)
Debt securities, available-for-sale, accumulated loss	$ (3)	$ (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	6	7
Debt securities, available-for-sale, number of positions | security	7	9
Debt securities, available-for-sale, less than 12 months	$ 3	$ 9
Debt securities, available-for-sale, 12 months or longer	16	17
Debt securities, available-for-sale, unrealized loss position	19	26
Debt securities, available-for-sale, less than 12 months, accumulated loss	0	0
Debt securities, available-for-sale, 12 months or longer, accumulated loss	(1)	(1)
Debt securities, available-for-sale, accumulated loss	$ (1)	$ (1)

XML

LOANS AND LEASES - Additional Information (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($) state	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued interest receivable	$ 139,200,000		$ 128,600,000
Discount remaining	$ 38,400,000		42,600,000
Number of states, company operating financial services | state	7
Loan modification, accrued interest receivable	$ 10,000.00	$ 20,000.00
Loan modification, additional funds	0
Pooled reserves for all other classes of loans	$ 3,800,000		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	2,500,000		2,000,000
Total commercial loans and leases | Commercial loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, collateral dependent	63,600,000
Threshold for loans whose terms have been modified in a trouble debt restructuring, non accrual	1,000,000
Residential Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of OREO through foreclosure	1,300,000		1,200,000
Mortgage loans on real estate, foreclosure	$ 13,100,000		$ 9,400,000

XML

LOANS AND LEASES - Schedule of Net of Unearned Income (Details) - USD ($) $ in Millions		Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount	[1]	$ 32,584	$ 32,323
Total commercial loans and leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		20,549	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		12,447	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		7,347	7,482
Total commercial loans and leases | Commercial leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		615	599
Total commercial loans and leases | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		140	110
Total consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		12,035	11,827
Total consumer loans | Direct installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		2,712	2,741
Total consumer loans | Residential mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		6,887	6,640
Total consumer loans | Indirect installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		1,142	1,149
Total consumer loans | Consumer lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amortized cost loans and leases, carrying amount		$ 1,294	$ 1,297

[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 Commercial Real Estate Loans (Details) - Commercial real estate - Loan Portfolio Diversification Risk	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Percent owner-occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Percent of total loans and leases	29.00%	29.00%
Percent non-owner-occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Percent of total loans and leases	71.00%	71.00%

XML

LOANS AND LEASES - Schedule of Origination Year (Details) - USD ($) $ in Millions		3 Months Ended		12 Months Ended
		Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		$ 1,098.0		$ 5,486.0
Fiscal year before current fiscal year		5,478.0		6,624.0
Two years before current fiscal year		6,534.0		6,015.0
Three years before current fiscal year		5,839.0		3,537.0
Four years before current fiscal year		3,368.0		2,255.0
Prior		6,987.0		5,148.0
Revolving Loans Amortized Cost Basis		3,280.0		3,258.0
Total Loans and Leases	[1]	32,584.0		32,323.0
Current fiscal year, charge-off		0.0		0.8
Fiscal year before current fiscal year, charge-off		0.9		5.2
Two years before current fiscal year, charge-off		1.7		5.2
Three years before current fiscal year, charge-off		1.4		2.4
Four years before current fiscal year, charge-off		0.7		2.7
Prior, charge-off		10.8		64.8
Revolving Loans Amortized Cost Basis, charge-off		0.0		0.0
Total Loans and Leases, charge-off		15.5		81.1
Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		32,375.0		32,097.0
Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		209.0		226.0
Total commercial loans and leases
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		644.0		3,371.0
Fiscal year before current fiscal year		3,349.0		3,762.0
Two years before current fiscal year		3,745.0		3,449.0
Three years before current fiscal year		3,346.0		2,238.0
Four years before current fiscal year		2,111.0		1,726.0
Prior		5,125.0		3,740.0
Revolving Loans Amortized Cost Basis		2,229.0		2,210.0
Total Loans and Leases		20,549.0		20,496.0
Total Loans and Leases, charge-off		12.1	$ 13.1
Total commercial loans and leases | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		20,447.0		20,378.0
Total commercial loans and leases | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		102.0		118.0
Total commercial loans and leases | Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		282.0		1,523.0
Fiscal year before current fiscal year		1,559.0		2,226.0
Two years before current fiscal year		2,282.0		2,401.0
Three years before current fiscal year		2,368.0		1,598.0
Four years before current fiscal year		1,545.0		1,295.0
Prior		4,147.0		3,012.0
Revolving Loans Amortized Cost Basis		264.0		250.0
Total Loans and Leases		12,447.0		12,305.0
Current fiscal year, charge-off		0.0		0.2
Fiscal year before current fiscal year, charge-off		0.1		0.4
Two years before current fiscal year, charge-off		0.1		0.4
Three years before current fiscal year, charge-off		0.0		0.7
Four years before current fiscal year, charge-off		0.0		0.2
Prior, charge-off		6.9		10.5
Revolving Loans Amortized Cost Basis, charge-off		0.0		0.0
Total Loans and Leases, charge-off		7.1	6.5	12.4
Total commercial loans and leases | Commercial real estate | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		12,399.0		12,242.0
Total commercial loans and leases | Commercial real estate | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		48.0		63.0
Total commercial loans and leases | Commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		278.0		1,508.0
Fiscal year before current fiscal year		1,534.0		2,133.0
Two years before current fiscal year		2,150.0		2,298.0
Three years before current fiscal year		2,222.0		1,449.0
Four years before current fiscal year		1,396.0		1,131.0
Prior		3,670.0		2,711.0
Revolving Loans Amortized Cost Basis		244.0		230.0
Total Loans and Leases		11,494.0		11,460.0
Total commercial loans and leases | Commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		0.0		10.0
Fiscal year before current fiscal year		19.0		66.0
Two years before current fiscal year		103.0		76.0
Three years before current fiscal year		100.0		136.0
Four years before current fiscal year		131.0		105.0
Prior		287.0		197.0
Revolving Loans Amortized Cost Basis		17.0		5.0
Total Loans and Leases		657.0		595.0
Total commercial loans and leases | Commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		4.0		5.0
Fiscal year before current fiscal year		6.0		27.0
Two years before current fiscal year		29.0		27.0
Three years before current fiscal year		46.0		13.0
Four years before current fiscal year		18.0		59.0
Prior		190.0		104.0
Revolving Loans Amortized Cost Basis		3.0		15.0
Total Loans and Leases		296.0		250.0
Total commercial loans and leases | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		282.0		1,555.0
Fiscal year before current fiscal year		1,508.0		1,398.0
Two years before current fiscal year		1,334.0		962.0
Three years before current fiscal year		898.0		586.0
Four years before current fiscal year		517.0		406.0
Prior		916.0		678.0
Revolving Loans Amortized Cost Basis		1,892.0		1,897.0
Total Loans and Leases		7,347.0		7,482.0
Current fiscal year, charge-off		0.0		0.1
Fiscal year before current fiscal year, charge-off		0.3		0.3
Two years before current fiscal year, charge-off		0.2		1.0
Three years before current fiscal year, charge-off		0.4		1.0
Four years before current fiscal year, charge-off		0.6		2.2
Prior, charge-off		2.4		46.6
Revolving Loans Amortized Cost Basis, charge-off		0.0		0.0
Total Loans and Leases, charge-off		3.9	5.8	51.2
Total commercial loans and leases | Commercial and industrial | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		7,301.0		7,434.0
Total commercial loans and leases | Commercial and industrial | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		46.0		48.0
Total commercial loans and leases | Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		282.0		1,509.0
Fiscal year before current fiscal year		1,445.0		1,369.0
Two years before current fiscal year		1,285.0		844.0
Three years before current fiscal year		765.0		575.0
Four years before current fiscal year		507.0		370.0
Prior		778.0		585.0
Revolving Loans Amortized Cost Basis		1,754.0		1,773.0
Total Loans and Leases		6,816.0		7,025.0
Total commercial loans and leases | Commercial and industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		0.0		12.0
Fiscal year before current fiscal year		34.0		3.0
Two years before current fiscal year		21.0		56.0
Three years before current fiscal year		67.0		2.0
Four years before current fiscal year		2.0		12.0
Prior		74.0		35.0
Revolving Loans Amortized Cost Basis		33.0		35.0
Total Loans and Leases		231.0		155.0
Total commercial loans and leases | Commercial and industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		0.0		34.0
Fiscal year before current fiscal year		29.0		26.0
Two years before current fiscal year		28.0		62.0
Three years before current fiscal year		66.0		9.0
Four years before current fiscal year		8.0		24.0
Prior		64.0		58.0
Revolving Loans Amortized Cost Basis		105.0		89.0
Total Loans and Leases		300.0		302.0
Total commercial loans and leases | Commercial leases
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		73.0		254.0
Fiscal year before current fiscal year		229.0		138.0
Two years before current fiscal year		129.0		86.0
Three years before current fiscal year		80.0		54.0
Four years before current fiscal year		49.0		25.0
Prior		55.0		42.0
Revolving Loans Amortized Cost Basis		0.0		0.0
Total Loans and Leases		615.0		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		0.2	0.0	0.0
Total commercial loans and leases | Commercial leases | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		610.0		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
Total commercial loans and leases | Commercial leases | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		73.0		247.0
Fiscal year before current fiscal year		222.0		134.0
Two years before current fiscal year		127.0		82.0
Three years before current fiscal year		76.0		47.0
Four years before current fiscal year		42.0		24.0
Prior		53.0		41.0
Revolving Loans Amortized Cost Basis		0.0		0.0
Total Loans and Leases		593.0		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
Fiscal year before current fiscal year		0.0		1.0
Two years before current fiscal year		0.0		0.0
Three years before current fiscal year		0.0		0.0
Four years before current fiscal year		1.0		0.0
Prior		1.0		1.0
Revolving Loans Amortized Cost Basis		0.0		0.0
Total Loans and Leases		2.0		2.0
Total commercial loans and leases | Commercial leases | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		0.0		7.0
Fiscal year before current fiscal year		7.0		3.0
Two years before current fiscal year		2.0		4.0
Three years before current fiscal year		4.0		7.0
Four years before current fiscal year		6.0		1.0
Prior		1.0		0.0
Revolving Loans Amortized Cost Basis		0.0		0.0
Total Loans and Leases		20.0		22.0
Total commercial loans and leases | Other
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		7.0		39.0
Fiscal year before current fiscal year		53.0		0.0
Two years before current fiscal year		0.0		0.0
Three years before current fiscal year		0.0		0.0
Four years before current fiscal year		0.0		0.0
Prior		7.0		8.0
Revolving Loans Amortized Cost Basis		73.0		63.0
Total Loans and Leases		140.0		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		0.9		4.5
Revolving Loans Amortized Cost Basis, charge-off		0.0		0.0
Total Loans and Leases, charge-off		0.9	0.8	4.5
Total commercial loans and leases | Other | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		137.0		108.0
Total commercial loans and leases | Other | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		3.0		2.0
Total commercial loans and leases | Other | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		7.0		39.0
Fiscal year before current fiscal year		53.0		0.0
Two years before current fiscal year		0.0		0.0
Three years before current fiscal year		0.0		0.0
Four years before current fiscal year		0.0		0.0
Prior		7.0		8.0
Revolving Loans Amortized Cost Basis		73.0		63.0
Total Loans and Leases		140.0		110.0
Total consumer loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		454.0		2,115.0
Fiscal year before current fiscal year		2,129.0		2,862.0
Two years before current fiscal year		2,789.0		2,566.0
Three years before current fiscal year		2,493.0		1,299.0
Four years before current fiscal year		1,257.0		529.0
Prior		1,862.0		1,408.0
Revolving Loans Amortized Cost Basis		1,051.0		1,048.0
Total Loans and Leases		12,035.0		11,827.0
Total Loans and Leases, charge-off		3.4	3.6
Total consumer loans | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		11,928.0		11,719.0
Total consumer loans | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Total Loans and Leases		107.0		108.0
Total consumer loans | Direct installment
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		68.0		340.0
Fiscal year before current fiscal year		327.0		713.0
Two years before current fiscal year		693.0		784.0
Three years before current fiscal year		760.0		393.0
Four years before current fiscal year		380.0		137.0
Prior		484.0		374.0
Revolving Loans Amortized Cost Basis		0.0		0.0
Total Loans and Leases		2,712.0		2,741.0
Current fiscal year, charge-off		0.0		0.0
Fiscal year before current fiscal year, charge-off		0.0		0.2
Two years before current fiscal year, charge-off		0.0		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		0.1		0.2
Revolving Loans Amortized Cost Basis, charge-off		0.0		0.0
Total Loans and Leases, charge-off		0.2	0.3	0.6
Total consumer loans | Direct installment | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		68.0		340.0
Fiscal year before current fiscal year		326.0		712.0
Two years before current fiscal year		691.0		784.0
Three years before current fiscal year		759.0		392.0
Four years before current fiscal year		379.0		136.0
Prior		474.0		364.0
Revolving Loans Amortized Cost Basis		0.0		0.0
Total Loans and Leases		2,697.0		2,728.0
Total consumer loans | Direct installment | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		0.0		0.0
Fiscal year before current fiscal year		1.0		1.0
Two years before current fiscal year		2.0		0.0
Three years before current fiscal year		1.0		1.0
Four years before current fiscal year		1.0		1.0
Prior		10.0		10.0
Revolving Loans Amortized Cost Basis		0.0		0.0
Total Loans and Leases		15.0		13.0
Total consumer loans | Residential mortgages
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		283.0		1,424.0
Fiscal year before current fiscal year		1,471.0		1,692.0
Two years before current fiscal year		1,674.0		1,521.0
Three years before current fiscal year		1,498.0		802.0
Four years before current fiscal year		786.0		346.0
Prior		1,174.0		854.0
Revolving Loans Amortized Cost Basis		1.0		1.0
Total Loans and Leases		6,887.0		6,640.0
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		0.0		0.7
Revolving Loans Amortized Cost Basis, charge-off		0.0		0.0
Total Loans and Leases, charge-off		0.0	0.4	0.7
Total consumer loans | Residential mortgages | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		283.0		1,421.0
Fiscal year before current fiscal year		1,464.0		1,686.0
Two years before current fiscal year		1,666.0		1,516.0
Three years before current fiscal year		1,493.0		799.0
Four years before current fiscal year		783.0		343.0
Prior		1,138.0		819.0
Revolving Loans Amortized Cost Basis		1.0		1.0
Total Loans and Leases		6,828.0		6,585.0
Total consumer loans | Residential mortgages | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		0.0		3.0
Fiscal year before current fiscal year		7.0		6.0
Two years before current fiscal year		8.0		5.0
Three years before current fiscal year		5.0		3.0
Four years before current fiscal year		3.0		3.0
Prior		36.0		35.0
Revolving Loans Amortized Cost Basis		0.0		0.0
Total Loans and Leases		59.0		55.0
Total consumer loans | Indirect installment
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		101.0		313.0
Fiscal year before current fiscal year		295.0		395.0
Two years before current fiscal year		363.0		246.0
Three years before current fiscal year		220.0		102.0
Four years before current fiscal year		88.0		43.0
Prior		75.0		50.0
Revolving Loans Amortized Cost Basis		0.0		0.0
Total Loans and Leases		1,142.0		1,149.0
Current fiscal year, charge-off		0.0		0.4
Fiscal year before current fiscal year, charge-off		0.5		4.3
Two years before current fiscal year, charge-off		1.3		3.7
Three years before current fiscal year, charge-off		0.9		0.6
Four years before current fiscal year, charge-off		0.1		0.3
Prior, charge-off		0.1		1.4
Revolving Loans Amortized Cost Basis, charge-off		0.0		0.0
Total Loans and Leases, charge-off		2.9	2.6	10.7
Total consumer loans | Indirect installment | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		101.0		311.0
Fiscal year before current fiscal year		293.0		387.0
Two years before current fiscal year		356.0		238.0
Three years before current fiscal year		214.0		100.0
Four years before current fiscal year		86.0		42.0
Prior		74.0		49.0
Revolving Loans Amortized Cost Basis		0.0		0.0
Total Loans and Leases		1,124.0		1,127.0
Total consumer loans | Indirect installment | Past due
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		0.0		2.0
Fiscal year before current fiscal year		2.0		8.0
Two years before current fiscal year		7.0		8.0
Three years before current fiscal year		6.0		2.0
Four years before current fiscal year		2.0		1.0
Prior		1.0		1.0
Revolving Loans Amortized Cost Basis		0.0		0.0
Total Loans and Leases		18.0		22.0
Total consumer loans | Consumer lines of credit
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		2.0		38.0
Fiscal year before current fiscal year		36.0		62.0
Two years before current fiscal year		59.0		15.0
Three years before current fiscal year		15.0		2.0
Four years before current fiscal year		3.0		3.0
Prior		129.0		130.0
Revolving Loans Amortized Cost Basis		1,050.0		1,047.0
Total Loans and Leases		1,294.0		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		0.2		0.9
Revolving Loans Amortized Cost Basis, charge-off		0.0		0.0
Total Loans and Leases, charge-off		0.3	$ 0.3	1.0
Total consumer loans | Consumer lines of credit | Current
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year		2.0		38.0
Fiscal year before current fiscal year		36.0		61.0
Two years before current fiscal year		59.0		14.0
Three years before current fiscal year		14.0		2.0
Four years before current fiscal year		2.0		3.0
Prior		117.0		117.0
Revolving Loans Amortized Cost Basis		1,049.0		1,044.0
Total Loans and Leases		1,279.0		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
Fiscal year before current fiscal year		0.0		1.0
Two years before current fiscal year		0.0		1.0
Three years before current fiscal year		1.0		0.0
Four years before current fiscal year		1.0		0.0
Prior		12.0		13.0
Revolving Loans Amortized Cost Basis		1.0		3.0
Total Loans and Leases		$ 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		Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Total Loans and Leases	[1]	$ 32,584	$ 32,323
90 Days Past Due and Still Accruing		17	12
Non-accrual loans		105	107
Non-accrual with No ACL		38	25
30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		87	107
Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		209	226
Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		32,375	32,097
Total commercial loans and leases
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		20,549	20,496
90 Days Past Due and Still Accruing		1	1
Non-accrual loans		82	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		19	33
Total commercial loans and leases | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		102	118
Total commercial loans and leases | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		20,447	20,378
Total commercial loans and leases | Commercial real estate
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		12,447	12,305
90 Days Past Due and Still Accruing		0	0
Non-accrual loans		38	42
Non-accrual with No ACL		18	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		48	63
Total commercial loans and leases | Commercial real estate | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		12,399	12,242
Total commercial loans and leases | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		7,347	7,482
90 Days Past Due and Still Accruing		0	0
Non-accrual loans		39	39
Non-accrual with No ACL		20	7
Total commercial loans and leases | Commercial and industrial | 30-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		7	9
Total commercial loans and leases | Commercial and industrial | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		46	48
Total commercial loans and leases | Commercial and industrial | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		7,301	7,434
Total commercial loans and leases | Commercial leases
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		615	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		610	594
Total commercial loans and leases | Other
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		140	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		0	1
Total commercial loans and leases | Other | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		3	2
Total commercial loans and leases | Other | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		137	108
Total consumer loans
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		12,035	11,827
90 Days Past Due and Still Accruing		16	11
Non-accrual loans		23	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		68	74
Total consumer loans | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		107	108
Total consumer loans | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		11,928	11,719
Total consumer loans | Direct installment
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		2,712	2,741
90 Days Past Due and Still Accruing		1	1
Non-accrual loans		6	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		8	7
Total consumer loans | Direct installment | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		15	13
Total consumer loans | Direct installment | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		2,697	2,728
Total consumer loans | Residential mortgages
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		6,887	6,640
90 Days Past Due and Still Accruing		11	7
Non-accrual loans		9	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		59	55
Total consumer loans | Residential mortgages | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		6,828	6,585
Total consumer loans | Indirect installment
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		1,142	1,149
90 Days Past Due and Still Accruing		1	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		15	19
Total consumer loans | Indirect installment | Past due
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		18	22
Total consumer loans | Indirect installment | Current
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		1,124	1,127
Total consumer loans | Consumer lines of credit
Financing Receivable, Past Due [Line Items]
Total Loans and Leases		1,294	1,297
90 Days Past Due and Still Accruing		3	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		6	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		$ 1,279	$ 1,279

[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 Non-Performing Assets (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 105	$ 107
Non-Performing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	105	107
Total non-performing loans and leases	105	107
Other real estate owned	3	3
Total non-performing assets	$ 108	$ 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	0.38%	0.38%
Past due	90 days	90 days

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LOANS AND LEASES - Schedule of Loan Modifications (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 8.3	$ 3.9
Term Extension
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	1.4	2.8
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	1.5	0.4
Balloon Payment
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	0.6
Other
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	4.7	0.7
Direct installment | Term Extension
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 0.2	$ 0.1
% of Total Class of Financing Receivable	0.01%	0.00%
Term increase from modification	114 months
Direct installment | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		$ 0.1
% of Total Class of Financing Receivable		0.00%
Term reduction from modification		1.34%
Residential mortgages | Term Extension
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 0.7	$ 0.1
% of Total Class of Financing Receivable	0.01%	0.00%
Term increase from modification	46 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	$ 0.6	$ 0.3
% of Total Class of Financing Receivable	0.01%	0.01%
Term reduction from modification		1.13%
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	$ 0.2
% of Total Class of Financing Receivable	0.04%	0.02%
Term increase from modification	235 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	$ 4.1	$ 0.6
% of Total Class of Financing Receivable	0.03%	0.01%
Commercial real estate | Other | Maximum
Financing Receivable, Modified [Line Items]
Term for payment deferrals	12 months
Commercial real estate | Other | Minimum
Financing Receivable, Modified [Line Items]
Term for payment deferrals	3 months
Commercial and industrial | Term Extension
Financing Receivable, Modified [Line Items]
Amortized Cost Basis		$ 2.4
% of Total Class of Financing Receivable		0.03%
Term increase from modification		9 months
Commercial and industrial | Other
Financing Receivable, Modified [Line Items]
Amortized Cost Basis	$ 0.6
% of Total Class of Financing Receivable	0.01%

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LOANS AND LEASES - Schedule of Loan Modifications, Subsequently Defaulted (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	$ 33.1	$ 2.6
Term Extension
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	22.0	1.7
Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	1.2	0.3
Balloon Payment
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.6
Other
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	9.3	0.6
Total commercial loans and leases
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	32.9	2.2
Total commercial loans and leases | Term Extension
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	21.8	1.6
Total commercial loans and leases | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	1.2	0.0
Total commercial loans and leases | Balloon Payment
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.6
Total commercial loans and leases | Other
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	9.3	0.6
Total commercial loans and leases | Commercial real estate
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	10.5	0.6
Total commercial loans and leases | Commercial real estate | Term Extension
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.3	0.0
Total commercial loans and leases | Commercial real estate | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.9	0.0
Total commercial loans and leases | Commercial real estate | Balloon Payment
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.6
Total commercial loans and leases | Commercial real estate | Other
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	8.7	0.6
Total commercial loans and leases | Commercial and industrial
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	22.4	1.6
Total commercial loans and leases | Commercial and industrial | Term Extension
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	21.5	1.6
Total commercial loans and leases | Commercial and industrial | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.3	0.0
Total commercial loans and leases | Commercial and industrial | Balloon Payment
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0
Total commercial loans and leases | Commercial and industrial | Other
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.6	0.0
Total consumer loans
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.2	0.4
Total consumer loans | Term Extension
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.2	0.1
Total consumer loans | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0	0.3
Total consumer loans | Balloon Payment
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0
Total consumer loans | Other
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0	0.0
Total consumer loans | Residential mortgages
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.2	0.3
Total consumer loans | Residential mortgages | Term Extension
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.2	0.0
Total consumer loans | Residential mortgages | Term Extension and Rate Reduction
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0	0.3
Total consumer loans | Residential mortgages | Balloon Payment
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	0.0
Total consumer loans | Residential mortgages | Other
Financing Receivable, Modified [Line Items]
Total loans that subsequently defaulted	$ 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	Mar. 31, 2024	Mar. 31, 2023
Current
Financing Receivable, Modified [Line Items]
Total	$ 41.3	$ 3.6
30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	1.5	0.0
90+ Days Past Due
Financing Receivable, Modified [Line Items]
Total	1.0	0.3
Total commercial loans and leases | Current
Financing Receivable, Modified [Line Items]
Total	34.9	3.0
Total commercial loans and leases | 30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.0	0.0
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	14.9	0.6
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	20.0	2.4
Total commercial loans and leases | Commercial and industrial | 30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.0	0.0
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	6.4	0.6
Total consumer loans | 30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	1.5	0.0
Total consumer loans | 90+ Days Past Due
Financing Receivable, Modified [Line Items]
Total	1.0	0.3
Total consumer loans | Direct installment | Current
Financing Receivable, Modified [Line Items]
Total	2.0	0.2
Total consumer loans | Direct installment | 30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.0	0.0
Total consumer loans | Direct installment | 90+ Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.2	0.0
Total consumer loans | Residential mortgages | Current
Financing Receivable, Modified [Line Items]
Total	3.1	0.2
Total consumer loans | Residential mortgages | 30-89 Days Past Due
Financing Receivable, Modified [Line Items]
Total	1.1	0.0
Total consumer loans | Residential mortgages | 90+ Days Past Due
Financing Receivable, Modified [Line Items]
Total	0.8	0.3
Total consumer loans | Consumer lines of credit | Current
Financing Receivable, Modified [Line Items]
Total	1.3	0.2
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		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	$ 406.0
Charge- Offs	(15.5)		$ (81.1)
Provision for Credit Losses	13.9	$ 14.1
Balance at End of Period	406.0		406.0
Unfunded loan commitment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	21.5	21.4	21.4
Charge- Offs	0.0	0.0
Recoveries	0.0	0.0
Net (Charge- Offs) Recoveries	0.0	0.0
Provision for Credit Losses	0.4	(0.9)
Balance at End of Period	21.9	20.5	21.5
Total commercial loans and leases
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	279.3	281.7	281.7
Charge- Offs	(12.1)	(13.1)
Recoveries	1.5	2.2
Net (Charge- Offs) Recoveries	(10.6)	(10.9)
Provision for Credit Losses	6.6	8.9
Balance at End of Period	275.3	279.7	279.3
Total commercial loans and leases | Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	166.6	162.1	162.1
Charge- Offs	(7.1)	(6.5)	(12.4)
Recoveries	0.4	1.0
Net (Charge- Offs) Recoveries	(6.7)	(5.5)
Provision for Credit Losses	2.0	2.6
Balance at End of Period	161.9	159.2	166.6
Total commercial loans and leases | Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	87.8	102.1	102.1
Charge- Offs	(3.9)	(5.8)	(51.2)
Recoveries	0.8	0.9
Net (Charge- Offs) Recoveries	(3.1)	(4.9)
Provision for Credit Losses	2.2	4.5
Balance at End of Period	86.9	101.7	87.8
Total commercial loans and leases | Commercial leases
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	21.2	13.5	13.5
Charge- Offs	(0.2)	0.0	0.0
Recoveries	0.0	0.0
Net (Charge- Offs) Recoveries	(0.2)	0.0
Provision for Credit Losses	1.4	1.3
Balance at End of Period	22.4	14.8	21.2
Total commercial loans and leases | Other
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	3.7	4.0	4.0
Charge- Offs	(0.9)	(0.8)	(4.5)
Recoveries	0.3	0.3
Net (Charge- Offs) Recoveries	(0.6)	(0.5)
Provision for Credit Losses	1.0	0.5
Balance at End of Period	4.1	4.0	3.7
Total commercial loans and leases | Unfunded loan commitment
Allowance for Loan and Lease Losses [Roll Forward]
Provision for Credit Losses	0.5	(0.9)
Total consumer loans
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	126.3	120.0	120.0
Charge- Offs	(3.4)	(3.6)
Recoveries	1.2	1.3
Net (Charge- Offs) Recoveries	(2.2)	(2.3)
Provision for Credit Losses	6.9	6.0
Balance at End of Period	131.0	123.7	126.3
Total consumer loans | Direct installment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	33.8	35.9	35.9
Charge- Offs	(0.2)	(0.3)	(0.6)
Recoveries	0.2	0.2
Net (Charge- Offs) Recoveries	0.0	(0.1)
Provision for Credit Losses	(3.2)	0.4
Balance at End of Period	30.6	36.2	33.8
Total consumer loans | Residential mortgages
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	70.5	55.5	55.5
Charge- Offs	0.0	(0.4)	(0.7)
Recoveries	0.0	0.2
Net (Charge- Offs) Recoveries	0.0	(0.2)
Provision for Credit Losses	8.8	5.1
Balance at End of Period	79.3	60.4	70.5
Total consumer loans | Indirect installment
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	12.8	17.3	17.3
Charge- Offs	(2.9)	(2.6)	(10.7)
Recoveries	0.6	0.6
Net (Charge- Offs) Recoveries	(2.3)	(2.0)
Provision for Credit Losses	2.0	1.3
Balance at End of Period	12.5	16.6	12.8
Total consumer loans | Consumer lines of credit
Allowance for Loan and Lease Losses [Roll Forward]
Balance at Beginning of Period	9.2	11.3	11.3
Charge- Offs	(0.3)	(0.3)	(1.0)
Recoveries	0.4	0.3
Net (Charge- Offs) Recoveries	0.1	0.0
Provision for Credit Losses	(0.7)	(0.8)
Balance at End of Period	8.6	10.5	9.2
Total consumer loans | Unfunded loan commitment
Allowance for Loan and Lease Losses [Roll Forward]
Provision for Credit Losses	(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	405.6	401.7	401.7
Charge- Offs	(15.5)	(16.7)
Recoveries	2.7	3.5
Net (Charge- Offs) Recoveries	(12.8)	(13.2)
Provision for Credit Losses	13.5	14.9
Balance at End of Period	406.3	403.4	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	427.1	423.1	423.1
Charge- Offs	(15.5)	(16.7)
Recoveries	2.7	3.5
Net (Charge- Offs) Recoveries	(12.8)	(13.2)
Provision for Credit Losses	13.9	14.0
Balance at End of Period	$ 428.2	$ 423.9	$ 427.1

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ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Percentage of increase, housing price index	7.40%		5.30%
Percentage of increase, commercial real estate price index	3.60%		0.10%
Percentage of increase (decline), S&P volatility in next fiscal year	19.60%		(4.00%)
Percentage of decline, S&P volatility in next second year	3.50%		2.90%
Allowance for credit loss	$ 406.0		$ 406.0
Financing receivable, provision for credit losses	13.9	$ 14.1
Allowance for credit losses on loans and leases
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit loss	406.3	403.4	$ 405.6	$ 401.7
Financing receivable, allowance for credit loss, period increase (decrease)	$ 0.7
Financing receivable, allowance for credit loss, period decrease, percentage	0.20%
Financing receivable, allowance for credit loss, ratio	1.25%		1.25%
Financing receivable, provision for credit losses	$ 13.5	14.9
Financing receivable, allowance for credit loss, net charge-offs (recovery)	$ 12.8	$ 13.2
Financing receivable, allowance for credit loss, net charge-offs (recovery), percentage	0.16%	0.18%

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LOAN SERVICING - Schedule of Activity in MSR (Details) - Mortgage Servicing Rights - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Servicing Assets at Fair Value [Line Items]
Mortgage loans sold with servicing retained	$ 5,924,000,000		$ 5,729,000,000
Mortgage loans sold with servicing retained	316,000,000	$ 198,000,000
Pre-tax net gains (losses) resulting from above loan sales	6,000,000	0
Mortgage servicing fees	4,000,000	3,000,000
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of period	59,500,000	52,800,000
Additions	3,900,000	2,500,000
Payoffs and curtailments	(500,000)	(300,000)
Impairment (charge) / recovery	200,000	0
Amortization / other	(600,000)	(700,000)
Balance at end of period	62,500,000	54,300,000
Fair value, beginning of period	71,800,000	68,600,000
Fair value, end of period	75,200,000	$ 67,800,000
Valuation allowance for servicing rights	$ 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	3 Months Ended	12 Months Ended
	Mar. 31, 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)	93 months	92 months
Constant prepayment rate (annualized)	7.80%	7.90%
Discount rate	10.30%	10.20%
Sensitivity analysis of fair value, change in interest rates, plus 2.00%	$ 6	$ 7
Sensitivity analysis of fair value, change in interest rates, plus 1.00%	5	5
Sensitivity analysis of fair value, change in interest rates, plus 0.50%	3	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%	(4)	(4)
Sensitivity analysis of fair value, change in interest rates, minus 1.00%	(7)	(8)
Sensitivity analysis of fair value, change in interest rates, minus 2.00%	(16)	(21)
Sensitivity analysis of fair value, change in interest rates, minus 3.00%	$ (34)	$ (42)

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LEASES - Additional Information (Details) $ in Millions	Mar. 31, 2024 USD ($) option
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use asset	$ 180.2
Operating lease, liability	212.4
Finance lease right-of-use asset	31.1
Finance lease liability	32.4
Lessee, operating lease, right-of-use asset, lease not yet commenced	39.6
Lessee, operating lease, lease not yet commenced, liability	$ 44.8
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
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease cost	$ 10	$ 8
Variable lease cost	1	1
Finance lease cost	1	1
Total lease cost	$ 12	$ 10

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LEASES - Schedule of Other Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 7	$ 7
Operating cash flows from finance leases	0	0
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	2	0
Finance leases	$ 0	$ 0
Weighted average remaining lease term (years):
Operating leases	8 years 8 months 4 days	9 years 1 month 17 days
Finance leases	19 years 3 months 7 days	20 years 7 months 9 days
Weighted average discount rate:
Operating leases	3.00%	2.60%
Finance leases	3.20%	2.80%

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LEASES - Schedule of Future Cash Flow of Lease Liabilities (Details) $ in Millions	Mar. 31, 2024 USD ($)
Operating Leases
2024	$ 32.0
2025	28.0
2026	25.0
2027	22.0
2028	20.0
Later years	136.0
Total lease payments	263.0
Less: imputed interest	(51.0)
Present value of lease liabilities	212.4
Finance Leases
2024	2.0
2025	2.0
2026	2.0
2027	2.0
2028	2.0
Later years	34.0
Total lease payments	44.0
Less: imputed interest	(12.0)
Present value of lease liabilities	32.4
Total Leases
2024	34.0
2025	30.0
2026	27.0
2027	24.0
2028	22.0
Later years	170.0
Total lease payments	307.0
Less: imputed interest	(63.0)
Present value of lease liabilities	$ 244.0

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VARIABLE INTEREST ENTITIES - Schedule of Assets and Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Variable Interest Entity [Line Items]
Total Assets	$ 45,896	$ 46,158	$ 44,146
Total Liabilities	39,890	40,108
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Total Assets	205	186
Total Liabilities	152	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	79	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)	3 Months Ended
	Mar. 31, 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 Schedule of Affordable Housing, Historic And New Market Tax Credit Partnerships (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Tax credit investments included in other assets	$ 95	$ 81
Unfunded tax credit investments	$ 79	$ 62

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VARIABLE INTEREST ENTITIES - Schedule of Income Statement Effect (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Provision for income taxes:
Amortization of tax credit investments under proportional method	$ 5	$ 4
Tax credits from tax credit investments	(5)	(4)
Other tax benefits related to tax credit investments	(1)	(1)
Total impact on provision for income taxes	$ (1)	$ (1)

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BORROWINGS - Summary of Short-Term Borrowings (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Securities sold under repurchase agreements	$ 242	$ 233
Federal Home Loan Bank advances	1,440	1,900
Federal funds purchased	275	260
Subordinated notes	117	113
Total short-term borrowings	$ 2,074	$ 2,506

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BORROWINGS - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) trust	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Short-term advances	$ 300.0	$ 400.0
Short-term advances, overnight maturities, percentage	20.80%	21.10%
Number of unconsolidated subsidiary trusts | trust	4
SOFR
Debt Instrument [Line Items]
Federal home loan bank, advances, interest rate	0.326%
Trust Preferred Securities | SOFR
Debt Instrument [Line Items]
Tenor spread adjustment	0.0026
FHLB
Debt Instrument [Line Items]
Credit available with FHLB	$ 11,400.0
Credit with FHLB utilized	2,800.0
FHLB | Letter of Credit
Debt Instrument [Line Items]
Credit with FHLB utilized	650.0
Other Wholesale Credit
Debt Instrument [Line Items]
Remaining borrowing capacity	$ 8,100.0
Maximum | FHLB
Debt Instrument [Line Items]
Effective interest rates	4.88%	4.88%
Minimum | FHLB
Debt Instrument [Line Items]
Effective interest rates	4.23%	4.23%
FHLB
Debt Instrument [Line Items]
Short-term advances	$ 540.0	$ 450.0
Short-term advances, overnight maturities, percentage	37.50%	23.70%
Other Subordinated Debt | Maximum
Debt Instrument [Line Items]
Debt term	1 year

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BORROWINGS - Summary of Long-Term Borrowings (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Federal Home Loan Bank advances	$ 1,350	$ 1,200
Senior notes	349	349
Subordinated notes	82	82
Junior subordinated debt	73	73
Other subordinated debt	267	267
Total long-term borrowings	$ 2,121	$ 1,971

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BORROWINGS - Schedule of Subordinated Debt (Details) $ in Millions	3 Months Ended
	Mar. 31, 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
4.950% Fixed-To-Floating Rate Subordinated Notes due 2029 | Other Subordinated Debt
Debt Instrument [Line Items]
Interest Rate	7.968%
Aggregate Principal Amount Issued	$ 120
Net Proceeds	118
Carrying Value	$ 119
4.950% Fixed-To-Floating Rate Subordinated Notes due 2029 | Other Subordinated Debt | SOFR
Debt Instrument [Line Items]
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
8.645% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 | Other Subordinated Debt
Debt Instrument [Line Items]
Interest Rate	8.605%
Aggregate Principal Amount Issued	$ 25
Net Proceeds	26
Carrying Value	$ 24
8.645% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 | Other Subordinated Debt | SOFR
Debt Instrument [Line Items]
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
5.000% Fixed-To-Floating Rate Subordinated Note due May 29, 2030 | Other Subordinated Debt | SOFR
Debt Instrument [Line Items]
Basis points, spread	4.64%

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BORROWINGS - Schedule of Junior Subordinated Debt Trusts (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Subordinated Borrowing [Line Items]
Junior subordinated debt	$ 73	$ 73
Trust Preferred Securities
Subordinated Borrowing [Line Items]
Junior subordinated debt	77
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	7.24%
F.N.B. Statutory Trust II | SOFR
Subordinated Borrowing [Line Items]
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	6.91%
Yadkin Valley Statutory Trust I | SOFR
Subordinated Borrowing [Line Items]
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	7.02%
FNB Financial Services Capital Trust I | SOFR
Subordinated Borrowing [Line Items]
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	7.07%
Patapsco Statutory Trust I | SOFR
Subordinated Borrowing [Line Items]
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	Mar. 31, 2024	Dec. 31, 2023
Derivatives, Fair Value [Line Items]
Notional amount	$ 14,201.0	$ 14,282.0
Derivative asset, not offset against collateral	99.0	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	341.0	293.0
Fair value, asset	119.0	116.0
Fair value, liability	360.0	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	2.0	0.0
Interest rate swaps – not designated
Derivatives, Fair Value [Line Items]
Derivative asset, not offset against collateral	99.0	74.0
Derivative liability, not offset against collateral	17.0	35.0
Derivative asset, not subject to master netting arrangement	17.0	35.0
Derivative liability, not subject to master netting arrangement	341.0	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	0.0	1.0
Derivative liability, not subject to master netting arrangement	0.0	4.0
Credit risk contracts – not designated
Derivatives, Fair Value [Line Items]
Notional amount	583.5
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	7,345.0	7,460.0
Subject to master netting arrangements: | Interest rate contracts – designated
Derivatives, Fair Value [Line Items]
Notional amount	1,700.0	1,800.0
Subject to master netting arrangements: | Interest rate swaps – not designated
Derivatives, Fair Value [Line Items]
Notional amount	5,645.0	5,660.0
Not subject to master netting arrangements:
Derivatives, Fair Value [Line Items]
Notional amount	6,856.0	6,822.0
Not subject to master netting arrangements: | Interest rate swaps – not designated
Derivatives, Fair Value [Line Items]
Notional amount	5,645.0	5,660.0
Not subject to master netting arrangements: | Interest rate lock commitments – not designated
Derivatives, Fair Value [Line Items]
Notional amount	242.0	239.0
Not subject to master netting arrangements: | Forward delivery commitments – not designated
Derivatives, Fair Value [Line Items]
Notional amount	260.0	294.0
Not subject to master netting arrangements: | Credit risk contracts – not designated
Derivatives, Fair Value [Line Items]
Notional amount	$ 709.0	$ 629.0

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Amounts Reclassified from AOCI (Details) - Interest rate contracts - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivatives	$ (12,000,000)	$ 5,000,000
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	(9,000,000)	(4,000,000)
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
	Mar. 31, 2024	Mar. 31, 2023
Derivative [Line Items]
Interest Income - Loans and Leases	$ 481,000,000	$ 394,000,000
Interest Expense - Short-Term Borrowings	28,000,000	10,000,000
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	(12,000,000)	(10,000,000)
Interest rate contracts | Interest Expense - Short-Term Borrowings
Derivative [Line Items]
Amount of gain (loss) reclassified from AOCI into net income	$ 4,000,000	$ 6,000,000

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Derivative [Line Items]
Notional amount	$ 14,201,000,000		$ 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	2 years 1 month 6 days
Period to reclassification of cash flow hedge gain loss	12 months
Derivative loss to be reclassified within twelve months	$ 37,800,000
Derivative loss to be reclassified within twelve months, net of tax	29,400,000
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	583,500,000
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	2 months
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	3 Months Ended
	Mar. 31, 2024	Mar. 31, 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	(1)
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	Mar. 31, 2024	Dec. 31, 2023
Derivative [Line Items]
Net Amount Presented in the Consolidated Balance Sheets	$ 99	$ 75
Financial Instruments	0	0
Cash Collateral	99	75
Net Amount	0	0
Interest rate swaps – not designated
Derivative [Line Items]
Net Amount Presented in the Consolidated Balance Sheets	99	74
Financial Instruments	0	0
Cash Collateral	99	74
Net Amount	0	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

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 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 swaps – not designated
Derivative [Line Items]
Net Amount Presented in the Consolidated Balance Sheets	17	35
Financial Instruments	0	0
Cash Collateral	17	35
Net Amount	0	0
Interest rate contracts – designated
Derivative [Line Items]
Net Amount Presented in the Consolidated Balance Sheets	2	$ 0
Financial Instruments	0
Cash Collateral	2
Net Amount	$ 0

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COMMITMENTS, CREDIT RISK AND CONTINGENCIES - Summary of Off-Balance Sheet Credit Risk Information (Details) - USD ($) $ in Millions	Mar. 31, 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	$ 14,242	$ 13,656

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COMMITMENTS, CREDIT RISK AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands	Feb. 05, 2024	Mar. 31, 2024	Dec. 31, 2023
Loss Contingencies [Line Items]
Percentage of commitments to extend credit dependent upon the financial condition of the customers		76.40%
Allowance for credit losses on loan commitments that are not unconditionally cancellable		$ 21,900	$ 21,500
Parent Company | Settled Litigation | Mortgage Loan Subsidies
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
	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares available up to (in shares)	7,397,956
Common stock shares remaining available for awards under plan (in shares)	1,816,061
Unrecognized compensation expense	$ 9.0
Performance- Based Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 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)	546,838	470,173
Unrecognized compensation expense	$ 8.7
Restricted Stock | Performance- Based Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards issued (in shares)	328,104	282,106

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STOCK INCENTIVE PLANS - Schedule of Restricted Stock Units Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Units
Shares, unvested units outstanding at end of period (in shares)	3,484,138
Restricted Stock
Units
Shares, unvested units outstanding at beginning of period (in shares)	3,502,598	4,821,182
Shares, granted (in shares)	546,838	470,173
Shares, net adjustment (in shares)	320,315	288,800
Shares, vested (in shares)	(873,153)	(1,198,383)
Shares, forfeited/expired/canceled (in shares)	(12,460)	(539,233)
Shares, dividend reinvestment (in shares)	0	37,587
Shares, unvested units outstanding at end of period (in shares)	3,484,138	3,880,126
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)	14.00	15.06
Weighted average grant price, net adjusted (USD per share)	0	8.04
Weighted average grant price, vested (USD per share)	11.12	8.31
Weighted average grant price, forfeited/expired/canceled (USD per share)	12.04	7.80
Weighted average grant price, dividend reinvestment (USD per share)	0	12.48
Weighted average grant price, invested units outstanding at end of period (USD per share)	$ 13.04	$ 11.69

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STOCK INCENTIVE PLANS - Schedule of Certain Information Related to Restricted Stock Units (Details) - Restricted Stock - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 9	$ 11
Tax benefit related to stock-based compensation expense	2	2
Fair value of units vested	$ 11	$ 17

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STOCK INCENTIVE PLANS - Schedule of Components of Restricted Stock Units (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock units (in shares) | shares	3,484,138
Unrecognized compensation expense	$ 9
Intrinsic value	$ 49
Weighted average remaining life (in years)	1 year 8 months 15 days
Service- Based Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock units (in shares) | shares	2,527,342
Unrecognized compensation expense	$ 8
Intrinsic value	$ 36
Weighted average remaining life (in years)	1 year 7 months 28 days
Performance- Based Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested restricted stock units (in shares) | shares	956,796
Unrecognized compensation expense	$ 1
Intrinsic value	$ 13
Weighted average remaining life (in years)	1 year 9 months 29 days

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INCOME TAXES - Schedule of Income Tax Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Current income taxes:
Federal taxes	$ 17	$ 31
State taxes	2	2
Total current income taxes	19	33
Deferred income taxes:
Federal taxes	13	2
State taxes	2	0
Total deferred income taxes	15	2
Income taxes	$ 34	$ 35
Statutory federal tax rate	21.00%	21.00%
Effective tax rate	21.50%	19.50%

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INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Deferred tax assets	$ 110.1	$ 120.8

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OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 6,050	$ 5,653
Other comprehensive (loss) income before reclassifications	(22)
Amounts reclassified from AOCI	7
Other Comprehensive Income (Loss)	(15)	42
Balance at end of period	6,006	5,788
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	(13)
Amounts reclassified from AOCI	0
Other Comprehensive Income (Loss)	(13)
Balance at end of period	(173)
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	(9)
Amounts reclassified from AOCI	7
Other Comprehensive Income (Loss)	(2)
Balance at end of period	(35)
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)
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(235)	(357)
Balance at end of period	$ (250)	$ (315)

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EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net income	$ 122	$ 147
Less: Preferred stock dividends	6	2
Net income available to common stockholders	116	145
Net income available to common stockholders	$ 116	$ 145
Basic weighted average common shares outstanding (in shares)	361,246,402	360,858,904
Net effect of dilutive stock options and restricted stock (in shares)	1,372,876	4,071,384
Diluted weighted average common shares outstanding (in shares)	362,619,278	364,930,288
Earnings per common share:
Basic (USD per share)	$ 0.32	$ 0.40
Diluted (USD per share)	$ 0.32	$ 0.40
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	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Supplemental Cash Flow Elements [Abstract]
Interest paid on deposits and other borrowings	$ 229	$ 101
Transfers of loans to other real estate owned	1	0
Loans transferred to portfolio from held for sale	$ 9	$ 15

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CASH FLOW INFORMATION - Additional Information (Details) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Supplemental Cash Flow Elements [Abstract]
Restricted cash	$ 0	$ 0

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BUSINESS SEGMENTS - Additional Information (Details)	3 Months Ended
	Mar. 31, 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
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Interest income	$ 543	$ 444
Interest expense	224	107
Net Interest Income	319	337
Provision for credit losses	14	14
Non-interest income	88	79
Non-interest expense	233	215
Amortization of intangibles	4	5
Income tax expense (benefit)	34	35
Net income (loss)	122	147
Total Assets	45,896	44,146	$ 46,158
Total intangibles	2,542	2,561
Operating Segments | Community Banking
Segment Reporting Information [Line Items]
Interest income	542	442
Interest expense	218	98
Net Interest Income	324	344
Provision for credit losses	14	14
Non-interest income	62	55
Non-interest expense	211	195
Amortization of intangibles	4	5
Income tax expense (benefit)	34	38
Net income (loss)	123	147
Total Assets	45,639	43,998
Total intangibles	2,507	2,526
Operating Segments | Wealth Management
Segment Reporting Information [Line Items]
Interest income	0	0
Interest expense	0	0
Net Interest Income	0	0
Provision for credit losses	0	0
Non-interest income	20	18
Non-interest expense	13	13
Amortization of intangibles	0	0
Income tax expense (benefit)	2	1
Net income (loss)	5	4
Total Assets	43	38
Total intangibles	9	9
Operating Segments | Insurance
Segment Reporting Information [Line Items]
Interest income	0	0
Interest expense	0	0
Net Interest Income	0	0
Provision for credit losses	0	0
Non-interest income	7	7
Non-interest expense	4	4
Amortization of intangibles	0	0
Income tax expense (benefit)	1	0
Net income (loss)	2	3
Total Assets	33	31
Total intangibles	26	26
Parent and Other
Segment Reporting Information [Line Items]
Interest income	1	2
Interest expense	6	9
Net Interest Income	(5)	(7)
Provision for credit losses	0	0
Non-interest income	(1)	(1)
Non-interest expense	5	3
Amortization of intangibles	0	0
Income tax expense (benefit)	(3)	(4)
Net income (loss)	(8)	(7)
Total Assets	181	79
Total intangibles	$ 0	$ 0

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FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	$ 3,226	$ 3,254
Loans held for sale	93	150	[1]
Loans receivable	46	45
Derivative financial instruments	119	116
Derivative financial instruments	360	328
U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	123	420
U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	72	79
U.S. government-sponsored entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	272	223
Agency MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	894	752
Agency collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	793	832
Agency commercial MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	1,005	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	27	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	123	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	3,103	2,834
Loans receivable	93	150
Derivative financial instruments	116	111
Derivative financial instruments	360	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	30,498	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	3,226	3,254
Loans held for sale	93	150
Loans receivable	46
Derivative financial instruments	119	116
Total assets measured at fair value on a recurring basis	3,484	3,520
Derivative financial instruments	360	328
Total liabilities measured at fair value on a recurring basis	360	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	123	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	72	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	272	223
Fair Value, Recurring | Agency MBS
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available for sale	894	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	793	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	1,005	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	27	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	357	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	115	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	123	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	123	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	123	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	3,103	2,834
Loans held for sale	93	150
Loans receivable	0
Derivative financial instruments	116	111
Total assets measured at fair value on a recurring basis	3,312	3,095
Derivative financial instruments	360	328
Total liabilities measured at fair value on a recurring basis	360	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	72	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	272	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	894	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	793	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	1,005	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	27	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	357	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	115	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	46
Derivative financial instruments	3	5
Total assets measured at fair value on a recurring basis	49	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	3 Months Ended	12 Months Ended
	Mar. 31, 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	46
Balance at end of period	49	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	46
Balance at end of period	46	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 ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Fair Value Measurements Disclosure [Line Items]
Collateral dependent loans, allowance for credit loss	$ 2,500,000
Provision for fair value measurements included in allowance for loan losses	2,500,000
Fair Value, Recurring
Fair Value Measurements Disclosure [Line Items]
Transfer into (from) level 3	46,500,000	$ 0
Fair Value, Nonrecurring
Fair Value Measurements Disclosure [Line Items]
Collateral dependent loans carrying value	29,400,000
Fair Value, Nonrecurring | Mortgage Servicing Rights
Fair Value Measurements Disclosure [Line Items]
Loan servicing rights	600,000
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	Mar. 31, 2024	Dec. 31, 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	$ 75.2	$ 71.8	$ 67.8	$ 68.6
Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	29.0	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	77.0	73.0
Level 3 | Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	29.0	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	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt securities available for sale	$ 3,226	$ 3,254
Debt securities held to maturity	3,547	3,593
Net loans and leases, including loans held for sale	46	45
Derivative assets	119	116
Long-term borrowings	616
Derivative liabilities	360	328
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	1,487	1,576
Debt securities available for sale	123	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	175	160
Deposits	28,050	28,496
Short-term borrowings	2,103	2,505
Long-term borrowings	0	0
Derivative liabilities	0	0
Accrued interest payable	64	69
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	0	0
Debt securities available for sale	3,103	2,834
Debt securities held to maturity	3,547	3,593
Net loans and leases, including loans held for sale	93	150
Loan servicing rights	0	0
Derivative assets	116	111
Accrued interest receivable	0	0
Deposits	6,629	6,158
Short-term borrowings	0	0
Long-term borrowings	1,386	1,192
Derivative liabilities	360	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	30,498	30,491
Loan servicing rights	77	73
Derivative assets	3	5
Accrued interest receivable	0	0
Deposits	0	0
Short-term borrowings	0	0
Long-term borrowings	772	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	1,487	1,576
Debt securities available for sale	3,226	3,254
Debt securities held to maturity	3,893	3,911
Net loans and leases, including loans held for sale	32,285	32,405
Loan servicing rights	64	61
Derivative assets	119	116
Accrued interest receivable	175	160
Deposits	34,735	34,711
Short-term borrowings	2,074	2,506
Long-term borrowings	2,121	1,971
Derivative liabilities	360	328
Accrued interest payable	64	69
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	1,487	1,576
Debt securities available for sale	3,226	3,254
Debt securities held to maturity	3,547	3,593
Net loans and leases, including loans held for sale	30,591	30,641
Loan servicing rights	77	73
Derivative assets	119	116
Accrued interest receivable	175	160
Deposits	34,679	34,654
Short-term borrowings	2,103	2,505
Long-term borrowings	2,158	1,928
Derivative liabilities	360	328
Accrued interest payable	$ 64	$ 69