What changed in this filing

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Item 1. Financial Statements

2022-11-04 compared with 2022-08-05 · 195 added, 167 removed, 1381 unchanged (21% of the section changed)

3 unchanged sentences

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

September 30,

2022 December 31,

47 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

51 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

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Pension and postretirement benefit obligations:

Unrealized gains arising during the period, net of tax expense of $ 0 , $ 0 , $ 0 and $ 0

Unrealized gains (losses) arising during the period, net of tax expense of $ 0 , $ 1 , $ 0 and $ 1

Other Comprehensive Income (Loss) ( 126 ) ( 6 ) ( 316 ) ( 13 )

9 unchanged sentences

Income (Loss) Treasury

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Balance at beginning of period $ 107 $ 3 $ 4,101 $ 981 $ ( 46 ) $ ( 109 ) $ 5,037

Comprehensive income 102 5 107

Comprehensive income (loss) 111 ( 6 ) 105

Dividends declared:

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Issuance of common stock — — — ( 1 ) ( 1 )

Repurchase of common stock ( 7 ) ( 7 )

Restricted stock compensation 5 5

Balance at end of period $ 107 $ 3 $ 4,106 $ 1,051 $ ( 52 ) $ ( 117 ) $ 5,098

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Balance at beginning of period $ 107 $ 4 $ 4,562 $ 1,182 $ ( 252 ) $ ( 167 ) $ 5,436

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Income (Loss) Treasury

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Balance at beginning of period $ 107 $ 3 $ 4,087 $ 869 $ ( 39 ) $ ( 68 ) $ 4,959

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Balance at end of period $ 107 $ 3 $ 4,106 $ 1,051 $ ( 52 ) $ ( 117 ) $ 5,098

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Balance at beginning of period $ 107 $ 3 $ 4,109 $ 1,110 $ ( 62 ) $ ( 117 ) $ 5,150

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(Dollars in millions)

Six Months Ended

Nine Months Ended

September 30,

Operating Activities

37 unchanged sentences

Net cash flows provided by (used in) financing activities 155 1,719

Net Increase in Cash and Cash Equivalents ( 1,464 ) 1,561

Net Increase (Decrease) in Cash and Cash Equivalents ( 1,217 ) 2,727

Cash and cash equivalents at beginning of period 3,493 1,383

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2022

September 30, 2022

The terms “FNB,” “the Corporation,” “we,” “us” and “our” throughout this Report mean F.N.B.

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and Charleston, South Carolina.

As of June 30, 2022, we had 338 banking offices throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington D.C.

As of September 30, 2022, we had 338 branches throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington D.C.

and Virginia.

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Such reclassifications had no impact on our net income and stockholders' equity.

Events occurring subsequent to June 30, 2022 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.

Events occurring subsequent to September 30, 2022 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.

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An entity is allowed to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures.

We are currently assessing the potential impact to our consolidated financial statements.

We plan to adopt this Update on January 1, 2023.

Adoption of this Update is not expected to have a material impact on our consolidated financial statements.

MERGERS AND ACQUISITIONS

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On January 22, 2022, we completed our acquisition of Howard, a bank holding company headquartered in Baltimore City, Maryland.

The acquisition enhances our presence in the Mid-Atlantic Region.

Additionally, cost savings, efficiencies and other benefits are expected from the combined operations.

The acquisition enhanced our presence in the Mid-Atlantic Region.

Additionally, cost savings, efficiencies and other benefits were realized from the combined operations.

On the acquisition date, Howard had assets with a net book value of approximately $ 2.4 billion, including $ 1.8 billion in both loans and deposits.

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Goodwill related to the transaction was recorded in the Community Banking business segment and is not deductible for income tax purposes as the acquisition was accounted for as a tax-free exchange for tax purposes.

We incurred merger expenses relating to the Howard acquisition of $ 30.2 million for the first six months of 2022.

We continue to analyze the valuations assigned to the acquired assets and assumed liabilities.

Due to the complexity in valuing the loans and the significant amount of data inputs required, the valuation of the loans is not yet final.

In addition, we are reviewing third-party valuations on acquired premises.

We are also assessing the valuation on deferred taxes.

During the second quarter, we completed the review of the third-party valuations for core deposit intangibles, deposits and debt.

There were no changes to provisional amounts for core deposit intangibles, deposits and debt.

We incurred merger expenses relating to the Howard acquisition of $ 30.6 million for the first nine months of 2022.

We analyzed the valuations assigned to the acquired assets and assumed liabilities.

We have completed the review of valuations for loans, core deposit intangibles, deposits and debt.

There were no changes to provisional amounts for these valuations.

We continue to assess the valuation on premises and deferred taxes.

Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered PCD.

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The transaction is expected to be completed in late 2022.

2022, pending satisfaction of customary closing conditions, including regulatory approvals and the approval of UB Bancorp's stockholders.

We have received all regulatory clearances and UB shareholder approval for the proposed merger to occur.

During the first nine months of 2022, we incurred merger expenses of $ 2.2 million related to the pending UB Bancorp acquisition.

The amortized cost and fair value of AFS debt securities are presented in the table below.

There was no ACL in the AFS portfolio at June 30, 2022 and December 31, 2021.

Accrued interest receivable on AFS debt securities totaled $ 8.6 million and $ 7.3 million at June 30, 2022 and December 31, 2021, respectively, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets.

There was no ACL in the AFS portfolio at September 30, 2022 and December 31, 2021.

Accrued interest receivable on AFS debt securities totaled $ 9.1 million and $ 7.3 million at September 30, 2022 and December 31, 2021, 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 the amortized cost basis of AFS debt securities.

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Debt Securities AFS:

June 30, 2022

September 30, 2022

Treasury $ 279 $ — $ ( 23 ) $ 256

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The amortized cost and fair value of HTM debt securities are presented in the table below.

The ACL for the HTM portfolio was $ 0.13 million and $ 0.05 million at June 30, 2022 and December 31, 2021, respectively.

Accrued interest receivable on HTM debt securities totaled $ 12.7 million and $ 12.3 million at June 30, 2022 and December 31, 2021, respectively, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets.

The ACL for the HTM portfolio was $ 0.12 million and $ 0.05 million at September 30, 2022 and December 31, 2021, respectively.

Accrued interest receivable on HTM debt securities totaled $ 11.9 million and $ 12.3 million at September 30, 2022 and December 31, 2021, 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 the amortized cost basis of HTM debt securities.

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Debt Securities HTM:

June 30, 2022

Treasury $ 1 $ — $ — $ 1

September 30, 2022

government agencies $ 1 $ — $ — $ 1

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Total debt securities HTM $ 3,463 $ 62 $ ( 19 ) $ 3,506

There were no significant gross gains or gross losses realized on securities during the six months ended June 30, 2022 or 2021.

As of June 30, 2022, the amortized cost and fair value of debt securities, by contractual maturities, were as follows:

There were no significant gross gains or gross losses realized on securities during the nine months ended September 30, 2022 or 2021.

Unrealized losses on the AFS and HTM portfolios are due to the increase in market interest rates with 85.8 % backed or sponsored by the U.S.

government as of September 30, 2022.

As of September 30, 2022, the amortized cost and fair value of debt securities, by contractual maturities, were as follows:

Available for Sale Held to Maturity

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Following is information relating to securities pledged:

(dollars in millions) June 30,

(dollars in millions) September 30,

2022 December 31,

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Securities pledged as a percent of total securities 95.6 % 87.9 %

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 continuous loss position:

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:

Less than 12 Months 12 Months or More Total

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Debt Securities AFS

June 30, 2022

September 30, 2022

Treasury 5 $ 212 $ ( 17 ) 1 $ 44 $ ( 6 ) 6 $ 256 $ ( 23 )

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Total 60 $ 1,679 $ ( 23 ) 14 $ 102 $ ( 3 ) 74 $ 1,781 $ ( 26 )

We evaluated the AFS debt securities that were in an unrealized loss position at June 30, 2022.

Based on the credit ratings and implied government guarantee for these securities, we concluded the loss position is temporary and caused by the movement of

interest rates and does not reflect any expected credit losses.

We evaluated the AFS debt securities that were in an unrealized loss position at September 30, 2022.

Based on the credit ratings and implied government guarantee for these securities, we concluded the loss position is temporary and caused by the

movement of interest rates and does not reflect any expected credit losses.

We do not intend to sell the AFS debt securities and it is not more likely than not that we will be required to sell the securities before the recovery of their amortized cost basis.

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Based on the nature of the issuers and current conditions, we have determined that securities backed by the UST, Fannie Mae, Freddie Mac, FHLB, Ginnie Mae, and the SBA have zero expected credit loss.

Our municipal bond portfolio, with a carrying amount of $ 1.0 billion as of June 30, 2022 is highly rated with an average rating of AA and 99 % of the portfolio having an A or better rating.

All the securities in the municipal portfolio are general obligation bonds.

Our municipal bond portfolio, with a carrying amount of $ 1.0 billion as of September 30, 2022 is highly rated with an average rating of AA and 100 % of the portfolio having an A or better rating.

All of the securities in the municipal portfolio are general obligation bonds.

Geographically, municipal bonds support our primary footprint as 61 % of the securities are from municipalities located in the primary states within which we conduct business.

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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 $ 21.7 million as of June 30, 2022 primarily consists of subordinated debentures of banks within our footprint.

Our corporate bond portfolio, with a carrying amount of $ 25.6 million as of September 30, 2022 primarily consists of subordinated debentures of banks within our footprint.

The average holding size of the securities in the corporate bond portfolio is $ 2.3 million.

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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 the Bank's loan portfolio as a proxy for our corporate bond portfolio.

For the year-to-date periods ending June 30, 2022 and 2021, we had no significant provision expense and no charge-offs or recoveries.

The ACL on the HTM portfolio was $ 0.13 million, consisting of $ 0.06 million relating to the municipal bond portfolio and $ 0.07 million relating to other debt securities, as of June 30, 2022 and $ 0.05 million relating to the municipal bond portfolio as of December 31, 2021.

No other securities portfolios had an ACL.

At June 30, 2022 and December 31, 2021, there were no securities that were past due or on non-accrual.

For the year-to-date periods ending September 30, 2022 and 2021, we had no significant provision expense and no charge-offs or recoveries.

The ACL on the HTM portfolio was $ 0.12 million, consisting of $ 0.06 million relating to the municipal bond portfolio and $ 0.06 million relating to other debt securities, as of September 30, 2022 and $ 0.05 million relating to the municipal bond portfolio as of December 31, 2021.

The AFS securities portfolios did no t have an ACL at September 30, 2022 or December 31, 2021.

At September 30, 2022 and December 31, 2021, there were no securities that were past due or on non-accrual.

LOANS AND LEASES

Accrued interest receivable on loans and leases, which totaled $ 60.8 million at June 30, 2022 and $ 48.9 million at December 31, 2021, is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets for both periods and not included in the following tables.

Accrued interest receivable on loans and leases, which totaled $ 75.5 million at September 30, 2022 and $ 48.9 million at December 31, 2021, is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets for both periods and 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:

(in millions) June 30, 2022 December 31, 2021

(in millions) September 30, 2022 December 31, 2021

Commercial real estate $ 10,841 $ 9,899

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Total loans and leases, net of unearned income $ 28,780 $ 24,968

The remaining accretable discount included in the amortized cost of acquired loans was $ 34.4 million and $ 30.0 million at June 30, 2022 and December 31, 2021, respectively, which includes the $ 10 million established for Howard at the time of acquisition.

The remaining accretable discount included in the amortized cost of acquired loans was $ 30.7 million and $ 30.0 million at September 30, 2022 and December 31, 2021, respectively, which includes the $ 10 million established for Howard at the time of acquisition.

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:

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• 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, except for PPP loans that are 100 % guaranteed by the SBA, which provides a reduced risk of loss to us on these loans.

PPP loans are included in the commercial and industrial category and comprise $ 85.8 million and $ 336.6 million of this category's outstanding balance at June 30, 2022 and December 31, 2021, respectively;

PPP loans are included in the commercial and industrial category and comprise $ 43.7 million and $ 336.6 million of this category's outstanding balance at September 30, 2022 and December 31, 2021, respectively;

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

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

(dollars in millions) June 30,

(dollars in millions) September 30,

2022 December 31,

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The following tables summarize the designated loan rating category by loan class including term loans on an amortized cost basis by origination year:

June 30, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total

September 30, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total

(in millions)

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Leases Non-accrual with No ACL

June 30, 2022

September 30, 2022

Commercial real estate $ 11 $ — $ 46 $ 57 $ 10,784 $ 10,841 $ 25

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Following is a summary of non-performing assets:

(dollars in millions) June 30,

(dollars in millions) September 30,

2022 December 31,

Non-accrual loans $ 88 $ 88

Total non-performing loans

Total non-performing loans and leases 88 88

Other real estate owned 6 8

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Asset quality ratios:

Non-performing loans / total loans and leases

0.33 % 0.35 %

Non-performing loans and leases / total loans and leases 0.30 % 0.35 %

Non-performing assets + 90 days past due / total loans and leases + OREO

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 June 30, 2022 and $ 1.6 million at December 31, 2021.

The recorded investment of residential-secured consumer OREO for which formal foreclosure proceedings are in process at June 30, 2022 and December 31, 2021 totaled $ 10.7 million and $ 4.3 million, respectively.

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 $ 1.0 million at September 30, 2022 and $ 1.6 million at December 31, 2021.

The recorded investment of residential-secured consumer OREO for which formal foreclosure proceedings are in process at September 30, 2022 and December 31, 2021 totaled $ 10.9 million and $ 4.3 million, respectively.

During 2020 and 2021, we extended the residential mortgage foreclosure moratorium beyond the requirements for government-backed loans under the CARES Act to all residential mortgage loan customers.

Approximately $ 53.5 million of commercial loans are collateral dependent at June 30, 2022.

Approximately $ 46.0 million of commercial loans are collateral dependent at September 30, 2022.

Repayment is expected to be substantially through the operation or sale of the collateral on the loan.

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Following is a summary of the composition of total TDRs:

(in millions) June 30,

(in millions) September 30,

2022 December 31,

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TDRs that are accruing and performing include loans that met the criteria for non-accrual of interest prior to restructuring for which we can reasonably estimate the timing and amount of the expected cash flows on such loans and for which we expect to fully collect the new carrying value of the loans.

During the six months ended June 30, 2022, we returned to accruing status $ 5.7 million in restructured residential mortgage loans that have consistently met their modified obligations for more than six months.

During the nine months ended September 30, 2022, we returned to accruing status $ 6.1 million in restructured residential mortgage loans that have consistently met their modified obligations for more than six months.

TDRs that are on non-accrual are not placed on accruing status until all delinquent principal and interest have been paid and the ultimate collectability of the remaining principal and interest is reasonably assured.

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Commercial loans over $ 1.0 million whose terms have been modified in a TDR are generally placed on non-accrual, individually analyzed and measured based on the fair value of the underlying collateral.

Our ACL includes specific reserves for commercial TDRs of $ 1.9 million at June 30, 2022, compared to $ 1.5 million at December 31, 2021, and pooled reserves for individual loans of $ 1.1 million and $ 1.5 million for those same periods, respectively, based on loan segment LGD.

default, the amount of the recorded investment in the TDR 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.

Our ACL includes specific reserves for commercial TDRs.

There was no specific reserve for commercial TDRs at September 30, 2022, compared to $ 1.5 million at December 31, 2021, and pooled reserves for individual loans of $ 1.1 million and $ 1.5 million for those same periods, respectively, based on loan segment LGD.

Upon default, the amount of the recorded investment in the TDR 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 in a TDR are pooled and measured based on the loan segment LGD.

Our ACL included pooled reserves for these classes of loans of $ 3.7 million for June 30, 2022 and $ 3.9 million for December 31, 2021.

Our ACL included pooled reserves for these classes of loans of $ 3.8 million for September 30, 2022 and $ 3.9 million for December 31, 2021.

Upon default of an individual loan, our charge-off policy is followed for that class of loan.

Following is a summary of TDR loans, by class, for loans that were modified during the periods indicated:

Three Months Ended June 30, 2022 Six Months Ended June 30, 2022

Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022

(dollars in millions) Number

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Total 33 $ 3 $ 3 103 $ 13 $ 12

Three Months Ended June 30, 2021 Six Months Ended June 30, 2021

Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021

(dollars in millions) Number

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Commercial and industrial 3 — — 8 1 —

Other 1 — — 1 — —

Total commercial loans 9 2 2 30 21 20

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Three Months Ended

June 30, 2022 Six Months Ended

June 30, 2022

September 30, 2022 Nine Months Ended

September 30, 2022

(dollars in millions) Number of

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Commercial real estate 7 $ 3 10 $ 3

Commercial and industrial 1 — 1 —

Total commercial loans 8 3 11 3

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Three Months Ended

June 30, 2021 Six Months Ended

June 30, 2021

September 30, 2021 Nine Months Ended

September 30, 2021

(dollars in millions) Number of

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Offs) Recoveries Provision for Credit Losses Balance at

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Commercial real estate $ 157.9 $ ( 1.3 ) $ 0.5 $ ( 0.8 ) $ ( 1.8 ) $ 155.3

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Offs) Recoveries Provision for Credit Losses Allowance for PCD Loans and Leases at Acquisition Balance at

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Commercial real estate $ 156.5 $ ( 2.9 ) $ 2.6 $ ( 0.3 ) $ ( 5.3 ) $ 4.4 $ 155.3

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Losses Balance at

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Commercial real estate $ 176 $ ( 3 ) $ 2 $ ( 1 ) $ ( 14 ) $ 161

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Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments $ 371 $ ( 7 ) $ 5 $ ( 2 ) $ ( 2 ) $ 367

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Commercial real estate $ 181 $ ( 9 ) $ 5 $ ( 4 ) $ ( 16 ) $ 161

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

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

At June 30, 2022 and December 31, 2021, we utilized a third-party consensus macroeconomic forecast reflecting the current and projected macroeconomic environment.

For our ACL calculation at June 30, 2022, the macroeconomic variables that we utilized included, but were not limited to:

(i) the purchase only Housing Price Index, which reflects growth of 6.0 % over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which reflects growth of 11.4 % over our R&S forecast period, (iii) S&P Volatility, which increases 2.3 % in 2022 and decreases 8.6 % in 2023 and (iv) bankruptcies, which increase steadily over the R&S forecast period but average below historical levels.

At September 30, 2022 and December 31, 2021, we utilized a third-party consensus macroeconomic forecast reflecting the current and projected macroeconomic environment.

For our ACL calculation at September 30, 2022, the macroeconomic variables that we utilized included, but were not limited to:

(i) the purchase only Housing Price Index, which reflects growth of 2.3 % over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which reflects growth of 4.1 % over our R&S forecast period, (iii) S&P Volatility, which decreases 5.5 % in 2022 and 2.4 % in 2023 and (iv) bankruptcies, which increase steadily over the R&S forecast period but average below historical levels.

Macroeconomic variables that we utilized for our ACL calculation as of December 31, 2021 included, but were not limited to:

(i) the purchase only Housing Price Index, which reflected growth of 6.3 % over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which reflected growth of 13.0 % over our R&S forecast period, (iii) S&P Volatility, which increases 15.2 % in 2022 and 1.9 % in 2023 and (iv) bankruptcies, which increase steadily over the R&S forecast period but average below historical levels.

The ACL on loans and leases of $ 378.0 million at June 30, 2022 increased $ 33.7 million, or 9.8 %, from December 31, 2021 primarily due to the Howard acquisition and the associated ACL attributable to the acquired loans and leases, significant loan growth and CECL-related model impacts from lower prepayment speed assumptions in the second quarter of 2022, partially offset by positive credit quality trends.

Our ending ACL coverage ratio at June 30, 2022 was 1.35 %, compared to 1.38 % at December 31, 2021.

Total provision for credit losses for the three months ended June 30, 2022 was $ 6.4 million.

Net recoveries were $ 0.4 million during the three months ended June 30, 2022, compared to net charge-offs of $ 3.8 million during the three months ended June 30, 2021, reflecting continued strong underlying portfolio credit trends.

Total provision for credit losses for the six months ended June 30, 2022 was $ 24.3 million and included $ 19.1 million of initial provision for non-PCD loans associated with the Howard acquisition.

Net charge-offs were $ 1.5 million during the six months ended June 30, 2022, compared to $ 11.0 million during the six months ended June 30, 2021.

The ACL on loans and leases of $ 385.3 million at September 30, 2022 increased $ 41.1 million, or 11.9 %, from December 31, 2021 primarily due to the Howard acquisition and the associated ACL attributable to the acquired loans and leases, significant loan growth and CECL-related model impacts from a forecasted macroeconomic slowdown and lower prepayment speed assumptions in the third quarter of 2022, partially offset by positive credit quality performance.

Our ending ACL coverage ratio at September 30, 2022 was 1.34 %, compared to 1.38 % at December 31, 2021.

Total provision for credit losses for the three months ended September 30, 2022 was $ 11.2 million.

Net charge-offs were $ 2.8 million during the three months ended September 30, 2022, compared to net charge-offs of $ 1.6 million during the three months ended September 30, 2021, reflecting continued strong underlying portfolio credit performance.

Total provision for credit losses for the nine months ended September 30, 2022 was $ 35.5 million and included $ 19.1 million of initial provision for non-PCD loans associated with the Howard acquisition.

Net charge-offs were $ 4.3 million during the nine months ended September 30, 2022, compared to $ 12.5 million during the nine months ended September 30, 2021.

LOAN SERVICING

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The unpaid principal balance of mortgage loans serviced for others is listed below:

(in millions) June 30,

(in millions) September 30,

2022 December 31,

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2022 2021 2022 2021

Mortgage loans sold with servicing retained $ 204 $ 382 $ 870 $ 1,406

Pretax net gains resulting from above loan sales (1)

Pre-tax net (losses) gains resulting from above loan sales (1)

( 2 ) 10 ( 9 ) 36

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2022 2021 2022 2021

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Fair value, end of period 69.6 43.2 69.6 43.2

We had no valuation allowance for MSRs as of June 30, 2022, compared to $ 2.5 million at December 31, 2021.

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 with the use of independent third-party valuations.

We had no valuation allowance for MSRs as of September 30, 2022, compared to $ 2.5 million at December 31, 2021.

Changes in prepayment speed assumptions have the most significant impact on the fair value of MSRs.

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

(dollars in millions) June 30,

(dollars in millions) September 30,

2022 December 31,

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The exercise of lease renewal options is at our sole discretion.

As of June 30, 2022, we had operating lease right-of-use assets and operating lease liabilities of $ 136.2 million and $ 145.9 million, respectively.

As of September 30, 2022, we had operating lease right-of-use assets and operating lease liabilities of $ 134.2 million and $ 144.5 million, respectively.

We have finance lease right-of-use assets and finance lease liabilities of $ 22.5 million and $ 22.9 million, respectively.

Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As of June 30, 2022, we have certain operating lease agreements, primarily for administrative office space, that have not yet commenced.

As of September 30, 2022, 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 $ 69.2 million in right-of-use assets and $ 90.6 million in other liabilities.

These operating leases are currently expected to commence in 2023 with lease terms up to 16 years.

These operating leases are currently expected to commence in 2023 with lease terms of up to 16 years.

These operating leases include the lease, with a related party, of the future new FNB headquarters building in Pittsburgh, Pennsylvania.

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(dollars in millions) 2022 2021 2022 2021

3 unchanged sentences

Other information related to leases is as follows:

Six Months Ended

Nine Months Ended

September 30,

(dollars in millions) 2022 2021

13 unchanged sentences

(in millions) Operating Leases Finance Leases Total Leases

June 30, 2022

September 30, 2022

2022 $ 7 $ — $ 7

8 unchanged sentences

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, at June 30, 2022 and December 31, 2021.

(in millions) Total Assets Total Liabilities Maximum Exposure to Loss

June 30, 2022

September 30, 2022

Trust preferred securities (1)

28 unchanged sentences

The following table presents the balances of our affordable housing tax credit investments and related unfunded commitments:

(in millions) June 30,

(in millions) September 30,

2022 December 31,

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2022 2021 2022 2021

7 unchanged sentences

Following is a summary of short-term borrowings:

(in millions) June 30,

(in millions) September 30,

2022 December 31,

6 unchanged sentences

Securities are pledged to these customers in an amount at least equal to the outstanding balance.

We did no t have any short-term FHLB advances with overnight maturities as of June 30, 2022 or December 31, 2021.

At June 30, 2022, $ 930.0 million, or 100.0 %, of the short-term FHLB advances were swapped to fixed rates with various maturities through 2024.

We did no t have any short-term FHLB advances with overnight maturities as of September 30, 2022 or December 31, 2021.

At September 30, 2022, $ 930.0 million, or 100.0 %, of the short-term FHLB advances were swapped to fixed rates with various maturities through 2024.

This compares to $ 1.0 billion, or 100.0 %, as of December 31, 2021.

Following is a summary of long-term borrowings:

(in millions) June 30,

(in millions) September 30,

2022 December 31,

6 unchanged sentences

Those additions are reflected in the balances above and in the tables below.

Our banking affiliate has available credit with the FHLB of $ 9.3 billion, of which $ 0.9 billion was utilized and included in short-term borrowings as of June 30, 2022.

During the third quarter of 2022, we completed a debt offering in which we issued $ 350 million aggregate principal amount of 5.150 % fixed-rate senior notes due in 2025.

The net proceeds of the debt offering after deducting underwriting discounts and commissions and offering costs were $ 347.4 million.

These proceeds were used for general corporate purposes, which may include repayment of the $ 300 million in 2.200 % Senior Notes due February 2023, investments at the holding company level, capital to support the growth of FNBPA and refinancing of outstanding indebtedness.

Our banking affiliate has available credit with the FHLB of $ 9.4 billion, of which $ 0.9 billion was utilized and included in short-term borrowings as of September 30, 2022.

The short-term FHLB borrowings are secured by loans collateralized by residential mortgages, home equity lines of credit, commercial real estate and FHLB stock and are scheduled to mature in various amounts periodically during 2022.

There were no long-term FHLB borrowings as of June 30, 2022 or December 31, 2021.

There were no long-term FHLB borrowings as of September 30, 2022 or December 31, 2021.

Effective interest rates paid on the long-term FHLB borrowings held during 2021 ranged from 0.26 % to 0.29 % for the year ended December 31, 2021.

The following table provides information relating to our senior notes and other subordinated debt as of June 30, 2022.

The following table provides information relating to our senior notes and other subordinated debt as of September 30, 2022.

The subordinated notes are eligible for treatment as tier 2 capital for regulatory capital purposes.

3 unchanged sentences

$ 300 $ 298 $ 300 2/24/2023 2.200 %

5.150 % Senior Notes due August 25, 2025

350 347 347 8/25/2025 5.150 %

4.950 % Fixed-To-Floating Rate Subordinated Notes due 2029 (1)

15 unchanged sentences

We record the distributions on the junior subordinated debt issued to the Trusts as interest expense.

The following table provides information relating to the Trusts as of June 30, 2022:

The following table provides information relating to the Trusts as of September 30, 2022:

(dollars in millions) Trust

19 unchanged sentences

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:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Notional Fair Value Notional Fair Value

12 unchanged sentences

Total $ 13,516 $ 87 $ 439 $ 14,526 $ 185 $ 45

The change in the fair value of assets and liabilities from December 31, 2021 is due to a significant increase in rates during 2022.

The change in the fair value of liabilities from December 31, 2021 is due to a significant increase in interest rates during 2022.

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.

14 unchanged sentences

Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income

Six Months Ended

June 30, Six Months Ended

Nine Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2022 2021 2022 2021

3 unchanged sentences

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

Six months ended June 30,

Nine months ended September 30,

(in millions) Interest Income - Loans and Leases Interest Expense - Short-Term Borrowings Interest Income - Loans and Leases Interest Expense - Short-Term Borrowings

4 unchanged sentences

Amount of gain (loss) reclassified from AOCI into net income ( 1 ) ( 7 ) 1 ( 15 )

As of June 30, 2022, the maximum length of time over which forecasted interest cash flows are hedged is 3.3 years.

In the twelve months that follow June 30, 2022, we expect to reclassify from the amount currently reported in AOCI net derivative losses of $ 13.9 million ($ 10.8 million net of tax), in association with interest on the hedged loans and FHLB advances.

This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to June 30, 2022.

As of September 30, 2022, the maximum length of time over which forecasted interest cash flows are hedged is 3.0 years.

In the twelve months that follow September 30, 2022, we expect to reclassify from the amount currently reported in AOCI net derivative losses of $ 17.6 million ($ 13.6 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 September 30, 2022.

There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness related to these cash flow hedges.

Also, during the six months ended June 30, 2022 and 2021, 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.

Also, during the nine months ended September 30, 2022 and 2021, 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

1 unchanged sentence

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 $ 286.3 million as of June 30, 2022 have remaining terms ranging from one month to nineteen 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 June 30, 2022 and $ 0.2 million at December 31, 2021.

The fair values of risk participation agreements purchased and sold were $ 0.2 million and $ 0.1 million, respectively, at June 30, 2022 and $ 0.1 million and $ 0.2 million, respectively at December 31, 2021.

Risk participation agreements sold with notional amounts totaling $ 323.9 million as of September 30, 2022 have remaining terms ranging from five months to nineteen 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 September 30, 2022 and $ 0.2 million at December 31, 2021.

The fair values of risk participation agreements purchased and sold were $ 0.1 million and $ 0.1 million, respectively, at September 30, 2022 and $ 0.1 million and $ 0.2 million, respectively at December 31, 2021.

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

Six Months Ended

Nine Months Ended

September 30,

(in millions) Consolidated Statements of Income Location 2022 2021

9 unchanged sentences

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 an additional $ 0.0 million and $ 0.2 million as of June 30, 2022 and December 31, 2021, respectively, in excess of amounts previously posted as collateral with the respective counterparty.

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 an additional $ 0.1 million and $ 0.2 million as of September 30, 2022 and December 31, 2021, respectively, 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:

6 unchanged sentences

Collateral Net

June 30, 2022

September 30, 2022

Derivative Assets

4 unchanged sentences

Interest rate contracts:

Designated $ 1 $ — $ 1 $ —

Not designated 1 — 1 —

16 unchanged sentences

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

(in millions) June 30,

(in millions) September 30,

2022 December 31,

1 unchanged sentence

Standby letters of credit 210 194

At June 30, 2022, funding of 71.9 % of the commitments to extend credit was dependent on the financial condition of the customer.

At September 30, 2022, funding of 71.6 % 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.

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.

1 unchanged sentence

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 $ 18.2 million at June 30, 2022 and $ 19.2 million at December 31, 2021.

Our AULC for commitments that are not unconditionally cancellable, which is included in other liabilities on the Consolidated Balance Sheets, was $ 19.4 million at September 30, 2022 and $ 19.2 million at December 31, 2021.

Additional information relating to the AULC is provided in Note 6, "Allowance for Credit Losses on Loans and Leases" in the Notes to Consolidated Financial Statements.

23 unchanged sentences

The assumptions used for this valuation include stock price volatility, risk-free interest rate and dividend yield.

We granted 1,219,416 and 1,102,607 restricted stock units during the six months ended June 30, 2022 and 2021, respectively, including 297,508 and 325,284 performance-based restricted stock units during those same periods, respectively.

As of June 30, 2022, we had available up to

9,881,378 shares of common stock to issue under this Plan, including 7,397,956 shares registered during the second quarter of 2022.

We granted 1,266,821 and 1,113,314 restricted stock units during the nine months ended September 30, 2022 and 2021, respectively, including 297,508 and 325,284 performance-based restricted stock units during those same periods, respectively.

As of September 30, 2022, we had available

up to 9,877,023 shares of common stock to issue under this Plan, including 7,397,956 shares registered during the second quarter of 2022.

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.

1 unchanged sentence

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

Six Months Ended June 30,

Nine Months Ended September 30,

Units Weighted

9 unchanged sentences

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

(in millions) Six Months Ended

(in millions) Nine Months Ended

September 30,

Stock-based compensation expense $ 15 $ 17

1 unchanged sentence

Fair value of units vested 21 16

As of June 30, 2022, there was $ 14.0 million of unrecognized compensation cost related to unvested restricted stock units, including $ 1.9 million that is subject to accelerated vesting under the Plan’s immediate vesting upon retirement.

The components of the restricted stock units as of June 30, 2022 are as follows:

As of September 30, 2022, there was $ 12.1 million of unrecognized compensation cost related to unvested restricted stock units, including $ 1.2 million that is subject to accelerated vesting under the Plan’s immediate vesting upon retirement.

The components of the restricted stock units as of September 30, 2022 are as follows:

(dollars in millions) Service-

8 unchanged sentences

We issue shares of treasury stock or authorized but unissued shares to satisfy stock options exercised.

As of June 30, 2022, we had 176,366 stock options outstanding and exercisable at a weighted average exercise price per share of $ 8.96 , compared to 170,647 stock options outstanding and exercisable at a weighted average exercise price per share of $ 8.75 as of June 30, 2021.

The intrinsic value of outstanding and exercisable stock options at June 30, 2022 was $ 0.3 million.

As of September 30, 2022, we had 167,948 stock options outstanding and exercisable at a weighted average exercise price per share of $ 9.03 , compared to 170,529 stock options outstanding and exercisable at a weighted average exercise price per share of $ 8.75 as of September 30, 2021.

The intrinsic value of outstanding and exercisable stock options at September 30, 2022 was $ 0.4 million.

The aggregate intrinsic value represents the amount by which the fair value of underlying stock exceeds the option exercise price.

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(dollars in millions) 2022 2021 2022 2021

10 unchanged sentences

Effective tax rate 20.7 19.7 20.5 19.5

The increase in the effective tax rate for the six months ended June 30, 2022 compared to 2021 was primarily due to higher state income taxes and nondeductible merger-related expenses resulting from the Howard acquisition.

The increase in the effective tax rate for the nine months ended September 30, 2022 compared to 2021 was primarily driven by higher state income taxes and increased FDIC insurance deduction disallowance.

Deferred Income Taxes

1 unchanged sentence

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 $ 115.3 million and $ 43.4 million at June 30, 2022 and December 31, 2021, respectively.

Net deferred tax assets were $ 150.4 million and $ 43.4 million at September 30, 2022 and December 31, 2021, respectively.

The increase is due to the acquisition of net deferred taxes from Howard, as well as increases in the deferred tax asset related to unrealized losses on debt securities.

8 unchanged sentences

Obligations Total

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Balance at beginning of period $ 8 $ ( 22 ) $ ( 48 ) $ ( 62 )

11 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

( dollars in millions, except per share data)

9 unchanged sentences

Diluted $ 0.38 $ 0.34 $ 0.83 $ 0.93

There were no anti-dilutive shares for either the three months ended or six months ended June 30, 2022 and 2021.

There were no anti-dilutive shares for either the three months ended or nine months ended September 30, 2022 and 2021.

In January 2022, we issued 34.1 million common shares as part of the Howard acquisition.

1 unchanged sentence

Following is a summary of supplemental cash flow information:

Six Months Ended

Nine Months Ended

September 30,

(in millions) 2022 2021

2 unchanged sentences

Transfers of loans to other real estate owned 1 3

We did no t have any restricted cash as of June 30, 2022 and 2021.

We did no t have any restricted cash as of September 30, 2022 and 2021.

Supplemental non-cash information relating to the Howard acquisition is included in Note 3, Mergers and Acquisitions.

15 unchanged sentences

Other Consolidated

At or for the Three Months Ended June 30, 2022

At or for the Three Months Ended September 30, 2022

Interest income $ 342 $ — $ — $ 1 $ 343

10 unchanged sentences

Total intangibles 2,451 9 27 — 2,487

At or for the Three Months Ended June 30, 2021

At or for the Three Months Ended September 30, 2021

Interest income $ 255 $ — $ — $ 1 $ 256

15 unchanged sentences

Other Consolidated

At or for the Six Months Ended June 30, 2022

At or for the Nine Months Ended September 30, 2022

Interest income $ 874 $ — $ — $ 3 $ 877

10 unchanged sentences

Total intangibles 2,451 9 27 — 2,487

At or for the Six Months Ended June 30, 2021

At or for the Nine Months Ended September 30, 2021

Interest income $ 759 $ — $ — $ 1 $ 760

15 unchanged sentences

(in millions) Level 1 Level 2 Level 3 Total

June 30, 2022

September 30, 2022

Assets Measured at Fair Value

54 unchanged sentences

Commitments Total

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Balance at beginning of period $ — $ 9 $ 9

13 unchanged sentences

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.

There were no transfers of assets or liabilities between the hierarchy levels during the first six months of 2022 or 2021.

There were no transfers of assets or liabilities between the hierarchy levels during the first nine months of 2022 or 2021.

From time to time, we measure certain assets at fair value on a non-recurring basis.

3 unchanged sentences

(in millions) Level 1 Level 2 Level 3 Total

June 30, 2022

September 30, 2022

Collateral dependent loans $ — $ — $ 17 $ 17

7 unchanged sentences

Other real estate owned — — 2 2

The fair value amounts for collateral dependent loans and OREO in the table above were estimated at a date during the six months or twelve months ended June 30, 2022 and December 31, 2021, respectively.

The fair value amounts for collateral dependent loans and OREO in the table above were estimated at a date during the nine months or twelve months ended September 30, 2022 and December 31, 2021, respectively.

Consequently, the fair value information presented is not necessarily as of the period’s end.

Collateral dependent loans measured or re-measured at fair value on a non-recurring basis during the six months ended June 30, 2022 had a carrying amount of $ 14.9 million, which includes an allocated

ACL of $ 9.0 million.

The ACL includes a provision applicable to the current period fair value measurements of $ 0.3 million, which was included in provision for credit losses for the six months ended June 30, 2022.

MSRs measured at fair value on a non-recurring basis had a carrying value of $ 0.03 million, which included a valuation allowance of $ 1 thousand, as of June 30, 2022.

The valuation allowance reflects a recovery of $ 2.5 million included in earnings for the six months ended June 30, 2022.

SBA servicing assets measured at fair value on a non-recurring basis had a carrying value of $ 2.3 million, which included a valuation allowance of $ 1.5 million, as of June 30, 2022.

There was no recovery of the valuation allowance included in earnings for the six months ended June 30, 2022.

OREO measured at fair value on a non-recurring basis during 2022 had a carrying amount of $ 2.4 million, which included a valuation allowance of $ 0.3 million, as of June 30, 2022.

The valuation allowance includes a loss of $ 0.3 million, which was included in earnings for the six months ended June 30, 2022.

Collateral dependent loans measured or re-measured at fair value on a non-recurring basis during the nine months ended September 30, 2022 had a carrying amount of $ 16.6 million,

which includes an allocated ACL of $ 5.8 million.

The ACL includes a credit to the provision applicable to the current period fair value measurements of $ 2.5 million, which was a reduction to the provision for credit losses for the nine months ended September 30, 2022.

As of September 30, 2022, there was no MSRs measured at fair value on a non-recurring basis, and no related valuation allowance.

There was a recovery of a prior valuation allowance of $ 2.5 million included in earnings for the nine months ended September 30, 2022.

SBA servicing assets measured at fair value on a non-recurring basis had a carrying value of $ 2.2 million, which included a valuation allowance of $ 1.4 million, as of September 30, 2022.

There was no recovery of the valuation allowance included in earnings for the nine months ended September 30, 2022.

OREO measured at fair value on a non-recurring basis during 2022 had a carrying amount of $ 3.2 million, which included a valuation allowance of $ 0.5 million, as of September 30, 2022.

The valuation allowance includes a loss of $ 0.5 million, which was included in earnings for the nine months ended September 30, 2022.

Fair Value of Financial Instruments

4 unchanged sentences

Value Level 1 Level 2 Level 3

June 30, 2022

September 30, 2022

Financial Assets

28 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements