3 unchanged sentences
(Dollars in millions, except share and per share data)
−Removed: September 30,
2025 December 31,
26 unchanged sentences
Total Liabilities 42,602 42,323
−Removed: Stockholders’ Equity
−Removed: Preferred stock
−Removed: Issued – 0 and 110,877 shares - $ 0.01 par value
+Added: Shareholders’ Equity
Common stock - $ 0.01 par value
6 unchanged sentences
( 186 ) ( 180 )
−Removed: Total Stockholders’ Equity 6,249 6,050
−Removed: Total Liabilities and Stockholders’ Equity $ 47,976 $ 46,158
+Added: Total Shareholders’ Equity 6,418 6,302
+Added: Total Liabilities and Shareholders’ Equity $ 49,020 $ 48,625
(1) Amount represents loans for which we have elected the fair value option.
4 unchanged sentences
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2024 2023 2024 2023
Interest Income
Loans and leases, including fees $ 480 $ 481
+Added: Investment Securities:
Taxable 55 46
Tax-exempt 7 7
−Removed: Other 12 13 29 33
Total Interest Income 559 543
17 unchanged sentences
Bank owned life insurance 5 3
−Removed: Other 4 4 12 10
Total Non-Interest Income 88 88
3 unchanged sentences
Equipment 26 24
−Removed: Amortization of intangibles 4 5 13 15
Outside services 26 23
2 unchanged sentences
Bank shares and franchise taxes 4 4
−Removed: Merger-related — — — 2
−Removed: Other 29 19 61 57
Total Non-Interest Expense 246 237
3 unchanged sentences
Preferred stock dividends — 6
−Removed: Net Income Available to Common Stockholders $ 110 $ 143 $ 349 $ 428
+Added: Net Income Available to Common Shareholders $ 117 $ 116
Earnings per Common Share
6 unchanged sentences
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2024 2023 2024 2023
Net income $ 117 $ 122
Other comprehensive income (loss):
−Removed: Securities available for sale:
+Added: Debt securities available for sale:
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $ 9 and $( 4 )
−Removed: 73 ( 26 ) 62 ( 22 )
Derivative instruments:
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $ 2 and $( 3 )
−Removed: 6 ( 7 ) ( 6 ) ( 17 )
−Removed: Reclassification adjustment for gains included in net income, net of tax expense of $ 3 , $ 2 , $ 7 and $ 4
+Added: Reclassification adjustment for gains (losses) included in net income, net of tax expense (benefit) of $ 2 and $ 2
Pension and postretirement benefit obligations:
−Removed: Unrealized gains arising during the period, net of tax expense of $ 0 , $ 0 , $ 0 and $ 0
+Added: Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $ 0 and $ 0
Other Comprehensive Income (Loss) 48 ( 15 )
−Removed: Comprehensive Income $ 199 $ 118 $ 436 $ 409
+Added: Comprehensive Income (Loss) $ 165 $ 107
See accompanying Notes to Consolidated Financial Statements (unaudited)
CORPORATION AND SUBSIDIARIES
−Removed: CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
+Added: CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Dollars in millions, except per share data)
4 unchanged sentences
Income (Loss) Treasury
−Removed: Three Months Ended September 30, 2023
−Removed: Balance at beginning of period $ 107 $ 4 $ 4,686 $ 1,564 $ ( 355 ) $ ( 188 ) $ 5,818
−Removed: Comprehensive income (loss) 145 ( 27 ) 118
−Removed: Dividends declared:
−Removed: Preferred stock:
−Removed: $ 18.13 /share
−Removed: Common stock:
−Removed: $ 0.12 /share
−Removed: ( 43 ) ( 43 )
−Removed: Issuance of common stock — 1 — — 1
−Removed: Restricted stock compensation 2 2
−Removed: Balance at end of period $ 107 $ 4 $ 4,689 $ 1,664 $ ( 382 ) $ ( 188 ) $ 5,894
−Removed: Three Months Ended September 30, 2024
−Removed: Balance at beginning of period $ — $ 4 $ 4,690 $ 1,820 $ ( 243 ) $ ( 181 ) $ 6,090
−Removed: Comprehensive income (loss) 110 89 199
−Removed: Dividends declared:
−Removed: Common stock:
−Removed: $ 0.12 /share
−Removed: ( 44 ) ( 44 )
−Removed: Issuance of common stock — ( 1 ) — 1 —
−Removed: Repurchase of common stock — —
−Removed: Restricted stock compensation 4 4
−Removed: Balance at end of period $ — $ 4 $ 4,693 $ 1,886 $ ( 154 ) $ ( 180 ) $ 6,249
−Removed: Stock Additional
−Removed: Capital Retained
−Removed: Earnings Accumulated
−Removed: Comprehensive
−Removed: Income (Loss) Treasury
−Removed: Nine Months Ended September 30, 2023
+Added: Three Months Ended March 31, 2024
Balance at beginning of period $ 107 $ 4 $ 4,692 $ 1,669 $ ( 235 ) $ ( 187 ) $ 6,050
6 unchanged sentences
( 44 ) ( 44 )
+Added: Redemption of preferred stock ( 107 ) ( 4 ) ( 111 )
Issuance of common stock — ( 8 ) — 5 ( 3 )
−Removed: Repurchase of common stock ( 37 ) ( 37 )
Restricted stock compensation 10 10
+Added: Adoption of new accounting standards ( 1 ) ( 1 )
Balance at end of period $ — $ 4 $ 4,694 $ 1,740 $ ( 250 ) $ ( 182 ) $ 6,006
−Removed: Nine Months Ended September 30, 2024
+Added: Three Months Ended March 31, 2025
Balance at beginning of period $ — $ 4 $ 4,695 $ 1,952 $ ( 169 ) $ ( 180 ) $ 6,302
Comprehensive income (loss) 117 48 165
−Removed: Dividends declared:
−Removed: Preferred stock:
−Removed: $ 18.13 /share
−Removed: Common stock:
+Added: Dividends declared on common stock:
$ 0.12 /share
( 44 ) ( 44 )
−Removed: Redemption of preferred stock ( 107 ) ( 4 ) ( 111 )
Issuance of common stock — ( 9 ) — 4 ( 5 )
1 unchanged sentence
Restricted stock compensation 10 10
−Removed: Adoption of new accounting standard ( 1 ) ( 1 )
Balance at end of period $ — $ 4 $ 4,696 $ 2,025 $ ( 121 ) $ ( 186 ) $ 6,418
3 unchanged sentences
(Dollars in millions)
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended
Operating Activities
6 unchanged sentences
Loans sold 353 356
−Removed: Net (gain) loss on sale of loans ( 10 ) ( 1 )
+Added: Net (gains) losses on sale of loans ( 4 ) ( 3 )
Net change in:
3 unchanged sentences
Other, net ( 112 ) 63
−Removed: Net cash flows provided by operating activities 316 443
+Added: Net cash flows provided by (used in) operating activities 64 245
Investing Activities
29 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: September 30, 2024
+Added: March 31, 2025
The terms “FNB,” “the Corporation,” “we,” “us” and “our” throughout this Report mean F.N.B.
10 unchanged sentences
and Charleston, South Carolina.
−Removed: As of September 30, 2024, we had 349 branches throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington D.C.
+Added: As of March 31, 2025, we had 351 branches throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington D.C.
and Virginia.
12 unchanged sentences
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.
−Removed: 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.
+Added: Investments in companies that are not consolidated are accounted for using the equity method when we 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.
3 unchanged sentences
Certain prior period amounts have been reclassified to the current period presentation.
−Removed: Such reclassifications had no impact on our net income and stockholders' equity.
−Removed: Events occurring subsequent to September 30, 2024 have been evaluated for potential recognition or disclosure in the Consolidated Financial Statements through the date of the filing of the Consolidated Financial Statements with the SEC.
+Added: Such reclassifications had no impact on our net income and shareholders' equity.
+Added: Events occurring subsequent to March 31, 2025 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.
7 unchanged sentences
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 2024 Annual Report on Form 10-K .
−Removed: Adoption of New Accounting Standards
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: We historically applied proportional amortization to the majority of our LIHTC investments.
−Removed: LIHTCs that do not meet the requirements of the proportional amortization method are recognized using the equity method.
−Removed: See Note 8, "Variable Interest Entities" for additional information.
NEW ACCOUNTING STANDARDS
1 unchanged sentence
Standard Description Financial Statements Impact
+Added: Income Statement
+Added: ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures:
+Added: Clarifying the Effective Date
+Added: ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures:
+Added: Disaggregation of Income Statement Expenses
+Added: This Update requires public business entities to disclose, on an annual and interim basis, disaggregated information about certain income statement line items in a tabular format in the notes to the financial statements.
+Added: Specifically, entities must disaggregate any relevant expense caption that includes one or more of the following natural expense categories:
+Added: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, (5) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities (DD&A).
+Added: Additionally, this Update also requires entities to disclose selling expense on both an annual and interim bases.
+Added: This Update does not change the requirements for the presentation of expenses on the face of the income statement.
+Added: This Update is to be applied prospectively for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.
+Added: Early adoption and retrospective application are permitted.
+Added: We are currently evaluating the effect this Update will have on related disclosures and our processes, systems, and controls related to the disclosures.
+Added: Standard Description Financial Statements Impact
ASU 2023-09, Income Taxes:
2 unchanged sentences
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.
−Removed: 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.
+Added: This Update is to be applied using a prospective method with an option to apply it retrospectively for each period presented and is effective as of January 1, 2025.
Early adoption is permitted.
−Removed: 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.
−Removed: Standard Description Financial Statements Impact
+Added: We adopted this ASU using the prospective method for the period beginning January 1, 2025.
+Added: The adoption of this Update did not have a material impact on our consolidated financial statements.
Segment Reporting
1 unchanged sentence
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.
−Removed: 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.
+Added: 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 is effective for interim periods beginning on January 1, 2025.
Early adoption is permitted.
−Removed: 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.
−Removed: Tax Equity Investments
−Removed: ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323):
−Removed: 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.
−Removed: 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.
−Removed: This Update is to be applied using either a modified retrospective or a retrospective method and is effective as of January 1, 2024.
−Removed: Early adoption of this Update is permitted.
−Removed: We adopted this Update on January 1, 2024 on a modified retrospective basis for tax credit programs that are eligible to apply proportional amortization.
−Removed: As a result, we recorded a reduction of $ 0.5 million in retained earnings for the cumulative effect of the adoption.
+Added: We adopted this Update on a retrospective basis for the annual period ending December 31, 2024 and for the interim period beginning January 1, 2025.
+Added: The adoption of this Update did not have a material impact on our consolidated financial statements.
+Added: INVESTMENT SECURITIES
The amortized cost and fair value of AFS debt securities are presented in the table below.
−Removed: There was no ACL associated with the AFS portfolio at September 30, 2024 and December 31, 2023.
−Removed: Accrued interest receivable on AFS debt securities totaled $ 14.1 million at September 30, 2024 and $ 9.6 million at December 31, 2023, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets.
+Added: There was no ACL associated with the AFS portfolio at March 31, 2025 and December 31, 2024.
+Added: Accrued interest receivable on AFS debt securities totaled $ 14.4 million at March 31, 2025 and $ 14.3 million at December 31, 2024, 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.
1 unchanged sentence
Debt Securities AFS:
−Removed: September 30, 2024
+Added: March 31, 2025
Treasury $ 274 $ 1 $ — $ 275
government agencies 50 — — 50
−Removed: government-sponsored entities 302 1 ( 1 ) 302
+Added: government-sponsored enterprises 303 — ( 1 ) 302
Residential MBS:
11 unchanged sentences
government agencies 53 — — 53
−Removed: government-sponsored entities 227 — ( 4 ) 223
+Added: government-sponsored enterprises 302 — ( 2 ) 300
Residential MBS:
7 unchanged sentences
The amortized cost and fair value of HTM debt securities are presented in the following table.
−Removed: The ACL for the HTM portfolio was $ 0.25 million and $ 0.28 million at September 30, 2024 and December 31, 2023, respectively.
−Removed: Accrued interest receivable on HTM debt securities totaled $ 13.0 million and $ 14.7 million at September 30, 2024 and December 31, 2023, respectively, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets.
+Added: The ACL for the HTM portfolio was $ 0.24 million and $ 0.25 million at March 31, 2025 and December 31, 2024, respectively.
+Added: Accrued interest receivable on HTM debt securities totaled $ 14.0 million and $ 14.6 million at March 31, 2025 and December 31, 2024, 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.
1 unchanged sentence
Debt Securities HTM:
−Removed: September 30, 2024
+Added: March 31, 2025
Treasury $ 1 $ — $ — $ 1
−Removed: government-sponsored entities 29 — — 29
+Added: government-sponsored enterprises 29 — — 29
Residential MBS:
9 unchanged sentences
December 31, 2024
−Removed: government agencies $ 1 $ — $ — $ 1
−Removed: government-sponsored entities 68 — — 68
+Added: Treasury $ 1 $ — $ — $ 1
+Added: government-sponsored enterprises 29 — — 29
Residential MBS:
6 unchanged sentences
Total debt securities HTM $ 3,979 $ 3 $ ( 338 ) $ 3,644
−Removed: There were no significant gross gains or gross losses realized on securities during the nine months ended September 30, 2024 or 2023.
−Removed: 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.
−Removed: Unrealized losses on the AFS and HTM portfolios are due to the increase in market interest rates with 85.3 % of these securities backed or sponsored by the U.S.
−Removed: government as of September 30, 2024.
−Removed: As of September 30, 2024, the amortized cost and fair value of debt securities, by contractual maturities, were as follows:
+Added: There were no significant gross gains or gross losses realized on investment securities during the three months ended March 31, 2025 or 2024.
+Added: Net unrealized losses on the AFS and HTM portfolios are primarily due to the increase in market interest rates since the time of purchase, with 85.8 % of these securities backed or sponsored by the U.S.
+Added: government as of March 31, 2025.
+Added: As of March 31, 2025, the amortized cost and fair value of debt securities, by contractual maturities, were as follows:
Available for Sale Held to Maturity
13 unchanged sentences
Periodic principal payments are received on residential MBS based on the payment patterns of the underlying collateral.
−Removed: Following is information relating to securities pledged:
−Removed: (dollars in millions) September 30,
+Added: Following is information relating to investment securities pledged:
+Added: (dollars in millions) March 31,
2025 December 31,
12 unchanged sentences
Debt Securities AFS
−Removed: September 30, 2024
+Added: March 31, 2025
Treasury 1 $ 25 $ — 2 $ 75 $ — 3 $ 100 $ —
government agencies 4 9 — 10 23 — 14 32 —
−Removed: government-sponsored entities — — — 7 126 ( 1 ) 7 126 ( 1 )
+Added: government-sponsored enterprises — — — 7 127 ( 1 ) 7 127 ( 1 )
Residential MBS:
17 unchanged sentences
government agencies 6 11 — 12 25 — 18 36 —
−Removed: government-sponsored entities 1 25 — 7 123 ( 4 ) 8 148 ( 4 )
+Added: government-sponsored enterprises 2 75 — 7 126 ( 2 ) 9 201 ( 2 )
Residential MBS:
6 unchanged sentences
Total 43 $ 1,104 $ ( 10 ) 213 $ 1,670 $ ( 148 ) 256 $ 2,774 $ ( 158 )
−Removed: We evaluated the AFS debt securities that were in an unrealized loss position at September 30, 2024.
+Added: We evaluated the AFS debt securities that were in an unrealized loss position at March 31, 2025.
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.
3 unchanged sentences
Management reviews the credit profile of each issuer on an annual basis, and more frequently as needed.
−Removed: 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.
−Removed: Our municipal bond portfolio, with a carrying amount of $ 1.0 billion as of September 30, 2024 is highly rated with an average rating of AA and over 99 % of the portfolio rated A or better.
−Removed: All of the securities in the municipal portfolio are general obligation bonds.
+Added: Based on the nature of the issuers and current conditions, we have determined that investment securities backed by the U.S.
+Added: Department of the Treasury, Fannie Mae, Freddie Mac, FHLB, Ginnie Mae, and the SBA have zero expected credit loss.
+Added: Our municipal bond portfolio, with a carrying amount of $ 1.0 billion as of March 31, 2025 is highly rated with an average rating of AA and 98 % of the portfolio is rated A or better.
+Added: All of the investment securities in the municipal portfolio are general obligation bonds.
Geographically, municipal bonds support our primary footprint as 59 % 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.
−Removed: In addition to the strong stand-alone ratings, 60 % 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:
2 unchanged sentences
• Moody’s U.S.
−Removed: Bond Defaults and Recoveries, 1970-2022 study.
+Added: Municipal Bond Default and Recovery Rates, 1970-2023.
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.
−Removed: Our corporate bond portfolio, with a carrying amount of $ 62.4 million as of September 30, 2024 primarily consists of subordinated debentures of banks within our footprint.
+Added: Our corporate bond portfolio, with a carrying amount of $ 57.0 million as of March 31, 2025 consists of debentures of banks within our footprint.
The average holding size of the securities in the corporate bond portfolio is $ 3.4 million.
5 unchanged sentences
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.
−Removed: For the year-to-date periods ending September 30, 2024 and 2023, we had no significant provision expense and no charge-offs or recoveries for the securities portfolio.
−Removed: The ACL on the HTM portfolio was $ 0.25 million, consisting of $ 0.06 million relating to the municipal bond portfolio and $ 0.19 million relating to other debt securities, as of September 30, 2024, and $ 0.06 million relating to the municipal bond portfolio and $ 0.22 million relating to other debt securities as of December 31, 2023.
−Removed: The AFS securities portfolios did no t have an ACL at September 30, 2024 or December 31, 2023 and there were no securities that were past due or on non-accrual at either date.
+Added: For the year-to-date periods ending March 31, 2025 and 2024, we had no significant provision expense and no charge-offs or recoveries for the investment securities portfolio.
+Added: The ACL on the HTM portfolio was $ 0.24 million, consisting of $ 0.07 million relating to the municipal bond portfolio and $ 0.17 million relating to other debt securities, as of March 31, 2025, and $ 0.07 million relating to the municipal bond portfolio and $ 0.18 million relating to other debt securities as of December 31, 2024.
+Added: The AFS securities portfolios did no t have an ACL at March 31, 2025 or December 31, 2024 and there were no investment securities that were past due or on non-accrual at either date.
LOANS AND LEASES
−Removed: Accrued interest receivable on loans and leases, which totaled $ 128.4 million at September 30, 2024 and $ 128.6 million at December 31, 2023, is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets for both periods and is not included in the following tables.
+Added: Accrued interest receivable on loans and leases, which totaled $ 128.4 million at both March 31, 2025 and December 31, 2024, 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:
−Removed: (in millions) September 30, 2024 December 31, 2023
+Added: (in millions) March 31, 2025 December 31, 2024
Commercial real estate $ 12,652 $ 12,705
9 unchanged sentences
Total loans and leases, net of unearned income $ 34,235 $ 33,939
−Removed: The remaining accretable discount included in the amortized cost of acquired loans was $ 32.9 million and $ 42.6 million at September 30, 2024 and December 31, 2023, respectively.
+Added: The remaining accretable discount included in the amortized cost of acquired loans was $ 29.7 million and $ 31.6 million at March 31, 2025 and December 31, 2024, 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:
7 unchanged sentences
• 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.
−Removed: During 2024, we sold $ 0.8 billion in indirect auto loans.
−Removed: We recognized a $ 9.0 million loss during the first nine months of 2024 related to the sales.
−Removed: The related servicing asset was not significant at September 30, 2024.
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.
7 unchanged sentences
The following table shows occupancy information relating to commercial real estate loans:
−Removed: (dollars in millions) September 30,
2025 December 31,
17 unchanged sentences
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:
−Removed: September 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total
−Removed: (in millions)
+Added: (in millions) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total
+Added: March 31, 2025
Commercial Real Estate:
21 unchanged sentences
Total commercial loans and leases 781 2,936 3,051 3,500 2,676 6,111 2,181 21,236
−Removed: September 30, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total
−Removed: (in millions)
+Added: (in millions) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total
+Added: March 31, 2025
Direct Installment:
21 unchanged sentences
Total charge-offs $ 0.1 $ 0.8 $ 0.6 $ 4.4 $ 4.9 $ 5.6 $ — $ 16.4
−Removed: December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total
−Removed: (in millions)
+Added: (in millions) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total
+Added: December 31, 2024
Commercial Real Estate:
21 unchanged sentences
Total commercial loans and leases 3,002 3,089 3,571 2,897 1,874 4,447 2,284 21,164
−Removed: December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total
−Removed: (in millions)
+Added: (in millions) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total
+Added: December 31, 2024
Direct Installment:
30 unchanged sentences
Leases Non-accrual with No ACL
−Removed: September 30, 2024
+Added: March 31, 2025
Commercial real estate $ 10 $ — $ 82 $ 92 $ 12,560 $ 12,652 $ 28
27 unchanged sentences
Following is a summary of non-performing assets:
−Removed: (dollars in millions) September 30,
+Added: (dollars in millions) March 31,
2025 December 31,
6 unchanged sentences
Non-performing assets plus 90 days or more past due / total loans and leases plus OREO
−Removed: 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, 2024 and $ 1.2 million at December 31, 2023.
−Removed: The recorded investment of residential-secured consumer OREO for which formal foreclosure proceedings are in process at September 30, 2024 and December 31, 2023 totaled $ 12.9 million and $ 9.4 million, respectively.
−Removed: Approximately $ 148.0 million of commercial loans are collateral dependent at September 30, 2024.
+Added: The carrying value of residential-secured consumer OREO held as a result of obtaining physical possession upon completion of a foreclosure or through completion of a deed in lieu of foreclosure amounted to $ 1.2 million at both March 31, 2025 and December 31, 2024.
+Added: The recorded investment of residential-secured consumer OREO for which formal foreclosure proceedings are in process at March 31, 2025 and December 31, 2024 totaled $ 14.9 million and $ 10.6 million, respectively.
+Added: Approximately $ 167.0 million of commercial loans are collateral dependent at March 31, 2025.
Repayment is expected to be substantially made through the operation or sale of the collateral on the loan.
3 unchanged sentences
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.
−Removed: Accrued interest receivable on loan modifications totaled $ 0.07 million and $ 0.08 million at September 30, 2024 and September 30, 2023, respectively, and is excluded from the amortized cost of loan modifications in the tables that follow.
+Added: Accrued interest receivable on loan modifications totaled $ 0.02 million and $ 0.01 million at March 31, 2025 and March 31, 2024, respectively, and is excluded from the amortized cost of loan modifications in the tables that follow.
The following table shows the amortized cost basis at the end of the reporting period of the loans modified during the period to borrowers experiencing financial difficulty, disaggregated by class of financing receivable, type of concession granted and the financial effect of the modifications made to borrowers experiencing financial difficulty:
(dollars in millions) Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect
−Removed: Three Months Ended September 30, 2024
+Added: Three Months Ended March 31, 2025
Term Extension
4 unchanged sentences
Term Extension and Rate Reduction
−Removed: Residential mortgages 0.1 — Multiple modifications were made with no material financial effect.
−Removed: Balloon Payment
−Removed: Commercial real estate 0.1 — Modifications were made with no material financial effect.
−Removed: Commercial real estate 0.5 — Reduction of cash flow due to lower payments.
+Added: Residential mortgages 1.3 0.02 The term was extended, with a weighted average yield reductions of 100 basis points to 450 basis points with extensions up to 27 years.
+Added: Commercial and industrial 0.1 — Multiple modifications were made with no material financial effect.
Total Outstanding Modified $ 6.0
(dollars in millions) Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect
−Removed: Nine Months Ended September 30, 2024
+Added: Three Months Ended March 31, 2024
Term Extension
−Removed: Commercial real estate $ 0.3 — % The modified loans had an average increase in term of 7 months, extending the maturity date.
−Removed: Commercial and industrial 0.1 — The modified loans had an average increase in term of 3 months, extending the maturity date.
Direct installment $ 0.2 0.01 % The modified loans had an average increase in term of 114 months, extending the maturity date.
4 unchanged sentences
Term Extension and Rate Reduction
+Added: 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.
−Removed: Consumer lines of credit 0.3 0.02 Multiple modifications were made with no material financial effect.
Balloon Payment
−Removed: Commercial real estate 0.7 0.01 Modifications were made with no material financial effect.
+Added: Commercial real estate 0.6 — Multiple modifications were made with no material financial effect.
Commercial real estate 4.1 0.03 3 to 12 month payment deferrals with no income being earned on these loans
1 unchanged sentence
Total Outstanding Modified $ 8.3
−Removed: (dollars in millions) Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect
−Removed: Three Months Ended September 30, 2023
−Removed: Term Extension
−Removed: Commercial real estate $ 0.8 0.01 % The modified loans had an average increase in term of 46 months, extending the maturity date.
−Removed: Commercial and industrial 0.7 0.01 The modified loans had an average increase in term of 25 months, extending the maturity date.
−Removed: Direct installment 0.4 0.01 The modified loans had an average increase in term of 74 months, extending the maturity date.
−Removed: Residential mortgages 1.1 0.02 The modified loans had an average increase in term of 42 months, extending the maturity date.
−Removed: Consumer lines of credit 0.2 0.02 The lines were termed to an average of 243 months.
−Removed: Term Extension and Rate Reduction
−Removed: Commercial and industrial 0.1 — The term was extended and the rate was reduced, lowering the monthly payment.
−Removed: Direct installment 0.1 — The term was extended and the rate was reduced, lowering the monthly payment.
−Removed: Residential mortgages 0.1 — The term was extended and the rate was reduced, lowering the monthly payment.
−Removed: Commercial real estate 0.2 — Multiple modifications were made with no material financial effect.
−Removed: Direct installment 0.1 — Multiple modifications were made with no material financial effect.
−Removed: Consumer lines of credit 0.4 0.03 Multiple modifications were made with no material financial effect.
−Removed: Total Outstanding Modified $ 4.2
−Removed: (dollars in millions) Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect
−Removed: Nine Months Ended September 30, 2023
−Removed: Term Extension
−Removed: Commercial real estate $ 12.3 0.10 % The modified loans had an average increase in term of 24 months, extending the maturity date.
−Removed: Commercial and industrial 3.0 0.04 The modified loans had an average increase in term of 16 months, extending the maturity date.
−Removed: Direct installment 0.8 0.03 The modified loans had an average increase in term of 99 months, extending the maturity date.
−Removed: Residential mortgages 2.7 0.04 The modified loans had an average increase in term of 105 months, extending the maturity date.
−Removed: Consumer lines of credit 0.4 0.03 The repayment on the loans modified was extended, lowering the monthly repayment.
−Removed: Term Extension and Rate Reduction
−Removed: Commercial and industrial 0.3 — The term was extended, with a weighted average yield reduction of 462 basis points.
−Removed: Direct installment 0.4 0.01 The modified loans had an average increase in term of 330 months, extending the maturity date.
−Removed: Residential mortgages 0.8 0.01 The term was extended, with a weighted average yield reduction of 267 basis points.
−Removed: Consumer lines of credit 0.6 0.05 The term was extended, with a weighted average yield reduction of 321 basis points.
−Removed: Commercial real estate 0.5 — Multiple modifications were made with no material financial effect.
−Removed: Direct installment 0.1 — Multiple modifications were made with no material financial effect.
−Removed: Residential mortgages 0.1 — Multiple modifications were made with no material financial effect.
−Removed: Consumer lines of credit 0.6 0.05 Multiple modifications were made with no material financial effect.
−Removed: Total Outstanding Modified $ 22.6
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.
−Removed: There were no additional funds committed to borrowers whose loans were modified during the first nine months of 2024.
+Added: There were no additional funds committed to borrowers whose loans were modified during the first three months of 2025.
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.
−Removed: There were $ 0.4 million and $ 5.3 million in specific reserves for commercial loans modified at September 30, 2024 and December 31, 2023, respectively, and pooled reserves for individual loans of $ 1.5 million and $ 2.0 million for those same periods, respectively, based on loan segment LGD.
+Added: There were $ 7.7 million and $ 8.1 million in specific reserves for commercial loans modified at March 31, 2025 and December 31, 2024, respectively, and pooled reserves for individual loans of $ 2.4 million and $ 1.8 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.
−Removed: Our ACL included pooled reserves for these classes of loans of $ 3.9 million and $ 3.8 million as of September 30, 2024 and December 31, 2023, respectively.
+Added: Our ACL included pooled reserves for these classes of loans of $ 3.7 million and $ 3.4 million as of March 31, 2025 and December 31, 2024, respectively.
Upon default of an individual loan, our charge-off policy is followed for that class of loan.
3 unchanged sentences
(in millions) Term Extension Term Extension and Rate Reduction Balloon Payment Other Total Outstanding Modified
−Removed: Three Months Ended September 30, 2024
−Removed: Commercial real estate $ — $ — $ 0.1 $ — $ 0.1
−Removed: Commercial and industrial — — — — —
−Removed: Total commercial loans and leases — — 0.1 — 0.1
−Removed: Direct installment 0.4 — — — 0.4
−Removed: Residential mortgages 0.3 0.1 — — 0.4
−Removed: Total consumer loans 0.7 0.1 — — 0.8
−Removed: Total $ 0.7 $ 0.1 $ 0.1 $ — $ 0.9
−Removed: Nine Months Ended September 30, 2024
−Removed: Commercial real estate $ 0.7 $ — $ 0.7 $ 8.9 $ 10.3
−Removed: Commercial and industrial 20.2 0.2 — 1.6 22.0
−Removed: Total commercial loans and leases 20.9 0.2 0.7 10.5 32.3
−Removed: Direct installment 0.5 — — — 0.5
−Removed: Residential mortgages 1.9 0.1 — — 2.0
−Removed: Total consumer loans 2.4 0.1 — — 2.5
−Removed: Total $ 23.3 $ 0.3 $ 0.7 $ 10.5 $ 34.8
−Removed: (in millions) Term Extension Term Extension and Rate Reduction Other Total Outstanding Modified
−Removed: Three Months Ended September 30, 2023
+Added: Three Months Ended March 31, 2025
Commercial real estate $ 1.0 $ — $ 0.7 $ 6.4 $ 8.1
5 unchanged sentences
Total $ 25.7 $ 16.3 $ 0.7 $ 12.2 $ 54.9
−Removed: Nine Months Ended September 30, 2023
+Added: (in millions) Term Extension Term Extension and Rate Reduction Balloon Payment Other Total Outstanding Modified
+Added: Three Months Ended March 31, 2024
Commercial real estate $ 0.3 $ 0.9 $ 0.6 $ 8.7 $ 10.5
1 unchanged sentence
Total commercial loans and leases 21.8 1.2 0.6 9.3 32.9
−Removed: Direct installment 0.1 — — 0.1
Residential mortgages 0.2 — — — 0.2
−Removed: Consumer lines of credit 0.1 — — 0.1
Total consumer loans 0.2 — — — 0.2
4 unchanged sentences
(in millions) Current 30-89 Days Past Due 90+ Days Past Due
−Removed: September 30, 2024
+Added: March 31, 2025
Commercial real estate $ 20.2 $ — $ —
7 unchanged sentences
(in millions) Current 30-89 Days Past Due 90+ Days Past Due
−Removed: September 30, 2023
+Added: March 31, 2024
Commercial real estate $ 14.9 $ — $ —
15 unchanged sentences
Offs) Recoveries Provision for Credit Losses Balance at
−Removed: Three Months Ended September 30, 2024
−Removed: Commercial real estate $ 157.7 $ ( 13.8 ) $ 0.9 $ ( 12.9 ) $ 40.1 $ 184.9
−Removed: Commercial and industrial 93.5 ( 10.1 ) 6.5 ( 3.6 ) ( 11.5 ) 78.4
−Removed: Commercial leases 22.9 ( 0.1 ) — ( 0.1 ) ( 1.2 ) 21.6
−Removed: Other 4.0 ( 1.2 ) 0.2 ( 1.0 ) 1.0 4.0
−Removed: Total commercial loans and leases 278.1 ( 25.2 ) 7.6 ( 17.6 ) 28.4 288.9
−Removed: Direct installment 30.9 ( 0.2 ) 0.2 — ( 1.7 ) 29.2
−Removed: Residential mortgages 88.2 ( 0.1 ) 0.1 — ( 4.0 ) 84.2
−Removed: Indirect installment 13.1 ( 4.2 ) 0.6 ( 3.6 ) ( 0.5 ) 9.0
−Removed: Consumer lines of credit 8.5 ( 0.4 ) 0.1 ( 0.3 ) 0.7 8.9
−Removed: Total consumer loans 140.7 ( 4.9 ) 1.0 ( 3.9 ) ( 5.5 ) 131.3
−Removed: Total allowance for credit losses on loans and leases 418.8 ( 30.1 ) 8.6 ( 21.5 ) 22.9 420.2
−Removed: Allowance for unfunded loan commitments 21.8 — — — 0.6 22.4
−Removed: Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments $ 440.6 $ ( 30.1 ) $ 8.6 $ ( 21.5 ) $ 23.5 $ 442.6
−Removed: Nine Months Ended September 30, 2024
+Added: Three Months Ended March 31, 2025
Commercial real estate $ 166.9 $ ( 7.6 ) $ 0.4 $ ( 7.2 ) $ 13.7 $ 173.4
16 unchanged sentences
Losses Balance at
−Removed: Three Months Ended September 30, 2023
−Removed: Commercial real estate $ 154.2 $ ( 0.6 ) $ 0.9 $ 0.3 $ 0.5 $ 155.0
−Removed: Commercial and industrial 114.3 ( 37.2 ) 1.4 ( 35.8 ) 17.1 95.6
−Removed: Commercial leases 15.2 — — — 2.9 18.1
−Removed: Other 3.8 ( 0.9 ) 0.2 ( 0.7 ) 1.1 4.2
−Removed: Total commercial loans and leases 287.5 ( 38.7 ) 2.5 ( 36.2 ) 21.6 272.9
−Removed: Direct installment 35.6 ( 0.1 ) 0.2 0.1 ( 1.0 ) 34.7
−Removed: Residential mortgages 63.4 ( 0.1 ) 0.1 — 4.0 67.4
−Removed: Indirect installment 16.6 ( 2.1 ) 0.5 ( 1.6 ) 1.1 16.1
−Removed: Consumer lines of credit 9.6 ( 0.2 ) 0.2 — ( 0.1 ) 9.5
−Removed: Total consumer loans 125.2 ( 2.5 ) 1.0 ( 1.5 ) 4.0 127.7
−Removed: Total allowance for credit losses on loans and leases 412.7 ( 41.2 ) 3.5 ( 37.7 ) 25.6 400.6
−Removed: Allowance for unfunded loan commitments 21.0 — — — 0.3 21.3
−Removed: Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments $ 433.7 $ ( 41.2 ) $ 3.5 $ ( 37.7 ) $ 25.9 $ 421.9
−Removed: Nine Months Ended September 30, 2023
+Added: Three Months Ended March 31, 2024
Commercial real estate $ 166.6 $ ( 7.1 ) $ 0.4 $ ( 6.7 ) $ 2.0 $ 161.9
13 unchanged sentences
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
−Removed: 2024 2023 2024 2023
(in millions)
9 unchanged sentences
• the historical through-the-cycle mean was calculated using an expanded period to include a prior recessionary period.
−Removed: At September 30, 2024 and December 31, 2023, we utilized a third-party consensus macroeconomic forecast reflecting the current and projected macroeconomic environment.
−Removed: For our ACL calculation at September 30, 2024, the macroeconomic variables that we utilized included, but were not limited to:
+Added: At March 31, 2025 and December 31, 2024, we utilized a third-party consensus macroeconomic forecast reflecting the current and projected macroeconomic environment.
+Added: For our ACL calculation at March 31, 2025, the macroeconomic variables that we utilized included, but were not limited to:
(i) the purchase only Housing Price Index, which increases 7.0 % over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which increases 4.9 % over our R&S forecast period, (iii) S&P Volatility, which increases 25.1 % in 2025 and 0 % in 2026 and (iv) personal and business bankruptcies, which increase steadily over the R&S forecast period but average below the historical through the cycle period.
Macroeconomic variables that we utilized for our ACL calculation as of December 31, 2024 included, but were not limited to:
−Removed: (i) the purchase only Housing Price Index, which increases 5.3 % over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which increases 0.1 % over our R&S forecast period, (iii) S&P Volatility, which decreases 4.0 % in 2024 and 2.9 % in 2025 and (iv) bankruptcies, which increase steadily over the R&S forecast period but average below the historical through the cycle period.
−Removed: The ACL on loans and leases of $ 420.2 million at September 30, 2024 increased $ 14.6 million, or 3.6 %, from December 31, 2023.
−Removed: Our ending ACL coverage ratio at September 30, 2024 was 1.25 %, compared to 1.25 % at December 31, 2023.
−Removed: Total provision for credit losses for the three months ended September 30, 2024 was $ 23.5 million compared to $ 25.9 million for the same period of 2023, which included an $ 18.8 million specific reserve established for a single $ 31.9 million commercial and industrial loan downgraded to non-performing status during the second quarter of 2023.
−Removed: The third quarter of 2024 reflected net charge-offs of $ 21.5 million, or 0.25 % annualized of average total loans, compared to $ 37.7 million, or 0.47 % annualized, in the third quarter of 2023.
−Removed: Total provision for credit losses for the nine months ended September 30, 2024 was $ 57.6 million compared to $ 58.5 million, which included $ 31.9 million in provision for the previously disclosed isolated commercial loan charged off due to indications of alleged fraud and subsequent bankruptcy filings by our borrower and its primary supplier for the same period of 2023.
−Removed: Net charge-offs were $ 42.1 million, or 0.17 % annualized of average total loans, during the nine months ended September 30, 2024, compared to $ 59.6 million, or 0.26 % annualized, for the same period of 2023.
−Removed: The nine months ended September 30, 2023 was impacted by the previously disclosed isolated $ 31.9 million commercial loan .
+Added: (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 3.9 % over our R&S forecast period, (iii) S&P Volatility, which increases 34.9 % in 2025 and 2.5 % in 2026 and (iv) personal and business bankruptcies, which increase steadily over the R&S forecast period but average below the historical through the cycle period.
+Added: The ACL on loans and leases of $ 428.9 million at March 31, 2025 increased $ 6.1 million, or 1.4 %, from December 31, 2024.
+Added: Our ending ACL coverage ratio at March 31, 2025 was 1.25 %, unchanged from December 31, 2024.
+Added: Total provision for credit losses for the three months ended March 31, 2025 was $ 17.5 million, compared to $ 13.9 million for the same period of 2024.
+Added: The first quarter of 2025 reflected net charge-offs of $ 12.5 million, or 0.15 % annualized of average total loans, compared to $ 12.8 million, or 0.16 % annualized, in the first quarter of 2024.
LOAN SERVICING
2 unchanged sentences
The unpaid principal balance of mortgage loans serviced for others is listed below:
−Removed: (in millions) September 30,
+Added: (in millions) March 31,
2025 December 31,
2 unchanged sentences
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
(in millions) 2025 2024
5 unchanged sentences
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
(in millions) 2025 2024
7 unchanged sentences
Fair value, end of period 84.8 75.2
−Removed: There was a $ 2.8 million valuation allowance for MSRs at September 30, 2024 and $ 0.2 million as of December 31, 2023.
+Added: There was a $ 0.2 million valuation allowance for MSRs at March 31, 2025 and $ 0.1 million as of December 31, 2024.
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.
3 unchanged sentences
Following is a summary of the sensitivity of the fair value of MSRs to changes in key assumptions:
−Removed: (dollars in millions) September 30,
+Added: (dollars in millions) March 31,
2025 December 31,
17 unchanged sentences
The exercise of lease renewal options is at our sole discretion.
−Removed: As of September 30, 2024, we had operating lease right-of-use assets and operating lease liabilities of $ 199.0 million and $ 240.1 million, respectively.
−Removed: We have finance lease right-of-use assets and finance lease liabilities of $ 34.1 million and $ 35.9 million, respectively.
+Added: As of March 31, 2025, we had operating lease right-of-use assets and operating lease liabilities of $ 198.5 million and $ 240.5 million, respectively, including $ 72.8 million in operating right-of-use assets and $ 104.3 million in operating lease liabilities with a related party.
+Added: As of March 31, 2025, we had finance lease right-of-use assets and finance lease liabilities of $ 34.0 million and $ 36.5 million, respectively.
Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.
−Removed: As of September 30, 2024, we have certain operating lease agreements, primarily for administrative office space, that have not yet commenced.
+Added: As of March 31, 2025, we have certain operating lease agreements, primarily for administrative office space, that are expected to commence in 2025 with lease terms of up to 10 years.
At commencement, it is expected that these leases will add approximately $ 1.9 million in right-of-use assets and $ 1.9 million in other liabilities.
−Removed: These operating leases are currently expected to commence in 2024 and 2025 with lease terms of up to 20 years.
−Removed: These operating leases include the lease, with a related party, of the future new FNB headquarters building in Pittsburgh, Pennsylvania.
−Removed: Beginning in 2023, several floors of the FNB headquarters building have been made available to FNB for the purpose of constructing our office spaces, and we commenced the lease of those floors.
+Added: In late 2024, the majority of FNB's Pittsburgh-based employees moved into the new headquarters building, consolidating several offices, subsidiaries and support departments under one roof to create opportunities for continued efficiency, collaboration and productivity enhancements.
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.
1 unchanged sentence
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
(dollars in millions) 2025 2024
4 unchanged sentences
Other information related to leases is as follows:
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended
(dollars in millions) 2025 2024
13 unchanged sentences
(in millions) Operating Leases Finance Leases Total Leases
−Removed: September 30, 2024
+Added: March 31, 2025
0 - 12 months $ 35 $ 2 $ 37
13 unchanged sentences
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.
+Added: Additionally, we have an operating lease with a related party with a maximum exposure to loss of $ 72.8 million.
+Added: For further information about this unconsolidated VIE, please see Note 7, "Leases."
(in millions) Total Assets Total Liabilities Maximum Exposure to Loss
−Removed: September 30, 2024
+Added: March 31, 2025
Trust preferred securities (1)
20 unchanged sentences
Affordable Housing, Historic and New Market Tax Credit Partnerships
−Removed: 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.
−Removed: The purpose of many of these investments is to support initiatives associated with the Community Reinvestment
−Removed: Act while earning a satisfactory return.
+Added: 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,
+Added: respectively.
+Added: 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.
3 unchanged sentences
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.
−Removed: We apply the proportional amortization method of accounting for our investments in LIHTC partnerships.
−Removed: 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.
−Removed: 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.
−Removed: Prior to the adoption of ASU 2023-02, we applied the equity method of accounting to the investments in HTC and NMTC partnerships.
−Removed: The adoption of ASU 2023-02 did not have a material impact on our consolidated financial statements.
+Added: We apply the proportional amortization method of accounting for our investments in LIHTC, HTC and NMTC partnerships.
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:
−Removed: (in millions) September 30,
+Added: (in millions) March 31,
2025 December 31,
1 unchanged sentence
Unfunded tax credit investments 68 68
−Removed: 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.
−Removed: 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:
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
(in millions) 2025 2024
7 unchanged sentences
Following is a summary of short-term borrowings:
−Removed: (in millions) September 30,
+Added: (in millions) March 31,
2025 December 31,
7 unchanged sentences
Securities are pledged to these customers in an amount at least equal to the outstanding balance.
−Removed: Of the total short-term FHLB advances, $ 480.0 million, or 51.6 %, had overnight maturities as of September 30, 2024, compared to $ 450.0 million, or 23.7 %, as of December 31, 2023.
−Removed: At September 30, 2024, $ 100.0 million, or 10.8 %, of the short-term FHLB advances was swapped to fixed rate with a 2024 maturity, compared to $ 400.0 million, or 21.1 %, as of December 31, 2023.
+Added: Of the total short-term FHLB advances, $ 525.0 million, or 51.2 %, had overnight maturities as of March 31, 2025, compared to $ 335.0 million, or 57.3 %, as of December 31, 2024.
+Added: At March 31, 2025 and December 31, 2024, none of the short-term FHLB advances were swapped to fixed rates.
Federal funds purchased are overnight funds borrowed from other financial institutions.
2 unchanged sentences
Following is a summary of long-term borrowings:
−Removed: (in millions) September 30,
+Added: (in millions) March 31,
2025 December 31,
5 unchanged sentences
Total long-term borrowings $ 2,514 $ 3,012
−Removed: Our banking affiliate has available credit with the FHLB of $ 11.9 billion, of which $ 2.7 billion was utilized and included in short-term and long-term borrowings and $ 750.0 million was utilized for a letter of credit for pledging of public funds as of September 30, 2024.
−Removed: These advances are secured by loans collateralized by residential mortgages, home equity lines of credit, commercial real estate and FHLB stock.
+Added: Our banking affiliate has available credit with the FHLB of $ 12.2 billion, of which $ 2.3 billion was utilized and included in short-term and long-term borrowings and $ 650.0 million was utilized for letters of credit for pledging of public funds as of March 31, 2025.
+Added: These advances are secured by $ 17.0 billion of 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 2025 while the long-term borrowings are scheduled to mature periodically through 2028.
−Removed: Effective interest rates paid on fixed rate long-term FHLB advances ranged from 3.69 % to 4.88 % for the three months ended September 30, 2024 and 4.23 % and 4.88 % for the year ended December 31, 2023.
−Removed: The effective interest rate paid on variable rate long-term FHLB advances was Overnight SOFR plus an average spread of 34.1 basis points for the three months ended September 30, 2024.
−Removed: There were no variable rate advances for the year ended December 31, 2023.
−Removed: The following table provides information relating to our senior notes and other subordinated debt as of September 30, 2024.
+Added: Effective interest rates paid on long-term fixed rate FHLB advances held during 2025 ranged from 3.69 % to 4.69 % for the three months ended March 31, 2025 and 3.69 % and 4.88 % for the year ended December 31, 2024.
+Added: The effective interest rate paid on variable rate long-term FHLB advances was Overnight SOFR plus an average spread of 35 basis points for the three months ended March 31, 2025 compared to an average spread of 34 basis points for the year ended December 31, 2024.
+Added: The following table provides information relating to our senior notes and other subordinated debt as of March 31, 2025.
The subordinated notes are eligible for treatment as tier 2 capital for regulatory capital purposes.
4 unchanged sentences
$ 350 $ 347 $ 350 8/25/2025 5.150 %
+Added: 5.722 % Fixed-To-Floating Rate Senior Notes due December 11, 2030 (1)
+Added: 500 497 497 12/11/2030 5.722 %
Total senior notes 850 844 847
10 unchanged sentences
Total $ 1,120 $ 1,110 $ 1,115
−Removed: (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.
+Added: (1) Fixed rate until December 11, 2029, at which time it converts to a floating rate determined by the Compounded SOFR plus 193 basis points.
+Added: (2) Floating rate effective February 14, 2024, determined by the Benchmark Replacement (three-month Chicago Mercantile Exchange (CME) term SOFR plus a tenor spread adjustment of 26 basis points) plus 240 basis points.
(3) 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.
6 unchanged sentences
We record the distributions on the junior subordinated debt issued to the Trusts as interest expense.
−Removed: The following table provides information relating to the Trusts as of September 30, 2024:
+Added: The following table provides information relating to the Trusts as of March 31, 2025:
(dollars in millions) Trust
10 unchanged sentences
Other Credit Availability
−Removed: Our banking affiliate has additional unused other wholesale credit availability of $ 7.4 billion as of September 30, 2024.
+Added: Our banking affiliate has additional unused other wholesale credit availability of $ 6.3 billion as of March 31, 2025.
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
6 unchanged sentences
Credit risk is included in the determination of the estimated fair value of derivatives.
−Removed: Derivative assets are reported in the Consolidated Balance Sheets in other assets and derivative liabilities are reported in other liabilities.
+Added: Derivative assets are reported in the Consolidated Balance Sheets in other assets while derivative liabilities are reported in other liabilities.
Cash flow activity relating to derivative assets and derivative liabilities is reported in the other, net line in operating activities on the Consolidated Statements of Cash Flows.
1 unchanged sentence
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:
−Removed: September 30, 2024 December 31, 2023
+Added: March 31, 2025 December 31, 2024
Notional Fair Value Notional Fair Value
−Removed: (in millions) Amount Asset Liability Amount Asset Liability
+Added: (in millions) Amount Assets Liabilities Amount Assets Liabilities
Gross Derivatives
13 unchanged sentences
The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument.
−Removed: We adopted Reference Rate Reform (RRR) on October 1, 2020, and the guidance will be followed until the Update terminates on December 31, 2024.
−Removed: 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.
−Removed: dollar cleared interest rate swaps to better reflect prices obtainable in the markets in which we transact.
−Removed: Certain of these valuation methodology changes were applied to eligible hedging relationships.
−Removed: Accordingly, we have updated our hedge documentation to reflect the election of certain expedients and exceptions related to our cash flow hedging programs.
−Removed: 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
2 unchanged sentences
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.
−Removed: 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.
+Added: The derivative’s gain or loss,
+Added: 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:
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
−Removed: Nine Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended
+Added: March 31, Three Months Ended
(in millions) 2025 2024 2025 2024
2 unchanged sentences
The following table represents gains (losses) recognized in the Consolidated Statements of Income on cash flow hedging relationships:
−Removed: Nine months ended September 30,
+Added: Three months ended March 31,
(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 ( 8 ) — ( 12 ) 4
−Removed: As of September 30, 2024, the maximum length of time over which forecasted interest cash flows are hedged is 1.6 years.
−Removed: In the twelve months that follow September 30, 2024, we expect to reclassify from the amount currently reported in AOCI net derivative losses of $ 20.8 million ($ 16.1 million net of tax), in association with interest on the hedged loans and FHLB advances.
−Removed: 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, 2024.
+Added: As of March 31, 2025, the maximum length of time over which forecasted interest cash flows are hedged is 4.8 years.
+Added: In the twelve months that follow March 31, 2025, we expect to reclassify from the amount currently reported in AOCI net derivative losses of $ 8.1 million ($ 6.3 million net of tax), in association with interest on the hedged loans.
+Added: 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, 2025.
There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness related to these cash flow hedges.
−Removed: Also, during the nine months ended September 30, 2024 and 2023, there were no gains or losses from cash flow hedge derivatives reclassified to earnings because it became probable that the original forecasted transactions would not occur.
+Added: Also, during the three months ended March 31, 2025 and 2024, 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.
−Removed: Risk participation agreements sold with notional amounts totaling $ 619.6 million as of September 30, 2024 have remaining terms ranging from one month to seventeen years .
−Removed: 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 September 30, 2024 and December 31, 2023.
−Removed: The fair values of risk participation agreements purchased and sold were $ 0.2 million and $ 0.1 million, respectively, at September 30, 2024 and $ 0.2 million and $ 0.1 million, respectively at December 31, 2023.
+Added: Risk participation agreements sold with notional amounts totaling $ 577 million as of March 31, 2025 have remaining terms ranging from five months to 16 years.
+Added: 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 at both March 31, 2025 and December 31, 2024.
+Added: The fair values of risk participation agreements purchased and sold were $ 0.1 million and $ 0.1 million, respectively, at March 31, 2025 and $ 0.1 million and $ 0 , respectively, at December 31, 2024.
The following table presents the effect of certain derivative financial instruments on the Consolidated Statements of Income:
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended
(in millions) Consolidated Statements of Income Location 2025 2024
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.
−Removed: 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 no thing as of September 30, 2024 or December 31, 2023, in excess of amounts previously posted as collateral with the respective counterparty.
+Added: 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 no thing as of March 31, 2025 and $ 0.2 million as of December 31, 2024, 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:
−Removed: Amount Not Offset in the
−Removed: Consolidated Balance Sheets
−Removed: (in millions) Net Amount
+Added: Swap derivative transactions with customers are generally secured by rights to non-financial collateral, such as real and personal property, which is not shown in the table below.
+Added: Gross Amounts Not Offset in the Consolidated Balance Sheets
+Added: (in millions) Gross Amount Recognized Gross Amount Offset in the Consolidated Balance Sheets Net Amount
the Consolidated Balance
Sheets Financial
−Removed: Instruments Cash
−Removed: Collateral Net
−Removed: September 30, 2024
+Added: Instruments Available for Offset Collateral Received/Pledged Net
+Added: March 31, 2025
Derivative Assets
−Removed: Interest rate contracts:
−Removed: Designated $ 2 $ — $ 2 $ —
−Removed: Not designated 54 — 54 —
+Added: Subject to master netting arrangement $ 74 $ — $ 74 $ 33 $ 41 $ —
+Added: Not subject to master netting arrangement 37 — 37
Total $ 111 $ — $ 111
Derivative Liabilities
−Removed: Interest rate contracts:
−Removed: Not designated $ 62 $ — $ 62 $ —
+Added: Subject to master netting arrangement $ 37 $ — $ 37 $ 33 $ 4 $ —
+Added: Not subject to master netting arrangement 218 — 218
Total $ 255 $ — $ 255
1 unchanged sentence
Derivative Assets
−Removed: Interest rate contracts:
−Removed: Designated $ 1 $ — $ 1 $ —
−Removed: Not designated 74 — 74 —
+Added: Subject to master netting arrangement $ 96 $ — $ 96 $ 16 $ 80 $ —
+Added: Not subject to master netting arrangement 16 — 16
Total $ 112 $ — $ 112
Derivative Liabilities
−Removed: Interest rate contracts:
−Removed: Not designated $ 35 $ — $ 35 $ —
+Added: Subject to master netting arrangement $ 22 $ — $ 22 $ 16 $ 6 $ —
+Added: Not subject to master netting arrangement 287 — 287
Total $ 309 $ — $ 309
5 unchanged sentences
Following is a summary of off-balance sheet credit risk information:
−Removed: (in millions) September 30,
+Added: (in millions) March 31,
2025 December 31,
1 unchanged sentence
Standby letters of credit 291 271
−Removed: At September 30, 2024, funding of 79.5 % of the commitments to extend credit was dependent on the financial condition of the customer.
+Added: At March 31, 2025, funding of 82.1 % 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.
4 unchanged sentences
The credit risk involved in issuing letters of credit is actively monitored through review of the historical performance of our portfolios.
−Removed: Our AULC for commitments that are not unconditionally cancellable, which is included in other liabilities on the Consolidated Balance Sheets, was $ 22.4 million at September 30, 2024 and $ 21.5 million at December 31, 2023.
+Added: Our AULC for commitments that are not unconditionally cancellable, which is included in other liabilities on the Consolidated Balance Sheets, was $ 20.3 million at March 31, 2025 and $ 21.4 million at December 31, 2024.
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.
19 unchanged sentences
This subsidy amount is part of our existing, previously announced commitment to underserved communities, including the Winston-Salem and Charlotte markets.
−Removed: 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.
+Added: Importantly, 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.
STOCK INCENTIVE PLANS
Restricted Stock
−Removed: We issue restricted stock awards to key employees under our Incentive Compensation Plan (Plan).
+Added: We issue restricted stock unit 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.
2 unchanged sentences
The assumptions used for this valuation include stock price volatility, risk-free interest rate and dividend yield.
−Removed: We granted 1,271,502 and 1,426,146 restricted stock units during the nine months ended September 30, 2024 and 2023, respectively, including 334,082 and 290,764 performance-based restricted stock units during those same periods, respectively.
−Removed: We have shareholder approval under the Plan to issue up to 14,000,000 shares of common stock, including 8,000,000 shares registered during the second quarter of 2024.
−Removed: As of September 30, 2024, we had 9,077,587 remaining shares available for awards under the Plan.
+Added: We granted 518,654 and 546,838 restricted stock units during the three months ended March 31, 2025 and 2024, respectively, including 311,194 and 328,104 performance-based restricted stock units during those same periods, respectively.
+Added: We have shareholder approval under the Plan to issue up to 14,000,000 shares of common stock.
+Added: As of March 31, 2025, we had 8,304,879 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.
1 unchanged sentence
The following table summarizes the activity relating to restricted stock units during the periods indicated:
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Units Weighted
7 unchanged sentences
The following table provides certain information related to restricted stock units:
−Removed: (in millions) Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended
+Added: (in millions) 2025 2024
Stock-based compensation expense $ 10 $ 9
1 unchanged sentence
Fair value of units vested 12 11
−Removed: As of September 30, 2024, there was $ 12.9 million of unrecognized compensation cost related to unvested restricted stock units.
−Removed: The components of the restricted stock units as of September 30, 2024 are as follows:
+Added: As of March 31, 2025, there was $ 8.2 million of unrecognized compensation cost related to unvested restricted stock units.
+Added: The components of the restricted stock units as of March 31, 2025 are as follows:
(dollars in millions) Service-
7 unchanged sentences
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
(dollars in millions) 2025 2024
10 unchanged sentences
Effective tax rate 20.9 21.5
−Removed: Income tax expense was higher for the three and nine months ended September 30, 2024 driven by a renewable energy investment tax credit recognized as part of a solar project financing transaction that closed in September 2023.
−Removed: The increase was also attributable, to a lesser extent from lower stock compensation vesting deductions, higher disallowance of FDIC
−Removed: premium deductions and higher levels of proportional amortization for certain tax credit investments resulting from the adoption of FASB ASU 2023-02 on January 1, 2024.
−Removed: The higher effective tax rate for the three and nine months ended September 30, 2024 compared to 2023 was primarily due to the renewable energy investment tax credits as part of a solar project financing transaction that closed in September 2023.
+Added: Income tax expense was lower for the three months ended March 31, 2025 primarily due to lower pre-tax earnings.
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.
−Removed: Net deferred tax assets were $ 80.5 million and $ 120.8 million at September 30, 2024 and December 31, 2023, respectively.
+Added: Net deferred tax assets were $ 34.8 million and $ 57.9 million at March 31, 2025 and December 31, 2024, respectively.
OTHER COMPREHENSIVE INCOME (LOSS)
7 unchanged sentences
Obligations Total
−Removed: Nine Months Ended September 30, 2024
+Added: Three Months Ended March 31, 2025
Balance at beginning of period $ ( 119 ) $ ( 15 ) $ ( 35 ) $ ( 169 )
−Removed: Other comprehensive (loss) income before reclassifications 62 ( 6 ) 1 57
+Added: Other comprehensive income (loss) before reclassifications 33 8 1 42
Amounts reclassified from AOCI — 6 — 6
−Removed: Net current period other comprehensive income 62 18 1 81
+Added: Net current period other comprehensive income (loss) 33 14 1 48
Balance at end of period $ ( 86 ) $ ( 1 ) $ ( 34 ) $ ( 121 )
2 unchanged sentences
EARNINGS PER COMMON SHARE
−Removed: 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.
−Removed: 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.
+Added: Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding net of unvested shares of restricted stock.
+Added: Diluted earnings per common share is calculated by dividing net income available to common shareholders 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.
1 unchanged sentence
Three Months Ended
−Removed: September 30, Nine Months Ended
−Removed: September 30,
( dollars in millions, except per share data)
−Removed: 2024 2023 2024 2023
Net income $ 117 $ 122
Preferred stock dividends — 6
−Removed: Net income available to common stockholders $ 110 $ 143 $ 349 $ 428
+Added: Net income available to common shareholders $ 117 $ 116
Basic weighted average common shares outstanding 361,725,530 361,246,402
4 unchanged sentences
Diluted $ 0.32 $ 0.32
−Removed: There were no anti-dilutive shares for the nine months ended September 30, 2024 and 2023.
+Added: There were no anti-dilutive shares for the three months ended March 31, 2025 and 2024.
CASH FLOW INFORMATION
Following is a summary of supplemental cash flow information:
−Removed: Nine Months Ended
−Removed: September 30,
+Added: Three Months Ended
(in millions) 2025 2024
Interest paid on deposits and other borrowings $ 238 $ 229
−Removed: Income taxes paid 42 94
Transfers of loans to other real estate owned — 1
−Removed: Loans transferred to held for sale from portfolio 431 —
Loans transferred to portfolio from held for sale 6 9
−Removed: We did no t have any restricted cash as of September 30, 2024 and 2023.
+Added: We did no t have any restricted cash as of March 31, 2025 and 2024.
BUSINESS SEGMENTS
8 unchanged sentences
The Insurance segment also includes a reinsurer.
+Added: The interim segmentation and measurement basis for segment profit and loss as of March 31, 2025 is consistent to December 31, 2024.
The following table provides financial information for these segments of FNB.
4 unchanged sentences
Other Consolidated
−Removed: At or for the Three Months Ended September 30, 2024
+Added: At or for the Three Months Ended March 31, 2025
Interest income $ 558 $ — $ — $ 1 $ 559
Interest expense 221 — — 15 236
−Removed: Net interest income 329 — — ( 6 ) 323
+Added: Net interest income (loss) 337 — — ( 14 ) 323
Provision for credit losses 17 — — — 17
Non-interest income:
+Added: Service charges 22 — — — 22
+Added: Interchange and card transaction fees 12 — — — 12
+Added: Trust services — 13 — — 13
+Added: Insurance commissions and fees — — 6 — 6
+Added: Securities commissions and fees — 9 — — 9
+Added: Capital markets income 4 — — 1 5
+Added: Mortgage banking operations 7 — — — 7
+Added: Other 18 — — ( 4 ) 14
+Added: Total non-interest income 63 22 6 ( 3 ) 88
Non-interest expense:
−Removed: 222 14 4 5 245
−Removed: Amortization of intangibles 4 — — — 4
+Added: Salaries and employee benefits 121 10 4 — 135
+Added: Other 101 4 1 5 111
+Added: Total non-interest expense 222 14 5 5 246
Income tax expense (benefit) 34 2 — ( 5 ) 31
1 unchanged sentence
Total assets $ 48,668 $ 50 $ 35 $ 267 $ 49,020
−Removed: Total intangibles 2,499 9 26 — 2,534
−Removed: At or for the Three Months Ended September 30, 2023
−Removed: Interest income $ 512 $ — $ — $ 1 $ 513
−Removed: Interest expense 180 — — 7 187
−Removed: Net interest income 332 — — ( 6 ) 326
−Removed: Provision for credit losses 25 — — — 25
−Removed: Non-interest income 60 18 4 ( 1 ) 81
−Removed: Non-interest expense (1)
+Added: Total loans and leases 34,191 — — 44 34,235
+Added: Total deposits 38,087 — — ( 848 ) 37,239
+Added: Market value of assets under administration - FNBIA, FNTC and FNIS (1)
— 13,897 — — 13,897
−Removed: Amortization of intangibles 5 — — — 5
−Removed: Income tax expense (benefit) 19 2 — ( 2 ) 19
−Removed: Net income (loss) 149 4 ( 1 ) ( 7 ) 145
−Removed: Total assets 45,305 40 30 121 45,496
−Removed: Total intangibles 2,516 9 26 — 2,551
−Removed: (1) Excludes amortization of intangibles, which is presented separately.
(in millions) Community
2 unchanged sentences
Other Consolidated
−Removed: At or for the Nine Months Ended September 30, 2024
+Added: At or for the Three Months Ended March 31, 2024
Interest income $ 542 $ — $ — $ 1 $ 543
Interest expense 218 — — 6 224
−Removed: Net interest income 975 — — ( 17 ) 958
+Added: Net interest income (loss) 324 — — ( 5 ) 319
Provision for credit losses 14 — — — 14
Non-interest income:
+Added: Service charges 21 — — — 21
+Added: Interchange and card transaction fees 13 — — — 13
+Added: Trust services — 11 — — 11
+Added: Insurance commissions and fees — — 7 — 7
+Added: Securities commissions and fees — 8 — — 8
+Added: Capital markets income 5 — — 1 6
+Added: Mortgage banking operations 8 — — — 8
+Added: Other 16 — — ( 2 ) 14
+Added: Total non-interest income 63 19 7 ( 1 ) 88
Non-interest expense:
−Removed: 632 41 14 13 700
−Removed: Amortization of intangibles 13 — — — 13
+Added: Salaries and employee benefits 115 11 3 — 129
+Added: Other 100 2 1 5 108
+Added: Total non-interest expense 215 13 4 5 237
Income tax expense (benefit) 34 2 1 ( 3 ) 34
1 unchanged sentence
Total assets $ 45,639 $ 43 $ 33 $ 181 $ 45,896
−Removed: Total intangibles 2,499 9 26 — 2,534
−Removed: At or for the Nine Months Ended September 30, 2023
−Removed: Interest income $ 1,437 $ — $ — $ 4 $ 1,441
−Removed: Interest expense 425 — — 24 449
−Removed: Net interest income 1,012 — — ( 20 ) 992
−Removed: Provision for credit losses 58 — — — 58
−Removed: Non-interest income 172 54 18 ( 3 ) 241
−Removed: Non-interest expense (1)
+Added: Total loans and leases 32,541 — — 43 32,584
+Added: Total deposits 35,049 — — ( 314 ) 34,735
+Added: Market value of assets under administration - FNBIA, FNTC and FNIS (1)
— 13,515 — — 13,515
−Removed: Amortization of intangibles 15 — — — 15
−Removed: Income tax expense (benefit) 96 4 1 ( 10 ) 91
−Removed: Net income (loss) 439 12 3 ( 20 ) 434
−Removed: Total assets 45,305 40 30 121 45,496
−Removed: Total intangibles 2,516 9 26 — 2,551
−Removed: (1) Excludes amortization of intangibles, which is presented separately.
+Added: (1) The assets under administration are not held on our Consolidated Balance Sheets.
FAIR VALUE MEASUREMENTS
2 unchanged sentences
(in millions) Level 1 Level 2 Level 3 Total
−Removed: September 30, 2024
+Added: March 31, 2025
Assets Measured at Fair Value
2 unchanged sentences
government agencies — 50 — 50
−Removed: government-sponsored entities — 302 — 302
+Added: government-sponsored enterprises — 302 — 302
Residential MBS:
25 unchanged sentences
government agencies — 53 — 53
−Removed: government-sponsored entities — 223 — 223
+Added: government-sponsored enterprises — 300 — 300
Residential MBS:
7 unchanged sentences
Loans held for sale — 214 — 214
+Added: Loans receivable — — 53 53
Derivative financial instruments
13 unchanged sentences
Commitments Total
−Removed: Nine Months Ended September 30, 2024
+Added: Three Months Ended March 31, 2025
Balance at beginning of period $ — $ 53 $ 1 $ 54
9 unchanged sentences
Settlements — — ( 5 ) ( 5 )
+Added: Transfers into Level 3 — 53 — 53
Balance at end of period $ — $ 53 $ 1 $ 54
2 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.
−Removed: During the first nine months of 2024, $ 49.2 million in loans receivable were measured using the fair value option at Level 3 on a recurring basis.
−Removed: There were no transfers of assets or liabilities between the hierarchy levels during the first nine months of 2023.
+Added: During the first three months of 2025, $ 5.6 million was transferred to loans receivable measured using the fair value option at Level 3, compared to $ 46.5 million during the first three months of 2024.
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.
−Removed: 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 .
+Added: Valuation methodologies used to measure these fair value adjustments were described in Note 26, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2024 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:
(in millions) Level 1 Level 2 Level 3 Total
−Removed: September 30, 2024
+Added: March 31, 2025
Collateral dependent loans $ — $ — $ 112 $ 112
Other assets - MSRs — — 19 19
+Added: Other assets - SBA servicing asset — — 1 1
December 31, 2024
Collateral dependent loans $ — $ — $ 105 $ 105
−Removed: Indirect installment loans held for sale — — 338 338
Other assets - MSRs — — 1 1
1 unchanged sentence
Other real estate owned — — 2 2
−Removed: 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, 2024 and December 31, 2023, respectively.
+Added: 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, 2025 and December 31, 2024, respectively.
Consequently, the fair value information presented is not necessarily as of the period’s end.
−Removed: Collateral dependent loans measured or re-measured at fair value on a non-recurring basis during the nine months ended September 30, 2024 had a carrying amount of $ 100.2 million, which includes an allocated ACL of $ 24.6 million.
−Removed: The ACL includes a provision applicable to the current period fair value measurements of $ 39.9 million, which was included in provision for credit losses for the nine months ended September 30, 2024.
−Removed: MSRs measured at fair value on a non-recurring basis had a carrying value of $ 12.5 million, and a valuation allowance of $ 2.8 million as of September 30, 2024.
+Added: Collateral dependent loans measured or re-measured at fair value on a non-recurring basis during the three months ended March 31, 2025 had a carrying amount of $ 112.0 million, which includes an
+Added: allocated ACL of $ 23.1 million.
+Added: The ACL includes a provision applicable to the current period fair value measurements of $ 9.8 million, which was included in provision for credit losses for the three months ended March 31, 2025.
+Added: MSRs measured at fair value on a non-recurring basis had a carrying value of $ 18.7 million, and a valuation allowance of $ 0.2 million as of March 31, 2025.
The valuation allowance includes a provision of $ 0.1 million included in earnings for 2025.
5 unchanged sentences
Value Level 1 Level 2 Level 3
−Removed: September 30, 2024
+Added: March 31, 2025
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.