FNB filing — read by section

Item 1. Financial Statements

ITEM 1. FINANCIAL STATEMENTS 
 
 F.N.B. CORPORATION AND SUBSIDIARIES 
 CONSOLIDATED BALANCE SHEETS 
 (Dollars in millions, except share and per share data) 
 
 March 31,
2026 December 31,
2025 
 (Unaudited) 
 Assets 
 Cash and due from banks $ 452 $ 387 
 Interest-bearing deposits with banks 2,207 2,111 
 Cash and Cash Equivalents 2,659 2,498 
 Debt securities available for sale (amortized cost of $ 3,854 and $ 3,783 ; allowance for credit losses of $ 0 and $ 0 ) 
 3,775 3,727 
 Debt securities held to maturity (fair value of $ 3,972 and $ 3,941 ; allowance for credit losses of $ 0 and $ 0 ) 
 4,183 4,117 
 Loans held for sale (includes $ 317 and $ 514 measured at fair value (1) ) 
 321 515 
 Loans and leases, net of unearned income of $ 78 and $ 87 (includes $ 91 and $ 85 measured at fair value (1) ) 
 35,112 34,777 
 Allowance for credit losses on loans and leases ( 443 ) ( 439 ) 
 Net Loans and Leases 34,669 34,338 
 Premises and equipment, net 566 568 
 Goodwill 2,480 2,480 
 Core deposit and other intangible assets, net 33 36 
 Bank owned life insurance 671 667 
 Other assets 1,271 1,283 
 Total Assets $ 50,628 $ 50,229 
 Liabilities 
 Deposits: 
 Non-interest-bearing $ 10,003 $ 9,914 
 Interest-bearing 28,898 28,845 
 Total Deposits 38,901 38,759 
 Short-term borrowings 2,157 2,017 
 Long-term borrowings 2,001 1,901 
 
 Other liabilities 768 793 
 Total Liabilities 43,827 43,470 
 Shareholders’ Equity 
 Common stock - $ 0.01 par value 
 
 Authorized – 500,000,000 shares 
 
 Issued – 375,030,534 and 375,030,534 shares 
 4 4 
 Additional paid-in capital 4,698 4,695 
 Retained earnings 2,437 2,343 
 Accumulated other comprehensive loss ( 86 ) ( 63 ) 
 Treasury stock – 19,359,629 and 17,727,219 shares at cost 
 ( 252 ) ( 220 ) 
 Total Shareholders’ Equity 6,801 6,759 
 Total Liabilities and Shareholders’ Equity $ 50,628 $ 50,229 

 (1) Amount represents loans for which we have elected the fair value option. See Note 19 . 
 See accompanying Notes to Consolidated Financial Statements (unaudited) 
 5 

 F.N.B. CORPORATION AND SUBSIDIARIES 
 CONSOLIDATED STATEMENTS OF INCOME 
 (Dollars in millions, except per share data) 
 Unaudited 
 
 Three Months Ended
March 31, 
 2026 2025 
 Interest Income 
 Loans and leases, including fees $ 486 $ 480 
 Investment Securities: 
 Taxable 61 55 
 Tax-exempt 7 7 
 
 Other 15 17 
 Total Interest Income 569 559 
 Interest Expense 
 Deposits 169 186 
 Short-term borrowings 18 14 
 Long-term borrowings 23 36 
 Total Interest Expense 210 236 
 Net Interest Income 359 323 
 Provision for credit losses 18 17 
 Net Interest Income After Provision for Credit Losses 341 306 
 Non-Interest Income 
 Service charges 23 22 
 Interchange and card transaction fees 13 12 
 Trust services 13 13 
 Insurance commissions and fees 6 6 
 Securities commissions and fees 9 9 
 Capital markets income 7 5 
 Mortgage banking operations 6 7 
 Dividends on non-marketable equity securities 6 6 
 Bank owned life insurance 4 5 
 
 Other 4 3 
 Total Non-Interest Income 91 88 
 Non-Interest Expense 
 Salaries and employee benefits 136 135 
 Net occupancy 23 20 
 Equipment 28 26 
 
 Outside services 26 26 
 Marketing 4 5 
 FDIC insurance 7 8 
 Bank shares tax 5 4 
 
 Other 29 22 
 Total Non-Interest Expense 258 246 
 Income Before Income Taxes 174 148 
 Income taxes 37 31 
 Net Income 137 117 
 Earnings per Common Share 
 Basic $ 0.38 $ 0.32 
 Diluted 0.38 0.32 

 See accompanying Notes to Consolidated Financial Statements (unaudited) 
 6 

 F.N.B. CORPORATION AND SUBSIDIARIES 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 
 (In millions) 
 Unaudited 
 
 Three Months Ended
March 31, 
 2026 2025 
 Net income $ 137 $ 117 
 Other comprehensive income (loss): 
 Debt securities available for sale: 
 Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $( 5 ) and $ 9 
 ( 18 ) 33 
 
 Derivative instruments: 
 Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $( 2 ) and $ 2 
 ( 5 ) 8 
 Reclassification adjustment for gains (losses) included in net income, net of tax expense (benefit) of $ 0 and $ 2 
 — 6 
 Pension and postretirement benefit obligations: 
 Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $ 0 and $ 0 
 — 1 
 Other Comprehensive Income (Loss) ( 23 ) 48 
 Comprehensive Income (Loss) $ 114 $ 165 

 See accompanying Notes to Consolidated Financial Statements (unaudited) 
 7 

 F.N.B. CORPORATION AND SUBSIDIARIES 
 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY 
 (Dollars in millions, except per share data) 
 Unaudited 
 
 ​ 
 
 Common
Stock Additional
Paid-In
Capital Retained
Earnings Accumulated
Other
Comprehensive
Income (Loss) Treasury
Stock Total 
 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 
 
 Dividends declared on common stock - $ 0.12 /share 
 ( 44 ) ( 44 ) 
 Issuance of common stock — ( 9 ) — 4 ( 5 ) 
 
 Repurchase of common stock ( 10 ) ( 10 ) 
 
 Restricted stock compensation 10 10 
 
 Balance at end of period $ 4 $ 4,696 $ 2,025 $ ( 121 ) $ ( 186 ) $ 6,418 
 Three Months Ended March 31, 2026 
 
 Balance at beginning of period $ 4 $ 4,695 $ 2,343 $ ( 63 ) $ ( 220 ) $ 6,759 
 Comprehensive income (loss) 137 ( 23 ) 114 
 
 Dividends declared on common stock - $ 0.12 /share 
 ( 43 ) ( 43 ) 
 Issuance of common stock — ( 8 ) — 3 ( 5 ) 
 
 Repurchase of common stock ( 35 ) ( 35 ) 
 
 Restricted stock compensation 11 11 
 
 Balance at end of period $ 4 $ 4,698 $ 2,437 $ ( 86 ) $ ( 252 ) $ 6,801 

 See accompanying Notes to Consolidated Financial Statements (unaudited) 
 8 

 F.N.B. CORPORATION AND SUBSIDIARIES 
 CONSOLIDATED STATEMENTS OF CASH FLOWS 
 (In millions) 
 Unaudited 
 
 Three Months Ended
March 31, 
 2026 2025 
 Operating Activities 
 Net income $ 137 $ 117 
 Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: 
 Depreciation, amortization and accretion 23 18 
 Provision for credit losses 18 17 
 Deferred tax expense (benefit) 7 10 
 
 Loans originated for sale ( 396 ) ( 328 ) 
 Loans sold 395 353 
 Net (gains) losses on sale of loans ( 8 ) ( 4 ) 
 Net change in: 
 Interest receivable ( 1 ) ( 2 ) 
 Interest payable 5 ( 3 ) 
 Bank owned life insurance, excluding purchases ( 4 ) ( 2 ) 
 Other, net ( 25 ) ( 112 ) 
 Net cash flows provided by (used in) operating activities 151 64 
 Investing Activities 
 Net change in loans and leases, excluding sales and transfers ( 339 ) ( 300 ) 
 Debt securities available for sale: 
 Purchases ( 282 ) ( 118 ) 
 
 Maturities/payments 213 152 
 Debt securities held to maturity: 
 Purchases ( 142 ) ( 126 ) 
 
 Maturities/payments 78 78 
 
 Increase in premises and equipment ( 18 ) ( 21 ) 
 
 Net proceeds from sales of portfolio loans 191 — 
 
 Net cash flows provided by (used in) investing activities ( 299 ) ( 335 ) 
 Financing Activities 
 Net change in: 
 Deposits 142 132 
 
 Short-term borrowings 139 712 
 Proceeds from issuance of long-term borrowings 105 6 
 Repayment of long-term borrowings ( 5 ) ( 504 ) 
 
 Repurchases of common stock ( 35 ) ( 10 ) 
 Cash dividends paid on common stock ( 43 ) ( 44 ) 
 Other, net 6 5 
 Net cash flows provided by (used in) financing activities 309 297 
 Net Increase (Decrease) in Cash and Cash Equivalents 161 26 
 Cash and cash equivalents at beginning of period 2,498 2,419 
 Cash and Cash Equivalents at End of Period $ 2,659 $ 2,445 

 See accompanying Notes to Consolidated Financial Statements (unaudited) 
 9 

 F.N.B. CORPORATION AND SUBSIDIARIES 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
 (Unaudited) 
 March 31, 2026 
 The terms “FNB,” “the Corporation,” “we,” “us” and “our” throughout this Report mean F.N.B. Corporation and our consolidated subsidiaries, unless the context indicates that we refer only to the parent company, F.N.B. Corporation. When we refer to "FNBPA" in this Report, we mean our bank subsidiary, First National Bank of Pennsylvania, and its subsidiaries. 
 NATURE OF OPERATIONS 
 F.N.B. Corporation, headquartered in Pittsburgh, Pennsylvania, is a diversified financial services company operating in seven states and the District of Columbia. Our market coverage spans several major metropolitan areas including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina; and Charleston, South Carolina. As of March 31, 2026, we had 356 branches throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington D.C. and Virginia. 
 We provide a full range of commercial banking, consumer banking and wealth management solutions through our subsidiary network which is led by our largest affiliate, FNBPA, founded in 1864. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, government banking, business credit, capital markets and equipment financing. Consumer banking provides a full line of consumer banking products and services, including deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. Wealth management and advisory services include asset management, private banking and insurance. 
 
 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 Basis of Presentation 
 Our accompanying Consolidated Financial Statements and these Notes to Consolidated Financial Statements (unaudited) include subsidiaries in which we have a controlling financial interest. We own and operate FNBPA, First National Trust Company, First National Investment Services Company, LLC, First National Insurance Agency, LLC, Bank Capital Services, LLC, F.N.B. Capital Corporation, LLC and FNB America Securities, LLC, and include results for each of these entities in the accompanying Consolidated Financial Statements. 
 Companies in which we hold a controlling financial interest, or are a VIE in which we have the power to direct the activities of an entity that most significantly impact the entity’s economic performance and have an obligation to absorb losses or the right to receive benefits which could potentially be significant to the VIE, are consolidated. For a voting interest entity, a controlling financial interest is generally where we hold more than 50% of the outstanding voting shares. VIEs in which we do not hold the power to direct the activities of the entity that most significantly impact the entity’s economic performance and an obligation to absorb losses or the right to receive benefits which could potentially be significant to the VIE are not consolidated. Investments in companies that are not consolidated are accounted for using the equity method when we have the ability to exert significant influence. Investments in private investment partnerships that are accounted for under the equity method or the cost method are included in other assets and our proportional interest in the equity investments’ earnings are included in other non-interest income. Investment interests accounted for under the cost and equity methods are periodically evaluated for impairment. 
 The accompanying interim unaudited Consolidated Financial Statements include all adjustments that are necessary, in the opinion of management, to fairly reflect our financial position and results of operations in accordance with GAAP. All significant intercompany balances and transactions have been eliminated. Certain prior period amounts have been reclassified to the current period presentation. Such reclassifications had no impact on our net income and shareholders' equity. Events occurring subsequent to March 31, 2026 have been evaluated for potential recognition or disclosure in the Consolidated Financial Statements through the date of the filing of the Consolidated Financial Statements with the SEC. 
 Certain information and Note disclosures normally included in Consolidated Financial Statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The interim operating results are not necessarily indicative of operating results we expect for the full year. These interim unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in our 2025 Annual Report on Form 10-K filed with the SEC on February 24, 2026. 
 10 

 Use of Estimates 
 Our accounting and reporting policies conform with GAAP. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements (unaudited). Actual results could materially differ from those estimates. Material estimates that are particularly susceptible to significant changes include the ACL, fair value of financial instruments, goodwill and other intangible assets and income taxes and deferred tax assets, which are listed in the critical accounting estimates. For a detailed description of our significant accounting policies and critical accounting estimates, see Note 1, "Summary of Significant Accounting Policies" and the "Application of Critical Accounting Policies" section in the MD&A, both in our 2025 Annual Report on Form 10-K . 
 
 NOTE 2. NEW ACCOUNTING STANDARDS 
 The following table summarizes accounting pronouncements issued by the FASB that we recently adopted or will be adopting in the future. 
 TABLE 2.1 
 
 Standard Description Financial Statements Impact 
 
 Income Statement 
 ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures: Clarifying the Effective Date 
 ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses 
 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. Specifically, entities must disaggregate any relevant expense caption that includes one or more of the following natural expense categories: (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). 
 Additionally, this Update also requires entities to disclose selling expense on both an annual and interim basis. This Update does not change the requirements for the presentation of expenses on the face of the income statement. 
 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. Early adoption and retrospective application are permitted. 
 We are currently evaluating the effect this Update will have on related disclosures and our processes, systems, and controls related to the disclosures. 
 
 11 

 Standard Description Financial Statements Impact 
 Software 
 ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software: Targeted Improvements to the Accounting for Internal-Use Software This Update removes the prescriptive stage-based model previously used for capitalization. Capitalization is instead required to begin when management authorizes funding, and the project is likely to be completed and used as intended using the probable-to-complete threshold. 
 Additionally, this Update consolidates guidance applying the new software development principles to website development. 
 This Update is to be applied using either a prospective, modified transition, or retrospective approach and will be effective as of January 1, 2028. Early adoption of this Update is permitted. 
 The adoption of this Update is not expected to have a material impact on our Consolidated Financial Statements. 
 
 Credit Losses 
 ASU 2025-08, Financial Instruments—Credit Losses: Purchased Loans This Update introduces Purchased Seasoned Loans, extending the gross-up approach previously limited to purchased credit-deteriorated assets. An entity applying this approach would add the allowance for credit losses at the date of acquisition to the purchase price to determine the initial amortized cost basis. This Update is to be applied prospectively for annual periods beginning January 1, 2027. Early adoption of this Update is permitted. 
 The adoption of this Update is not expected to have a material impact on our Consolidated Financial Statements. 
 
 Hedging 
 ASU 2025-09, Derivatives and Hedging: Hedge Accounting Improvements This Update expands the hedged risks able to be aggregated in a cash flow hedge based on similar risk exposure, rather than shared risk exposure. 
 Additionally, this Update allows an entity to select an alternative interest rate index or tenor without automatically dedesignating the hedge on forecasted interest payments of choose-your-rate debt instruments. 
 This Update also expands the types of variable price components that can be designated as the hedged risk in a cash flow hedge of a forecasted purchase or sale of a nonfinancial asset. 
 This Update is to be applied prospectively for annual periods beginning January 1, 2027. Early adoption of this Update is permitted. 
 The adoption of this Update is not expected to have a material impact on our Consolidated Financial Statements. 
 
 12 

 NOTE 3. INVESTMENT SECURITIES 
 The amortized cost and fair value of AFS debt securities are presented in the table below. There was no ACL associated with the AFS portfolio at March 31, 2026 and December 31, 2025. Accrued interest receivable on AFS debt securities totaled $ 15.7 million at March 31, 2026 and $ 16.2 million at December 31, 2025, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets. Accordingly, we have excluded accrued interest receivable from both the fair value and amortized cost basis of AFS debt securities. 
 TABLE 3.1 
 
 (in millions) Amortized
Cost Gross
Unrealized
Gains Gross
Unrealized
Losses Fair
 Value 
 Debt Securities AFS: 
 March 31, 2026 
 U.S. Treasury $ 354 $ 1 $ ( 1 ) $ 354 
 U.S. government agencies 31 — — 31 
 U.S. GSE 266 — ( 1 ) 265 
 Residential MBS: 
 Agency MBS 824 4 ( 12 ) 816 
 Agency CMO 631 — ( 63 ) 568 
 
 Agency commercial MBS 1,659 11 ( 16 ) 1,654 
 States of the U.S. and political subdivisions (municipals) 13 — ( 1 ) 12 
 Other debt securities 76 — ( 1 ) 75 
 Total debt securities AFS $ 3,854 $ 16 $ ( 95 ) $ 3,775 
 
 (in millions) Amortized
Cost Gross
Unrealized
Gains Gross
Unrealized
Losses Fair
 Value 
 Debt Securities AFS: 
 December 31, 2025 
 U.S. Treasury $ 354 $ 2 $ — $ 356 
 U.S. government agencies 35 — — 35 
 U.S. GSE 266 — — 266 
 Residential MBS: 
 Agency MBS 801 7 ( 8 ) 800 
 Agency CMO 662 — ( 61 ) 601 
 
 Agency commercial MBS 1,595 19 ( 15 ) 1,599 
 States of the U.S. and political subdivisions (municipals) 20 — ( 1 ) 19 
 Other debt securities 50 1 — 51 
 Total debt securities AFS $ 3,783 $ 29 $ ( 85 ) $ 3,727 

 13 

 The amortized cost and fair value of HTM debt securities are presented in the following table. The ACL for the HTM portfolio was $ 0.33 million and $ 0.29 million at March 31, 2026 and December 31, 2025, respectively. Accrued interest receivable on HTM debt securities totaled $ 15.5 million and $ 15.7 million at March 31, 2026 and December 31, 2025, respectively, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets. Accordingly, we have excluded accrued interest receivable from both the fair value and amortized cost basis of HTM debt securities. 
 TABLE 3.2 
 
 (in millions) Amortized
Cost Gross
Unrealized
Gains Gross
Unrealized
Losses Fair
 Value 
 Debt Securities HTM: 
 March 31, 2026 
 
 Residential MBS: 
 Agency MBS $ 751 $ 1 $ ( 57 ) $ 695 
 Agency CMO 588 — ( 65 ) 523 
 
 Agency commercial MBS 1,837 12 ( 22 ) 1,827 
 States of the U.S. and political subdivisions (municipals) 970 1 ( 80 ) 891 
 Other debt securities 37 — ( 1 ) 36 
 Total debt securities HTM $ 4,183 $ 14 $ ( 225 ) $ 3,972 

 (in millions) Amortized
Cost Gross
Unrealized
Gains Gross
Unrealized
Losses Fair
 Value 
 Debt Securities HTM: 
 December 31, 2025 
 
 Residential MBS: 
 Agency MBS $ 784 $ 2 $ ( 55 ) $ 731 
 Agency CMO 612 — ( 62 ) 550 
 
 Agency commercial MBS 1,715 18 ( 19 ) 1,714 
 States of the U.S. and political subdivisions (municipals) 982 1 ( 60 ) 923 
 Other debt securities 24 — ( 1 ) 23 
 Total debt securities HTM $ 4,117 $ 21 $ ( 197 ) $ 3,941 

 ​ 

 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 86.3 % of these securities backed or sponsored by the U.S. government as of March 31, 2026. There were no significant gross gains or gross losses realized on investment securities during the three months ended March 31, 2026 or 2025. 
 14 

 As of March 31, 2026, the amortized cost and fair value of debt securities, by contractual maturities, were as follows: 
 TABLE 3.3 
 
 Available for Sale Held to Maturity 
 (in millions) Amortized
Cost Fair
Value Amortized
Cost Fair
Value 
 Due in one year or less $ 205 $ 205 $ 8 $ 8 
 Due after one year but within five years 382 380 95 92 
 Due after five years but within ten years 138 137 318 299 
 Due after ten years 15 15 586 528 
 740 737 1,007 927 
 Residential MBS: 
 Agency MBS 824 816 751 695 
 Agency CMO 631 568 588 523 
 
 Agency commercial MBS 1,659 1,654 1,837 1,827 
 Total debt securities $ 3,854 $ 3,775 $ 4,183 $ 3,972 

 Actual maturities may differ from contractual terms because security issuers may have the right to call or prepay obligations with or without penalties. Periodic principal payments are received on residential MBS based on the payment patterns of the underlying collateral. 
 Following is information relating to investment securities pledged: 
 TABLE 3.4 
 
 (dollars in millions) March 31,
2026 December 31,
2025 
 Securities pledged (carrying value): 
 To secure public deposits, trust deposits and for other purposes as required by law $ 6,407 $ 6,445 
 As collateral for short-term borrowings 115 140 
 Securities pledged as a percent of total securities 82.0 % 84.0 % 

 15 

 Following are summaries of the fair values of AFS debt securities in an unrealized loss position for which an ACL has not been recorded, segregated by security type and length of time in a continuous loss position: 
 TABLE 3.5 
 
 Less than 12 Months 12 Months or More Total 
 (dollars in millions) # Fair
 Value Unrealized
Losses # Fair
 Value Unrealized
Losses # Fair
 Value Unrealized
Losses 
 Debt Securities AFS 
 March 31, 2026 
 U.S. Treasury 5 $ 129 $ ( 1 ) — $ — $ — 5 $ 129 $ ( 1 ) 
 U.S. government agencies 4 6 — 11 17 — 15 23 — 
 U.S. GSE 6 164 ( 1 ) 3 51 — 9 215 ( 1 ) 
 Residential MBS: 
 Agency MBS 8 228 ( 4 ) 86 204 ( 8 ) 94 432 ( 12 ) 
 Agency CMO — — — 64 568 ( 63 ) 64 568 ( 63 ) 
 
 Agency commercial MBS 13 377 ( 2 ) 21 344 ( 14 ) 34 721 ( 16 ) 
 States of the U.S. and political subdivisions (municipals) — — — 7 12 ( 1 ) 7 12 ( 1 ) 
 Other debt securities 6 38 ( 1 ) 3 9 — 9 47 ( 1 ) 
 Total 42 $ 942 $ ( 9 ) 195 $ 1,205 $ ( 86 ) 237 $ 2,147 $ ( 95 ) 
 
 Less than 12 Months 12 Months or More Total 
 (dollars in millions) # Fair
 Value Unrealized
Losses # Fair
 Value Unrealized
Losses # Fair
 Value Unrealized
Losses 
 Debt Securities AFS 
 December 31, 2025 
 
 U.S. government agencies 5 $ 8 $ — 12 $ 20 $ — 17 $ 28 $ — 
 U.S. GSE 2 65 — 3 51 — 5 116 — 
 Residential MBS: 
 Agency MBS 1 46 — 90 251 ( 8 ) 91 297 ( 8 ) 
 Agency CMO — — — 64 601 ( 61 ) 64 601 ( 61 ) 
 
 Agency commercial MBS 4 132 ( 1 ) 22 371 ( 14 ) 26 503 ( 15 ) 
 States of the U.S. and political subdivisions (municipals) — — — 9 19 ( 1 ) 9 19 ( 1 ) 
 Other debt securities — — — 3 9 — 3 9 — 
 Total 12 $ 251 $ ( 1 ) 203 $ 1,322 $ ( 84 ) 215 $ 1,573 $ ( 85 ) 

 We evaluated the AFS debt securities that were in an unrealized loss position at March 31, 2026. Based on the credit ratings and/or implied government guarantee for these securities, we concluded the loss position is temporary and caused by movements of interest rates and does not reflect any expected credit losses. We do not intend to sell these AFS debt securities and it is not more likely than not that we will be required to sell these securities before the recovery of their amortized cost basis. 
 16 

 Credit Quality Indicators 
 We use credit ratings and the most recent financial information to help evaluate the credit quality of our credit-related AFS and HTM securities portfolios. Management reviews the credit profile of each issuer on an annual basis, and more frequently as needed. Based on the nature of the issuers and current conditions, we have determined that investment securities backed by the U.S. Department of the Treasury, Fannie Mae, Freddie Mac, FHLB, Ginnie Mae, and the SBA have zero expected credit loss. 
 Our municipal bond portfolio, with a carrying amount of $ 1.0 billion as of March 31, 2026 is highly rated with an average rating of AA and 96 % of the portfolio is rated A or better. All of the investment securities in the municipal portfolio are general obligation bonds. Geographically, municipal bonds generally support our primary footprint as 60 % of the securities are from municipalities located in the primary states within which we conduct business. The average holding size of the securities in the municipal bond portfolio is $ 2.5 million. 
 The ACL on the HTM municipal bond portfolio is calculated on each bond using: 
 • The bond’s underlying credit rating, time to maturity and exposure amount; 
 • Credit enhancements that improve the bond’s credit rating (e.g., insurance); and 
 • Moody’s U.S. Municipal Bond Default and Recovery Rates, 1970-2024. 
 By using these components, we derive the expected credit loss on the HTM general obligation municipal bond portfolio. We further refine the expected credit loss by factoring in economic forecast data using our Commercial and Industrial Non-Manufacturing loan portfolio forecast adjustment as derived through our assessment of the loan portfolio as a proxy for our municipal bond portfolio. 
 Our corporate bond portfolio, with a carrying amount of $ 112.1 million as of March 31, 2026 consists of debentures of banks and bank holding companies. The average holding size of the securities in the corporate bond portfolio is $ 4.7 million. 
 The ACL on the HTM corporate bond portfolio is calculated using: 
 • The bond’s credit rating, time to maturity and exposure amount; 
 • Moody’s Annual Default Study, 03/12/2026; and 
 • The most recent financial statements. 
 By using these components, we derive the expected credit loss on the HTM corporate bond portfolio. We further refine the expected credit loss by factoring in economic forecast data using our bank-wide loan portfolio forecast adjustment as derived through our assessment of FNBPA's loan portfolio as a proxy for our corporate bond portfolio. 
 For the year-to-date periods ending March 31, 2026 and 2025, we had no significant provision expense and no charge-offs or recoveries for the investment securities portfolio. The ACL on the HTM portfolio was $ 0.33 million, consisting of $ 0.06 million relating to the municipal bond portfolio and $ 0.27 million relating to other debt securities, as of March 31, 2026, and $ 0.06 million relating to the municipal bond portfolio and $ 0.23 million relating to other debt securities as of December 31, 2025. The AFS securities portfolios did no t have an ACL at March 31, 2026 or December 31, 2025 and there were no investment securities that were past due or on non-accrual at either date. 
 17 

 NOTE 4. LOANS AND LEASES 
 Accrued interest receivable on loans and leases, which totaled $ 123.2 million at March 31, 2026 and $ 124.1 million at December 31, 2025, is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets for both periods and is not included in the following tables. 
 Loans and Leases by Portfolio Segment 
 Following is a summary of total loans and leases, net of unearned income: 
 TABLE 4.1 
 
 (in millions) March 31, 2026 December 31, 2025 
 Commercial real estate $ 12,164 $ 12,274 
 Commercial and industrial 8,032 7,718 
 Commercial leases 778 791 
 Other 87 141 
 Total commercial loans and leases 21,061 20,924 
 Direct installment 2,655 2,678 
 Residential mortgages 9,038 8,882 
 Indirect installment 805 767 
 Consumer lines of credit 1,553 1,526 
 Total consumer loans 14,051 13,853 
 Total loans and leases, net of unearned income $ 35,112 $ 34,777 

 The remaining accretable discount included in the amortized cost of acquired loans was $ 19.4 million and $ 21.2 million at March 31, 2026 and December 31, 2025, respectively. 
 The loans and leases portfolio categories are comprised of the following types of loans, where in each case the LGD is dependent on the nature and value of the respective collateral: 
 • Commercial real estate includes both owner-occupied and non-owner-occupied loans, including construction loans, secured by commercial properties where operational cash flows on owner-occupied properties, including rents paid by stand-alone business customers, or rents received by our borrowers from their tenant(s) on both a property and global basis are the primary default risk drivers; 
 • Commercial and industrial includes loans to businesses that are not secured by real estate where the borrower's leverage and cash flows from operations are the primary default risk drivers; 
 • Commercial leases consist of leases for new or used equipment where the borrower's cash flow from operations is the primary default risk driver; 
 • Other is comprised primarily of credit cards and mezzanine loans where the borrower's cash flow from operations is the primary default risk driver; 
 • Direct installment is comprised of fixed-rate, closed-end consumer loans for personal, family or household use, such as home equity loans and automobile loans where the primary default risk driver is the borrower's employment status and income; 
 • Residential mortgages consist of conventional and jumbo mortgage loans, including construction loans, for 1-4 family properties where the primary default risk driver is the borrower's employment status and income; 
 • Indirect installment is comprised of loans originated by approved third parties and underwritten by us, primarily automobile loans where the primary default risk driver is the borrower's employment status and income; and 
 18 

 • Consumer lines of credit include home equity lines of credit and consumer lines of credit that are either unsecured or secured by collateral other than home equity where the primary default risk driver is the borrower's employment status and income. 
 The loans and leases portfolio consists principally of loans to individuals and small- and medium-sized businesses within our primary market in seven states and the District of Columbia. Our primary market coverage spans several major metropolitan areas including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina; and Charleston, South Carolina. 
 The following table shows occupancy information relating to commercial real estate loans: 
 TABLE 4.2 
 
 March 31,
2026 December 31,
2025 
 Commercial real estate: 
 Percent owner-occupied 31.5 % 30.9 % 
 Percent non-owner-occupied 68.5 69.1 

 Credit Quality 
 We monitor the credit quality of our loan portfolio using several performance measures based on payment activity and borrower performance. We use an internal risk rating assigned to a commercial loan or lease at origination, summarized below. 
 TABLE 4.3 
 
 Rating Category Definition 
 Pass in general, the condition of the borrower and the performance of the loan is satisfactory or better 
 
 Special Mention in general, the condition of the borrower has deteriorated, requiring an increased level of monitoring 
 
 Substandard in general, the condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate if deficiencies are not corrected 
 
 Doubtful in general, the condition of the borrower has significantly deteriorated and the collection in full of both principal and interest is highly questionable or improbable 

 The use of these internally assigned credit quality categories within the commercial loan and lease portfolio permits our use of transition matrices to establish a basis which is then impacted by quantitative inputs from our econometric model forecasts over the R&S period. Our internal credit risk grading system is based on past experiences with similarly graded loans and leases and conforms to regulatory categories. In general, loan and lease risk ratings within each category are reviewed on an ongoing basis according to our policy for each class of loans and leases. Each quarter, we analyze the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the commercial loan and lease portfolio. Loans and leases within the Pass credit category or that migrate toward the Pass credit category generally have a lower risk of loss compared to loans and leases that migrate toward the Substandard or Doubtful credit categories. Accordingly, we apply higher risk factors to Substandard and Doubtful credit categories. 
 19 

 The following table summarizes the designated loan rating category by loan class including term loans on an amortized cost basis by origination year and year-to-date gross charge-offs by originating year: 
 TABLE 4.4 
 (in millions) 2026 2025 2024 2023 2022 Prior Revolving Loans Amortized Cost Basis Total 
 March 31, 2026 
 COMMERCIAL 
 Commercial Real Estate: 
 Risk Rating: 
 Pass $ 277 $ 1,442 $ 1,298 $ 1,579 $ 1,458 $ 5,027 $ 221 $ 11,302 
 Special Mention — 3 27 29 191 271 3 524 
 Substandard — 2 13 42 56 217 8 338 
 
 Total commercial real estate 277 1,447 1,338 1,650 1,705 5,515 232 12,164 
 Commercial real estate gross charge-offs — — — — 0.2 8.1 — 8.3 
 Commercial and Industrial: 
 Risk Rating: 
 Pass 726 1,713 906 697 567 1,110 1,859 7,578 
 Special Mention — 8 13 12 5 50 164 252 
 Substandard 2 4 17 39 10 52 78 202 
 
 Total commercial and industrial 728 1,725 936 748 582 1,212 2,101 8,032 
 Commercial and industrial gross charge-offs — — 0.3 5.7 0.2 3.0 — 9.2 
 Commercial Leases: 
 Risk Rating: 
 Pass 112 174 209 123 69 71 — 758 
 Special Mention 1 — 3 1 — 3 — 8 
 Substandard — — 2 8 1 1 — 12 
 
 Total commercial leases 113 174 214 132 70 75 — 778 
 Commercial leases gross charge-offs — — — — — 2.0 — 2.0 
 Other Commercial: 
 Risk Rating: 
 Pass 7 — — 61 — 4 15 87 
 
 Total other commercial 7 — — 61 — 4 15 87 
 Other commercial gross charge-offs — — — — — 1.1 — 1.1 
 Total commercial loans and leases 1,125 3,346 2,488 2,591 2,357 6,806 2,348 21,061 
 
 20 

 (in millions) 2026 2025 2024 2023 2022 Prior Revolving Loans Amortized Cost Basis Total 
 March 31, 2026 
 CONSUMER 
 Direct Installment: 
 Current 95 428 256 205 517 1,143 — 2,644 
 Past due — 1 — 1 2 7 — 11 
 Total direct installment 95 429 256 206 519 1,150 — 2,655 
 Direct installment gross charge-offs — 0.1 — 0.1 — — — 0.2 
 Residential Mortgages: 
 Current 423 1,729 1,366 1,185 1,437 2,837 — 8,977 
 Past due — 7 11 9 8 26 — 61 
 Total residential mortgages 423 1,736 1,377 1,194 1,445 2,863 — 9,038 
 Residential mortgages gross charge-offs — — 0.2 — — 0.2 — 0.4 
 Indirect Installment: 
 Current 114 292 244 15 37 92 — 794 
 Past due — 1 2 1 3 4 — 11 
 Total indirect installment 114 293 246 16 40 96 — 805 
 Indirect installment gross charge-offs — 0.3 0.4 0.1 0.3 0.4 — 1.5 
 Consumer Lines of Credit: 
 Current — 4 5 17 38 156 1,322 1,542 
 Past due — — — 1 1 7 2 11 
 Total consumer lines of credit — 4 5 18 39 163 1,324 1,553 
 Consumer lines of credit gross charge-offs — — — — 0.1 0.1 — 0.2 
 Total consumer loans 632 2,462 1,884 1,434 2,043 4,272 1,324 14,051 
 Total loans and leases $ 1,757 $ 5,808 $ 4,372 $ 4,025 $ 4,400 $ 11,078 $ 3,672 $ 35,112 
 Total charge-offs $ — $ 0.4 $ 0.9 $ 5.9 $ 0.8 $ 14.9 $ — $ 22.9 

 21 

 (in millions) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total 
 December 31, 2025 
 COMMERCIAL 
 Commercial Real Estate: 
 Risk Rating: 
 Pass $ 1,438 $ 1,336 $ 1,654 $ 1,587 $ 1,686 $ 3,637 $ 195 $ 11,533 
 Special Mention 5 17 18 135 94 147 6 422 
 Substandard 1 11 10 59 37 195 6 319 
 
 Total commercial real estate 1,444 1,364 1,682 1,781 1,817 3,979 207 12,274 
 Commercial real estate gross charge-offs — — 0.4 5.4 3.9 20.3 — 30.0 
 Commercial and Industrial: 
 Risk Rating: 
 Pass 1,799 1,011 787 616 360 835 1,835 7,243 
 Special Mention 35 11 12 5 3 72 148 286 
 Substandard 2 14 45 11 7 22 88 189 
 
 Total commercial and industrial 1,836 1,036 844 632 370 929 2,071 7,718 
 Commercial and industrial gross charge-offs 0.1 1.5 1.0 3.5 7.0 24.8 — 37.9 
 Commercial Leases: 
 Risk Rating: 
 Pass 262 222 140 73 41 37 — 775 
 Special Mention 1 3 1 — 1 3 — 9 
 Substandard — — 4 1 2 — — 7 
 
 Total commercial leases 263 225 145 74 44 40 — 791 
 Commercial leases gross charge-offs — — — — — 0.2 — 0.2 
 Other Commercial: 
 Risk Rating: 
 Pass 9 — 58 — — 4 70 141 
 
 Total other commercial 9 — 58 — — 4 70 141 
 Other commercial gross charge-offs — — — — — 4.7 — 4.7 
 Total commercial loans and leases 3,552 2,625 2,729 2,487 2,231 4,952 2,348 20,924 
 
 22 

 (in millions) 2025 2024 2023 2022 2021 Prior Revolving Loans Amortized Cost Basis Total 
 December 31, 2025 
 CONSUMER 
 Direct Installment: 
 Current 446 273 218 535 592 601 — 2,665 
 Past due — 1 1 3 2 6 — 13 
 Total direct installment 446 274 219 538 594 607 — 2,678 
 Direct installment gross charge-offs 0.1 0.2 0.2 0.2 — 0.2 — 0.9 
 Residential Mortgages: 
 Current 1,741 1,464 1,245 1,468 1,317 1,579 — 8,814 
 Past due 6 11 11 7 5 28 — 68 
 Total residential mortgages 1,747 1,475 1,256 1,475 1,322 1,607 — 8,882 
 Residential mortgages gross charge-offs 0.1 0.3 0.5 0.1 0.1 1.3 — 2.4 
 Indirect Installment: 
 Current 311 272 16 41 69 43 — 752 
 Past due 1 3 2 4 4 1 — 15 
 Total indirect installment 312 275 18 45 73 44 — 767 
 Indirect installment gross charge-offs 0.4 1.0 0.9 2.5 2.0 0.8 — 7.6 
 Consumer Lines of Credit: 
 Current 4 6 19 39 12 139 1,295 1,514 
 Past due — — 1 1 — 8 2 12 
 Total consumer lines of credit 4 6 20 40 12 147 1,297 1,526 
 Consumer lines of credit gross charge-offs — — 0.1 0.1 — 0.8 — 1.0 
 Total consumer loans 2,509 2,030 1,513 2,098 2,001 2,405 1,297 13,853 
 Total loans and leases $ 6,061 $ 4,655 $ 4,242 $ 4,585 $ 4,232 $ 7,357 $ 3,645 $ 34,777 
 Total charge-offs $ 0.7 $ 3.0 $ 3.1 $ 11.8 $ 13.0 $ 53.1 $ — $ 84.7 

 We use delinquency transition matrices within the consumer and other loan classes to establish the basis for the R&S forecast portion of the credit risk. Each month, management analyzes payment and volume activity, Fair Isaac Corporation (FICO) scores and Debt-to-Income (DTI) scores and other external factors such as unemployment, to determine how consumer loans are performing. 
 23 

 Non-Performing and Past Due 
 The following table provides an analysis of the aging of loans by class. 
 TABLE 4.5 
 
 (in millions) 30-89 Days
Past Due > 90 Days 
 Past Due 
 and Still 
 Accruing 
 Non-
Accrual Total
Past Due Current Total
Loans and
Leases Non-accrual with No ACL 
 March 31, 2026 
 Commercial real estate $ 23 $ — $ 57 $ 80 $ 12,084 $ 12,164 $ 31 
 Commercial and industrial 11 — 35 46 7,986 8,032 13 
 Commercial leases — — 4 4 774 778 — 
 Other 2 35 — 37 50 87 — 
 Total commercial loans and leases 36 35 96 167 20,894 21,061 44 
 Direct installment 7 — 4 11 2,644 2,655 — 
 Residential mortgages 34 13 14 61 8,977 9,038 1 
 Indirect installment 10 — 1 11 794 805 — 
 Consumer lines of credit 6 2 3 11 1,542 1,553 — 
 Total consumer loans 57 15 22 94 13,957 14,051 1 
 Total loans and leases $ 93 $ 50 $ 118 $ 261 $ 34,851 $ 35,112 $ 45 

 (in millions) 30-89 Days
Past Due > 90 Days 
 Past Due 
 and Still 
 Accruing 
 Non-
Accrual Total
Past Due Current Total
Loans and
Leases Non-accrual with No ACL 
 December 31, 2025 
 Commercial real estate $ 10 $ — $ 45 $ 55 $ 12,219 $ 12,274 $ 18 
 Commercial and industrial 10 — 35 45 7,673 7,718 15 
 Commercial leases — — 3 3 788 791 — 
 Other 34 1 2 37 104 141 — 
 Total commercial loans and leases 54 1 85 140 20,784 20,924 33 
 Direct installment 8 1 4 13 2,665 2,678 — 
 Residential mortgages 47 9 12 68 8,814 8,882 1 
 Indirect installment 14 — 1 15 752 767 — 
 Consumer lines of credit 7 2 3 12 1,514 1,526 — 
 Total consumer loans 76 12 20 108 13,745 13,853 1 
 Total loans and leases $ 130 $ 13 $ 105 $ 248 $ 34,529 $ 34,777 $ 34 

 24 

 Following is a summary of non-performing assets: 
 TABLE 4.6 
 
 (dollars in millions) March 31,
2026 December 31,
2025 
 Non-accrual loans $ 118 $ 105 
 Total non-performing loans and leases 118 105 
 Other real estate owned 3 3 
 Total non-performing assets $ 121 $ 108 
 Asset quality ratios: 
 Non-performing loans and leases / total loans and leases 0.33 % 0.30 % 
 Non-performing assets plus 90 days or more past due / total loans and leases plus OREO 
 0.49 0.35 

 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 $ 1.7 million at March 31, 2026 and $ 1.1 million at December 31, 2025. The recorded investment of residential-secured consumer OREO for which formal foreclosure proceedings are in process at March 31, 2026 and December 31, 2025 totaled $ 19.7 million and $ 16.9 million, respectively. 
 Approximately $ 145.5 million of commercial loans are collateral dependent at March 31, 2026. Repayment is expected to be substantially made through the operation or sale of the collateral on the loan. These loans are primarily secured by business assets or commercial real estate. 
 
 Loan Modifications 
 During the period, there are loans whose contractual terms have been modified in a manner that grants a concession to a borrower experiencing financial difficulties. These modifications typically result from loss mitigation activities and could include a term extension, interest rate reduction, principal forgiveness and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. Accrued interest receivable on loan modifications totaled $ 0.31 million and $ 0.02 million at March 31, 2026 and March 31, 2025, respectively, and is excluded from the amortized cost of loan modifications in the tables that follow. 
 25 

 The following table shows the amortized cost basis at the end of the reporting period of the loans modified during the period to borrowers experiencing financial difficulty, disaggregated by class of financing receivable, type of concession granted and the financial effect of the modifications made to borrowers experiencing financial difficulty: 
 TABLE 4.7 
 
 (dollars in millions) Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect 
 
 Three Months Ended March 31, 2026 
 Term Extension 
 Commercial real estate $ 16.9 0.14 % The modified loans had an average increase in term of 13 months, 
 extending the maturity date. 
 
 Commercial and industrial 0.1 — The modified loan had an average increase in term of 65 months, extending the maturity date. 
 
 Residential mortgages 2.0 0.02 The modified loans had an average increase in term of 32 months, extending the maturity date. 
 
 Total 19.0 
 
 Term Extension and Rate Reduction 
 
 Residential mortgages 0.1 — A modification was made with no material financial effect. 
 
 Total 0.1 
 
 Other 
 
 Commercial and industrial 2.5 0.03 The majority resulted in a 3 -month deferral on principal payments. 
 
 Consumer lines of credit 0.3 0.02 A modification was made with no material financial effect. 
 Total 2.8 
 Total Outstanding Modified $ 21.9 
 
 Three Months Ended March 31, 2025 
 Term Extension 
 Commercial real estate $ 1.8 0.01 % The modified loans had an average increase in term of 2 months, extending the maturity date. 
 
 Direct installment 0.5 0.02 The modified loans had an average increase in term of 10 months, extending the maturity date. 
 
 Residential mortgages 2.2 0.03 The modified loans had an average increase in term of 27 months, extending the maturity date. 
 
 Consumer lines of credit 0.1 0.01 The modified loans had an average increase in term of 221 months, extending the maturity date. 
 
 Total 4.6 
 
 Term Extension and Rate Reduction 
 
 Residential mortgages 1.3 0.02 The term was extended, with a weighted average yield reduction of 100 basis points to 450 basis points with extensions up to 27 years. 
 
 Total 1.3 
 
 Other 
 
 Commercial and industrial 0.1 — Multiple modifications were made with no material financial effect. 
 
 Total 0.1 
 Total Outstanding Modified $ 6.0 

 Some loan modifications may not ultimately result in the full collection of principal and interest, as modified, and may result in potential incremental losses which are factored into the ACL. There were no additional funds committed to borrowers whose loans were modified during the first three months of 2026. 
 26 

 Commercial loans over $ 1.0 million whose terms have been modified may be placed on non-accrual, individually analyzed and measured based on the fair value of the underlying collateral. Our ACL includes specific reserves for commercial loans modified. There was $ 1.7 million in specific reserves for commercial loans modified at March 31, 2026 and no specific reserves for commercial loans at December 31, 2025 and pooled reserves for individual loans of $ 0.5 million and $ 0.6 million at those same respective dates, based on loan segment LGD. Upon default, the amount of the recorded investment of the modified loan balance in excess of the fair value of the collateral, less estimated selling costs, is generally considered a confirmed loss and is charged-off against the ACL. 
 All other classes of loans whose terms have been modified are pooled and measured based on the loan segment LGD. Our ACL included pooled reserves for these classes of loans of $ 1.4 million and $ 1.3 million as of March 31, 2026 and December 31, 2025, respectively. Upon default of an individual loan, our charge-off policy is followed for that class of loan. 
 Following is a summary of loans modified in a manner that grants a concession to a borrower experiencing financial difficulties, by class, for which there was a payment default, excluding loans that have been paid off and/or sold. Default occurs when a loan is 90 days or more past due or in non-accrual and is within 12 months of restructuring. 
 TABLE 4.8 
 
 Amortized cost basis of modified financing receivables that subsequently defaulted: 
 (in millions) Term Extension Term Extension and Rate Reduction Balloon Payment Other Total Outstanding Modified 
 
 Three Months Ended March 31, 2026 
 Commercial real estate $ 13.8 $ — $ — $ 1.0 $ 14.8 
 Commercial and industrial 0.8 — — 0.5 1.3 
 
 Total commercial loans and leases 14.6 — — 1.5 16.1 
 Direct installment 0.2 — — — 0.2 
 Residential mortgages 1.7 1.4 — — 3.1 
 
 Total consumer loans 1.9 1.4 — — 3.3 
 Total $ 16.5 $ 1.4 $ — $ 1.5 $ 19.4 

 (in millions) Term Extension Term Extension and Rate Reduction Balloon Payment Other Total Outstanding Modified 
 
 Three Months Ended March 31, 2025 
 Commercial real estate $ 1.0 $ — $ 0.7 $ 6.4 $ 8.1 
 Commercial and industrial 18.6 15.5 — 5.8 39.9 
 
 Total commercial loans and leases 19.6 15.5 0.7 12.2 48.0 
 Direct installment 0.8 — — — 0.8 
 Residential mortgages 5.3 0.8 — — 6.1 
 
 Total consumer loans 6.1 0.8 — — 6.9 
 Total $ 25.7 $ 16.3 $ 0.7 $ 12.2 $ 54.9 

 27 

 We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of our modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months: 
 TABLE 4.9 
 Payment status - amortization cost basis: 
 (in millions) Current 30-89 Days Past Due 90+ Days Past Due 
 March 31, 2026 
 Commercial real estate $ 30.8 $ 1.8 $ — 
 Commercial and industrial 7.5 0.1 — 
 
 Total commercial loans and leases 38.3 1.9 — 
 Direct installment 1.5 0.2 — 
 Residential mortgages 6.5 2.6 0.4 
 
 Consumer lines of credit 0.7 — — 
 Total consumer loans 8.7 2.8 0.4 
 Total $ 47.0 $ 4.7 $ 0.4 
 
 (in millions) Current 30-89 Days Past Due 90+ Days Past Due 
 March 31, 2025 
 Commercial real estate $ 20.2 $ — $ — 
 Commercial and industrial 18.8 — — 
 
 Total commercial loans and leases 39.0 — — 
 Direct installment 1.2 — — 
 Residential mortgages 7.0 2.0 0.4 
 
 Consumer lines of credit 0.8 0.2 — 
 Total consumer loans 9.0 2.2 0.4 
 Total $ 48.0 $ 2.2 $ 0.4 

 NOTE 5. ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES 
 The ACL is maintained for credit losses expected in the existing loan and lease portfolio and is presented as a reserve against loans and leases on the Consolidated Balance Sheets. Loan and lease losses are charged off against the ACL, with recoveries of amounts previously charged off credited to the ACL. Provisions for credit losses are charged to operations based on management’s periodic evaluation of the appropriate level of the ACL. 
 28 

 Following is a summary of changes in the ACL, by loan and lease class: 
 TABLE 5.1 
 
 (in millions) Balance at
Beginning of
Period Charge-
Offs Recoveries Net
(Charge-
Offs) Recoveries Provision
for Credit
 Losses Balance at
End of
Period 
 
 Three Months Ended March 31, 2026 
 Commercial real estate $ 175.9 $ ( 8.3 ) $ 0.2 $ ( 8.1 ) $ ( 2.1 ) $ 165.7 
 Commercial and industrial 98.9 ( 9.2 ) 5.9 ( 3.3 ) 14.1 109.7 
 Commercial leases 26.2 ( 2.0 ) — ( 2.0 ) 2.1 26.3 
 Other 4.4 ( 1.1 ) 0.3 ( 0.8 ) 0.9 4.5 
 Total commercial loans and leases 305.4 ( 20.6 ) 6.4 ( 14.2 ) 15.0 306.2 
 Direct installment 25.7 ( 0.2 ) 0.1 ( 0.1 ) 0.2 25.8 
 Residential mortgages 92.4 ( 0.4 ) — ( 0.4 ) 3.0 95.0 
 Indirect installment 9.0 ( 1.5 ) 0.4 ( 1.1 ) 1.1 9.0 
 Consumer lines of credit 7.0 ( 0.2 ) 0.1 ( 0.1 ) 0.1 7.0 
 Total consumer loans 134.1 ( 2.3 ) 0.6 ( 1.7 ) 4.4 136.8 
 Total allowance for credit losses on loans and leases 439.5 ( 22.9 ) 7.0 ( 15.9 ) 19.4 443.0 
 Allowance for unfunded loan commitments 20.1 — — — ( 0.9 ) 19.2 
 Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments $ 459.6 $ ( 22.9 ) $ 7.0 $ ( 15.9 ) $ 18.5 $ 462.2 

 (in millions) Balance at
Beginning of
Period Charge-
Offs Recoveries Net
(Charge-
Offs) Recoveries Provision
for Credit
Losses Balance at
End of
Period 
 
 Three Months Ended March 31, 2025 
 Commercial real estate $ 166.9 $ ( 7.6 ) $ 0.4 $ ( 7.2 ) $ 13.7 $ 173.4 
 Commercial and industrial 85.6 ( 4.3 ) 2.5 ( 1.8 ) 4.8 88.6 
 Commercial leases 22.9 ( 0.1 ) — ( 0.1 ) — 22.8 
 Other 4.3 ( 1.1 ) 0.3 ( 0.8 ) 0.9 4.4 
 Total commercial loans and leases 279.7 ( 13.1 ) 3.2 ( 9.9 ) 19.4 289.2 
 Direct installment 29.1 ( 0.4 ) 0.1 ( 0.3 ) ( 0.7 ) 28.1 
 Residential mortgages 95.9 ( 0.4 ) 0.1 ( 0.3 ) ( 1.5 ) 94.1 
 Indirect installment 9.5 ( 2.2 ) 0.4 ( 1.8 ) 1.5 9.2 
 Consumer lines of credit 8.6 ( 0.3 ) 0.1 ( 0.2 ) ( 0.1 ) 8.3 
 Total consumer loans 143.1 ( 3.3 ) 0.7 ( 2.6 ) ( 0.8 ) 139.7 
 Total allowance for credit losses on loans and leases 422.8 ( 16.4 ) 3.9 ( 12.5 ) 18.6 428.9 
 Allowance for unfunded loan commitments 21.4 — — — ( 1.1 ) 20.3 
 Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments $ 444.2 $ ( 16.4 ) $ 3.9 $ ( 12.5 ) $ 17.5 $ 449.2 

 29 

 Following is a summary of changes in the AULC by portfolio segment: 
 TABLE 5.2 
 
 Three Months Ended
March 31, 
 2026 2025 
 (in millions) 
 Balance at beginning of period $ 20.1 $ 21.4 
 Provision for unfunded loan commitments and letters of credit: 
 Commercial portfolio ( 0.9 ) ( 1.1 ) 
 
 Balance at end of period $ 19.2 $ 20.3 

 The model used to calculate the ACL is dependent on the portfolio composition and credit quality, as well as historical experience, current conditions and forecasts of economic conditions and interest rates. Specifically, the following considerations are incorporated into the ACL calculation: 
 • a third-party macroeconomic forecast scenario; 
 • a 24-month R&S forecast period for macroeconomic factors with a reversion to the historical mean on a straight-line basis over a 12-month period; and 
 • the historical through-the-cycle mean was calculated using an expanded period to include a prior recessionary period. 
 At March 31, 2026 and December 31, 2025, we utilized a third-party consensus macroeconomic forecast reflecting the current and projected macroeconomic environment. For our ACL calculation at March 31, 2026, the macroeconomic variables that we utilized included, but were not limited to: (i) the purchase only Housing Price Index, which increases 4.0 % over our R&S forecast period, (ii) a Commercial Real Estate (CRE) Price Index, which increases 1.3 % over our R&S forecast period, (iii) S&P Volatility, which increases 17.5 % in 2026 and decreases 4.6 % in 2027 and (iv) personal and business bankruptcies, which increase and decrease, respectively, 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, 2025 included, but were not limited to: (i) the purchase only Housing Price Index, which increases 4.3 % over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which decreases 0.5 % over our R&S forecast period, (iii) S&P Volatility, which decreases 2.2 % in 2026 and 7.9 % in 2027 and (iv) personal and business bankruptcies, which increase steadily over the R&S forecast period but average below the historical through-the-cycle period. 
 The ACL on loans and leases of $ 443.0 million at March 31, 2026 increased $ 3.5 million, or 0.8 %, from December 31, 2025. Our ending ACL coverage ratio at March 31, 2026 was 1.26 %, and 1.26 % at December 31, 2025. Total provision for credit losses for the three months ended March 31, 2026 was $ 18.5 million, compared to $ 17.5 million in the same period of 2025. Net charge-offs were $ 15.9 million, or 0.18 % annualized of average total loans, during the three months ended March 31, 2026, compared to $ 12.5 million, or 0.15 % annualized, for the same period of 2025. 
 
 NOTE 6. LOAN SERVICING 
 Mortgage Loan Servicing 
 We retain the servicing rights on certain mortgage loans sold. The unpaid principal balance of mortgage loans serviced for others is listed below: 
 TABLE 6.1 
 
 (in millions) March 31,
2026 December 31,
2025 
 Mortgage loans sold with servicing retained $ 7,189 $ 7,062 

 30 

 The following table summarizes activity relating to mortgage loans sold with servicing retained: 
 TABLE 6.2 
 
 Three Months Ended
March 31, 
 (in millions) 2026 2025 
 Mortgage loans sold with servicing retained $ 557 $ 312 
 Pre-tax net gains (losses) resulting from above loan sales (1) 
 7 4 
 Mortgage servicing fees (1) 
 5 4 

 (1) Recorded in mortgage banking operations on the Consolidated Statements of Income. 
 Following is a summary of activity relating to MSRs: 
 TABLE 6.3 
 
 Three Months Ended
March 31, 
 (in millions) 2026 2025 
 Balance at beginning of period $ 73.5 $ 70.5 
 
 Additions 4.5 3.5 
 Payoffs and curtailments ( 1.8 ) ( 0.8 ) 
 Impairment (charge) / recovery 0.1 ( 0.1 ) 
 Amortization / other ( 2.4 ) ( 0.5 ) 
 Balance at end of period $ 73.9 $ 72.6 
 Fair value, beginning of period $ 88.2 $ 86.3 
 Fair value, end of period 91.8 84.8 

 There was no valuation allowance for MSRs at March 31, 2026 and the valuation allowance for MSRs as of December 31, 2025 was $ 0.1 million. 
 The fair value of MSRs is highly sensitive to changes in assumptions and is determined by estimating the present value of the asset’s future cash flows utilizing market-based prepayment rates, discount rates and other assumptions validated through comparison to trade information, industry surveys and the use of independent third-party valuations. Changes in prepayment speed assumptions have the most significant impact on the fair value of MSRs. Generally, as interest rates decline, mortgage loan prepayments accelerate due to increased refinance activity, which results in a decrease in the fair value of MSRs and as interest rates increase, mortgage loan prepayments decline, which results in an increase in the fair value of MSRs. Measurement of fair value is limited to the conditions existing and the assumptions utilized as of a particular point in time, and those assumptions may not be appropriate if they are applied at a different point in time. 
 31 

 Following is a summary of the sensitivity of the fair value of MSRs to changes in key assumptions: 
 TABLE 6.4 
 
 (dollars in millions) March 31,
2026 December 31,
2025 
 Weighted average life (months) 91 89 
 Constant prepayment rate (annualized) 8.4 % 8.6 % 
 Discount rate 10.1 % 10.1 % 
 Effect on fair value due to change in interest rates: 
 +2.00% $ 11 $ 13 
 +1.00% 9 10 
 +0.50% 6 7 
 +0.25% 4 4 
 -0.25% ( 4 ) ( 4 ) 
 -0.50% ( 9 ) ( 8 ) 
 -1.00% ( 16 ) ( 14 ) 
 -2.00% ( 26 ) ( 24 ) 
 -3.00% ( 43 ) ( 42 ) 

 The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the changes in assumptions to fair value may not be linear. Also, in this table, the effects of an adverse variation in a particular assumption on the fair value of MSRs is calculated without changing any other assumptions, while, in reality, changes in one factor may result in changing another, which may magnify or contract the effect of the change. 
 
 ​ 
 
 ​ 
 
 ​ 
 
 ​ 
 
 NOTE 7. LEASES 
 We have operating leases primarily for certain branches, office space, land and office equipment. We have finance leases for certain branches. Our operating leases expire at various dates through the year 2046 and generally include one or more options to renew. Our finance leases expire at various dates through the year 2051 and generally include one or more options to renew. The exercise of lease renewal options is at our sole discretion. As of March 31, 2026, we had operating lease right-of-use assets and operating lease liabilities of $ 206.7 million and $ 247.8 million, respectively, including $ 69.9 million in operating right-of-use assets and $ 100.1 million in operating lease liabilities with a related party. As of March 31, 2026, we had finance lease right-of-use assets and finance lease liabilities of $ 35.4 million and $ 38.7 million, respectively. 
 Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of March 31, 2026, we have certain operating lease agreements, primarily for administrative office space, that are expected to commence in 2026 with lease terms of up to 20 years. At commencement, it is expected that these leases will add approximately $ 4.7 million in right-of-use assets and $ 4.7 million in other liabilities. The Pittsburgh headquarters building is a related party operating lease 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. 
 32 

 The components of lease expense were as follows: 
 TABLE 7.1 
 
 Three Months Ended
March 31, 
 (in millions) 2026 2025 
 Operating lease cost $ 11 $ 10 
 
 Variable lease cost 2 1 
 
 Finance lease cost 1 1 
 Total lease cost $ 14 $ 12 

 Other information related to leases is as follows: 
 TABLE 7.2 
 
 Three Months Ended
March 31, 
 (dollars in millions) 2026 2025 
 Cash paid for amounts included in the measurement of lease liabilities: 
 Operating cash flows from operating leases $ 10 $ 10 
 Operating cash flows from finance leases $ — $ — 
 Right-of-use assets obtained in exchange for lease obligations: 
 Operating leases $ 13 $ 16 
 Finance leases $ 4 $ — 
 Weighted average remaining lease term (years): 
 Operating leases 10 11 
 Finance leases 17 17 
 Weighted average discount rate: 
 Operating leases 4.1 % 4.0 % 
 Finance leases 3.7 % 3.6 % 

 Future cash flows of lease liabilities are as follows: 
 TABLE 7.3 
 
 (in millions) Operating Leases Finance Leases Total Leases 
 March 31, 2026 
 0 - 12 months $ 38 $ 3 $ 41 
 13 - 24 months 35 3 38 
 25 - 36 months 31 3 34 
 37 - 48 months 29 3 32 
 49 - 60 months 26 3 29 
 Later years 148 37 185 
 Total lease payments 307 52 359 
 Less: imputed interest ( 59 ) ( 13 ) ( 72 ) 
 Present value of lease liabilities $ 248 $ 39 $ 287 

 33 

 As a lessor we offer commercial leasing services to customers in need of new or used equipment primarily within our market areas of Pennsylvania, Ohio, Maryland, North Carolina, South Carolina and West Virginia. Additional information relating to commercial leasing is provided in Note 4, “Loans and Leases” in the Notes to Consolidated Financial Statements. 
 
 NOTE 8. VARIABLE INTEREST ENTITIES 
 We evaluate our interest in certain entities to determine if these entities meet the definition of a VIE and whether we are the primary beneficiary and required to consolidate the entity based on the variable interest we held both at inception and when there is a change in circumstances that requires a reconsideration. 
 Unconsolidated VIEs 
 The following table provides a summary of the assets and liabilities included in our Consolidated Financial Statements, as well as the maximum exposure to losses, associated with our interests related to VIEs for which we hold an interest, but are not the primary beneficiary. Additionally, we have an operating lease with a related party and a maximum exposure to loss of approximately $ 70 million and FNBPA made a construction loan to the same related party. For further information about this unconsolidated VIE, please see Note 7, "Leases." 
 TABLE 8.1 
 
 (in millions) Total Assets Total Liabilities Maximum Exposure to Loss 
 March 31, 2026 
 Trust preferred securities (1) 
 $ 3 $ 74 $ — 
 Tax credit partnerships 174 66 174 
 Other investments 38 — 38 
 Total $ 215 $ 140 $ 212 
 December 31, 2025 
 Trust preferred securities (1) 
 $ 3 $ 74 $ — 
 Tax credit partnerships 174 66 174 
 Other investments 38 — 38 
 Total $ 215 $ 140 $ 212 
 (1) Represents our investment in unconsolidated subsidiaries. 

 Trust-Preferred Securities 
 We have certain wholly-owned trusts whose assets, liabilities, equity, income and expenses are not included within our Consolidated Financial Statements. These trusts have been formed for the sole purpose of issuing TPS, from which the proceeds are then invested in our junior subordinated debentures, which are reflected in our Consolidated Balance Sheets as junior subordinated debt. The TPS are the obligations of the trusts, and as such, are not consolidated within our Consolidated Financial Statements. For additional information relating to our TPS, see Note 10, “Borrowings” in the Notes to Consolidated Financial Statements. 
 Each issue of the junior subordinated debentures has an interest rate equal to the corresponding TPS distribution rate. We have the right to defer payment of interest on the debentures at any time, or from time-to-time for a period not exceeding five years provided that no extension period may extend beyond the stated maturity of the related debentures. During any such extension period, distributions to the TPS will also be deferred and our ability to pay dividends on our common stock will be restricted. Periodic cash payments and payments upon liquidation or redemption with respect to TPS are guaranteed by us to the extent of funds held by the trusts. The guarantee ranks subordinate and junior in right of payment to all our indebtedness to the same extent as the junior subordinated debt. The guarantee does not place a limitation on the amount of additional indebtedness that may be incurred by us. 
 34 

 Affordable Housing, Historic and New Market Tax Credit Partnerships 
 We make equity investments as a limited partner in various partnerships of affordable housing (LIHTC), historic tax credit (HTC) and new market tax credit (NMTC) programs pursuant to Sections 42, 47 and 45d of the Internal Revenue Code, respectively. The purpose of many of these investments is to support initiatives associated with the Community Reinvestment Act while earning a satisfactory return. The activities of the LIHTC partnerships include the development and operation of multi-family housing that is leased to qualifying residential tenants. HTC partnerships allow us to make investments in projects that involve the rehabilitation of historic structures, often combining our investments with bank financing. NMTC partnerships are designed to channel investments into distressed communities, fostering community development and stimulating economic growth. These tax credit partnerships are generally located in communities where we have a banking presence and meet the definition of a VIE; however, we are not the primary beneficiary of the entities, as the general partner or managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses beyond our own equity investment. 
 We apply the proportional amortization method of accounting for our investments in LIHTC, 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: 
 TABLE 8.2 
 
 (in millions) March 31,
2026 December 31,
2025 
 Tax credit investments included in other assets $ 108 $ 108 
 Unfunded tax credit investments 66 66 

 The following table summarizes the impact of these tax credit investments on the provision for income taxes in our Consolidated Statements of Income: 
 TABLE 8.3 
 
 Three Months Ended
March 31, 
 (in millions) 2026 2025 
 Provision for income taxes: 
 Amortization of tax credit investments under proportional method $ 7 $ 6 
 Tax credits from tax credit investments ( 7 ) ( 6 ) 
 Other tax benefits related to tax credit investments ( 1 ) ( 1 ) 
 Total impact on provision for income taxes $ ( 1 ) $ ( 1 ) 

 Other Investments 
 Other investments we also consider to be unconsolidated VIEs include investments in Small Business Investment Companies and other equity method investments. 
 35 

 NOTE 9. DEPOSITS 
 Following is a summary of deposits: 
 TABLE 9.1 
 
 (in millions) March 31,
2026 December 31,
2025 
 Non-interest-bearing demand $ 10,003 $ 9,914 
 Interest-bearing demand 6,662 6,740 
 Money market 11,699 11,707 
 Savings 3,130 3,090 
 
 Certificates and other time deposits 7,407 7,308 
 Total deposits $ 38,901 $ 38,759 

 NOTE 10. BORROWINGS 
 Following is a summary of short-term borrowings: 
 TABLE 10.1 
 
 (in millions) March 31,
2026 December 31,
2025 
 Securities sold under repurchase agreements $ 103 $ 131 
 Federal Home Loan Bank advances 1,000 1,055 
 Federal funds purchased 920 705 
 Subordinated notes 134 126 
 Total short-term borrowings $ 2,157 $ 2,017 

 Borrowings with original maturities of one year or less are classified as short-term. Securities sold under repurchase agreements are comprised of customer repurchase agreements, which are sweep accounts with next-day maturities utilized by larger commercial customers to earn interest on their funds. Securities are pledged to these customers in an amount at least equal to the outstanding balance. Of the total short-term FHLB advances, $ 350.0 million, or 35.0 %, had overnight maturities as of March 31, 2026, compared to $ 530.0 million, or 50.2 %, as of December 31, 2025. At March 31, 2026 and December 31, 2025, none of the short-term FHLB advances were swapped to fixed rates. Federal funds purchased are overnight funds borrowed from other financial institutions. Subordinated notes are unsecured and subordinated to our other indebtedness. The short-term subordinated notes mature within one year . 
 Following is a summary of long-term borrowings: 
 TABLE 10.2 
 
 (in millions) March 31,
2026 December 31,
2025 
 Federal Home Loan Bank advances $ 1,200 $ 1,100 
 Senior notes 498 498 
 Subordinated notes 86 86 
 Junior subordinated debt 74 74 
 Other subordinated debt 143 143 
 Total long-term borrowings $ 2,001 $ 1,901 

 Our banking affiliate has available credit with the FHLB of $ 12.0 billion, of which $ 9.4 billion was available for borrowing as of March 31, 2026. The outstanding FHLB advances (including both short-term and long-term borrowings) are secured by 
 36 

 $ 16.6 billion of loans collateralized by residential mortgages, home equity lines of credit and commercial real estate. The short-term borrowings are scheduled to mature in various amounts periodically through 2026 while the long-term borrowings are scheduled to mature periodically through 2028. Weighted average interest rates paid on long-term FHLB advances held during the three months ended March 31, 2026 and 2025 were 3.95 % and 4.46 %, respectively. 
 The following table provides information relating to our senior notes and other subordinated debt as of March 31, 2026. The subordinated notes are eligible for treatment as tier 2 capital for regulatory capital purposes. 
 TABLE 10.3 
 (dollars in millions) Aggregate Principal Amount Issued Net Proceeds (5) 
 Carrying Value Stated Maturity Date Interest
Rate 
 Senior Notes: 
 
 Fixed-To-Floating Rate Senior Notes due December 11, 2030 (1) 
 $ 500 $ 497 $ 498 12/11/2030 5.722 % 
 Total senior notes 500 497 498 
 Other Subordinated Debt: 
 Fixed-To-Floating Rate Subordinated Notes due 2029 (2) 
 120 118 119 2/14/2029 6.314 % 
 Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 (3) (4) 
 25 26 24 12/6/2028 6.951 % 
 
 Total other subordinated debt 145 144 143 
 Total $ 645 $ 641 $ 641 

 (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. 
 (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. 
 (4) Assumed from an acquisition and adjusted to fair value at the time of acquisition. 
 (5) After deducting underwriting discounts and commissions and offering costs. For the debt assumed from acquisitions, this is the fair value of the debt at the time of the acquisition. 
 The junior subordinated debt is comprised of the debt securities issued by FNB, or companies we acquired, in relation to our four unconsolidated subsidiary trusts (collectively, the Trusts), which are unconsolidated VIEs, and are included on the Consolidated Balance Sheets in long-term borrowings. Since third-party investors are the primary beneficiaries, the Trusts are not consolidated in our Financial Statements. We record the distributions on the junior subordinated debt issued to the Trusts as interest expense. 
 The following table provides information relating to the Trusts as of March 31, 2026: 
 TABLE 10.4 
 
 (dollars in millions) Trust
Preferred
Securities Common
Securities Junior
Subordinated
Debt Stated
Maturity
Date Interest Rate 
 Rate Reset Factor 
 F.N.B. Statutory Trust II $ 22 $ 1 $ 22 6/15/2036 5.59 % SOFR + 165 bps 
 
 Yadkin Valley Statutory Trust I 25 1 23 12/15/2037 5.26 % SOFR + 132 bps 
 
 FNB Financial Services Capital Trust I 25 1 24 9/30/2035 5.42 % SOFR + 146 bps 
 
 Patapsco Statutory Trust I 5 — 5 12/15/2035 5.42 % SOFR + 148 bps 
 
 Total $ 77 $ 3 $ 74 

 The SOFR rate used for the rate reset factors in the above table is the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points). 
 Other Credit Availability 
 Excluding FHLB availability, our banking affiliate has additional unused other wholesale credit availability of $ 9.5 billion as of March 31, 2026. 
 37 

 NOTE 11. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES 
 We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate risk, primarily by managing the amount, source, and duration of our assets and liabilities, and through the use of derivative instruments. Derivative instruments are used to reduce the effects that changes in interest rates may have on net income and cash flows. We also use derivative instruments to facilitate transactions on behalf of our customers. 
 All derivatives are carried on the Consolidated Balance Sheets at fair value and do not take into account the effects of master netting arrangements we have with other financial institutions. Credit risk is included in the determination of the estimated fair value of derivatives. Derivative assets are reported in the Consolidated Balance Sheets in other assets 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. Changes in fair value are recognized in earnings except for certain changes related to derivative instruments designated as part of a cash flow hedging relationship, which are recognized in other comprehensive income. 
 The following table presents notional amounts and gross fair values of our derivative assets and derivative liabilities which are not offset in the Consolidated Balance Sheets: 
 TABLE 11.1 
 
 March 31, 2026 December 31, 2025 
 Notional Fair Value Notional Fair Value 
 (in millions) Amount Assets Liabilities Amount Assets Liabilities 
 Gross Derivatives 
 Subject to master netting arrangements: 
 Interest rate contracts – designated $ 1,900 $ 6 $ — $ 1,650 $ 13 $ — 
 Interest rate swaps – not designated 5,911 54 35 6,064 51 51 
 
 Total subject to master netting arrangements 7,811 60 35 7,714 64 51 
 Not subject to master netting arrangements: 
 Interest rate swaps – not designated 5,911 35 159 6,064 51 155 
 Interest rate lock commitments – not designated 334 4 1 298 7 — 
 Forward delivery commitments – not designated 573 4 — 458 — 2 
 Credit risk contracts – not designated 860 — — 815 — — 
 
 Total not subject to master netting arrangements 7,678 43 160 7,635 58 157 
 Total $ 15,489 $ 103 $ 195 $ 15,349 $ 122 $ 208 

 Certain derivative exchanges have enacted a rule change which in effect results in the legal characterization of variation margin payments for certain derivative contracts as settlement of the derivatives mark-to-market exposure and not collateral. Accordingly, we have changed our reporting of certain derivatives to record variation margin on trades cleared through these exchanges as settled. The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument. 
 Derivatives Designated as Hedging Instruments under GAAP 
 Interest Rate Contracts. We entered into interest rate derivative agreements to modify the interest rate characteristics of certain commercial loans and certain of our FHLB advances from variable rate to fixed rate in order to reduce the impact of changes in future cash flows due to market interest rate changes. These agreements are designated as cash flow hedges, in the form of interest rate swaps and collars, hedging the exposure to variability in expected future cash flows. The derivative’s gain or loss, 
 38 

 including any ineffectiveness, is initially reported as a component of other comprehensive income and subsequently reclassified into earnings in the same line item associated with the forecasted transaction when the forecasted transaction affects earnings. 
 The following table shows amounts reclassified from AOCI: 
 TABLE 11.2 
 
 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income 
 Three Months Ended
March 31, Three Months Ended
March 31, 
 (in millions) 2026 2025 2026 2025 
 Derivatives in cash flow hedging relationships: 
 Interest rate contracts $ ( 6 ) $ 10 Interest income (expense) $ 1 $ ( 8 ) 
 
 The following table represents gains (losses) recognized in the Consolidated Statements of Income on cash flow hedging relationships: 
 TABLE 11.3 
 
 Three months ended March 31, 
 2026 2025 
 (in millions) Interest Income - Loans and Leases Interest Expense - Short-Term Borrowings Interest Income - Loans and Leases Interest Expense - Short-Term Borrowings 
 Total amounts of income and expense line items presented in the Consolidated Statements of Income (the effects of cash flow hedges are included in these line items) $ 486 $ 18 $ 480 $ 14 
 The effects of cash flow hedging: 
 Gain (loss) on cash flow hedging relationships: 
 Interest rate contracts: 
 Amount of gain (loss) reclassified from AOCI into net income 1 — ( 8 ) — 
 
 As of March 31, 2026, the maximum length of time over which forecasted interest cash flows are hedged is 3.8 years. In the twelve months that follow March 31, 2026, we expect to reclassify from the amount currently reported in AOCI net derivative gains of $ 2.1 million ($ 1.6 million net of tax), in association with interest on the hedged loans. 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, 2026. 
 There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness related to these cash flow hedges. Also, during the three months ended March 31, 2026 and 2025, there were no gains or losses from cash flow hedge derivatives reclassified to earnings because it became probable that the original forecasted transactions would not occur. 
 Derivatives Not Designated as Hedging Instruments under GAAP 
 A description of interest rate swaps, interest rate lock commitments, forward delivery commitments and credit risk contracts can be found in Note 15, "Derivative Instruments and Hedging Activities" in the Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K filed with the SEC on February 24, 2026. 
 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. 
 39 

 Risk participation agreements sold with notional amounts totaling $ 614 million as of March 31, 2026 have remaining terms ranging from two months to 15 years. Under these agreements, our maximum exposure assuming a customer defaults on their obligation to perform under certain derivative swap contracts with third parties would be $ 0 at both March 31, 2026 and December 31, 2025. The fair values of risk participation agreements purchased and sold were $ 0.1 million and $ 0.1 million, respectively, at March 31, 2026, and $ 0.1 million and $ 0.1 million, respectively, at December 31, 2025. 
 The following table presents the effect of certain derivative financial instruments on the Consolidated Statements of Income: 
 TABLE 11.4 
 
 Three Months Ended
March 31, 
 (in millions) Consolidated Statements of Income Location 2026 2025 
 Interest rate swaps Non-interest income - other $ — $ — 
 
 Mortgage banking contracts Mortgage banking operations 5 ( 4 ) 
 Credit risk contracts Non-interest income - other — — 

 Counterparty Credit Risk 
 We are party to master netting arrangements with most of our swap derivative dealer counterparties. Collateral, usually marketable securities and/or cash, is exchanged between FNB and our counterparties, and is generally subject to thresholds and transfer minimums. For swap transactions that require central clearing, we post cash and securities to our clearing agency. Collateral positions are settled or valued daily, and adjustments to amounts received and pledged by us are made as appropriate to maintain proper collateralization for these transactions. 
 Certain master netting agreements contain provisions that, if violated, could cause the counterparties to request immediate settlement or demand full collateralization under the derivative instrument. If we had breached our agreements with our derivative counterparties we would be required to settle our obligations under the agreements at the termination value and would be required to pay $ 0.0 million as of March 31, 2026 and $ 0.1 million as of December 31, 2025, in excess of amounts previously posted as collateral with the respective counterparty. 
 40 

 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: 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. 
 TABLE 11.5 
 
 Gross Amounts Not Offset in the Consolidated Balance Sheets 
 (in millions) Gross Amount Recognized Gross Amount Offset in the Consolidated Balance Sheets Net Amount
Presented in
the Consolidated Balance
Sheets Financial
Instruments Available for Offset Collateral Received/Pledged Net
Amount 
 March 31, 2026 
 Derivative Assets 
 Subject to master netting arrangement $ 60 $ — $ 60 $ 32 $ 28 $ — 
 Not subject to master netting arrangement 35 — 35 
 Total $ 95 $ — $ 95 

 Derivative Liabilities 
 Subject to master netting arrangement $ 35 $ — $ 35 $ 32 $ 3 $ — 
 Not subject to master netting arrangement 159 — 159 
 Total $ 194 $ — $ 194 

 December 31, 2025 
 Derivative Assets 
 Subject to master netting arrangement $ 64 $ — $ 64 $ 43 $ 20 $ 1 
 Not subject to master netting arrangement 51 — 51 
 Total $ 115 $ — $ 115 

 Derivative Liabilities 
 Subject to master netting arrangement $ 51 $ — $ 51 $ 43 $ 8 $ — 
 Not subject to master netting arrangement 155 — 155 
 Total $ 206 $ — $ 206 

 NOTE 12. COMMITMENTS, CREDIT RISK AND CONTINGENCIES 
 We have commitments to extend credit and standby letters of credit that involve certain elements of credit risk in excess of the amount stated in the Consolidated Balance Sheets. Our exposure to credit loss in the event of non-performance by the customer is represented by the contractual amount of those instruments. The credit risk associated with commitments to extend credit and standby letters of credit is essentially the same as that involved in extending loans and leases to customers and is subject to normal credit policies. Since many of these commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. 
 41 

 Following is a summary of off-balance sheet credit risk information: 
 TABLE 12.1 
 
 (in millions) March 31,
2026 December 31,
2025 
 Commitments to extend credit $ 15,066 $ 14,806 
 Standby letters of credit 271 263 

 At March 31, 2026, funding of 82.0 % of the commitments to extend credit was dependent on the financial condition of the customer. We have the ability to withdraw such commitments at our discretion. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Based on management’s credit evaluation of the customer, collateral may be deemed necessary. Collateral requirements vary and may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. 
 Standby letters of credit are conditional commitments issued by us that may require payment at a future date. The credit risk involved in issuing letters of credit is actively monitored through review of the historical performance of our portfolios. 
 Our AULC for commitments that are not unconditionally cancellable, which is included in other liabilities on the Consolidated Balance Sheets, was $ 19.2 million at March 31, 2026 and $ 20.1 million at December 31, 2025. Additional information relating to the AULC is provided in Note 5, "Allowance for Credit Losses on Loans and Leases" in the Notes to Consolidated Financial Statements. 
 In addition to the above commitments, subordinated notes issued by FNB Financial Services, LP, a wholly-owned finance subsidiary, are fully and unconditionally guaranteed by FNB. These subordinated notes are included in the summaries of short-term borrowings and long-term borrowings in Note 10, “Borrowings” in the Notes to Consolidated Financial Statements. 
 Other Legal Proceedings 
 In the ordinary course of business, we may assert claims in legal proceedings against another party or parties, and likewise may be named as defendants in, or made parties to, pending and potential legal actions. Also, as regulated entities, we are subject to governmental and regulatory examinations, information-gathering requests, and may be subject to investigations and proceedings (both formal and informal). Such asserted or threatened claims, litigation, investigations, inquiries, regulatory and administrative proceedings typically entail matters that are considered incidental to the normal conduct of business. Claims for significant monetary damages may be asserted in many of these types of legal actions, while claims for disgorgement, reimbursement, restitution, penalties and/or other remedial actions or sanctions may be sought in regulatory matters. In these instances, if we determine that we have meritorious defenses, we will engage in an aggressive defense. However, if management determines, in consultation with counsel, that settlement of a matter is in the best interest of FNB and our shareholders, we may do so. It is inherently difficult to predict the eventual outcomes of such matters given their complexity and the particular facts and circumstances at issue in each of these matters. However, on the basis of our current knowledge and understanding, and advice of counsel, we do not believe that judgments, sanctions, settlement resolutions, regulatory actions, investigations, inquiries, settlements or orders, if any, that have arisen or may arise from these matters (either individually or in the aggregate, after giving effect to applicable reserves and insurance coverage) will have a material adverse effect on our financial position or liquidity, although they could potentially have a material effect on net income in a given period. 
 In view of the inherent unpredictability of outcomes in litigation and governmental and regulatory matters, particularly where (i) the damages sought are indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel legal theories or a large number of parties, as a matter of course, there is considerable uncertainty surrounding the timing or ultimate resolution of litigation and governmental and regulatory matters, including a possible eventual loss, financial or other commitments, fine, restitution, penalty, business or adverse reputational impact, if any, associated with each such matter. In accordance with applicable accounting guidance, we establish accruals for litigation and governmental and regulatory matters when those matters proceed to a stage where they present loss contingencies that are both probable and reasonably estimable. In such cases, there may be a possible exposure to loss in excess of any amounts accrued. We will continue to monitor such matters, including ongoing reviews, examinations, and investigations by banking regulatory agencies and other government authorities, for developments that could affect the amount of the accrual, and will adjust the accrual amount as appropriate. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably 
 42 

 estimable. We believe that our accruals for legal proceedings are appropriate and, in the aggregate, are not material to our consolidated financial position, although future accruals could have a material effect on net income in a given period. 
 On February 5, 2024, we announced that Yadkin Bank and its successor by merger, FNBPA, reached a settlement with the DOJ and the State of North Carolina to resolve their fair lending concerns, which FNBPA disputed, related to the assessment of mortgage lending activities during a four-year period in the Winston-Salem and Charlotte, North Carolina markets that began prior to Yadkin’s merger with FNBPA in March 2017. The settlement included FNBPA's commitment to provide $ 11.75 million in subsidies on mortgages and home equity loans originated in the Charlotte and Winston-Salem, North Carolina markets beginning in 2024 continuing until the full amount has been deployed. This subsidy amount is part of our existing, previously announced commitment to underserved communities, including the Winston-Salem and Charlotte markets. 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. Effective January 2026, FNBPA had fully deployed the $ 11.75 million mortgage subsidy in the Charlotte and Winson Salem MBHCTs and is in compliance with all material terms of the settlement. 
 
 NOTE 13. STOCK INCENTIVE PLANS 
 Restricted Stock 
 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. The grant date fair value of the time-based awards is equal to the price of our common stock on the grant date. The fair value of the performance-based awards is based on a Monte-Carlo simulation valuation of our common stock as of the grant date. The assumptions used for this valuation include stock price volatility, risk-free interest rate and dividend yield. We granted 437,283 and 518,654 restricted stock units during the three months ended March 31, 2026 and 2025, respectively, including 262,372 and 311,194 performance-based restricted stock units during those same periods, respectively. We have shareholder approval under the Plan to issue up to 14,000,000 shares of common stock. As of March 31, 2026, we had 6,889,360 remaining shares available for awards under the Plan. 
 The unvested restricted stock unit awards are eligible to receive cash dividends or dividend equivalents which are ultimately used to purchase additional shares of stock and are subject to forfeiture if the requisite service period is not completed or the specified performance criteria are not met. These awards are subject to certain accelerated vesting provisions upon retirement, death, disability or in the event of a change in control as defined in the award agreements. 
 The following table summarizes the activity relating to restricted stock units during the periods indicated: 
 TABLE 13.1 
 
 Three Months Ended March 31, 
 2026 2025 
 Units Weighted
Average
Grant
Price per
Share Units Weighted
Average
Grant
Price per
Share 
 Unvested units outstanding at beginning of period 3,484,248 $ 13.92 3,571,311 $ 13.38 
 Granted 437,283 18.38 518,654 15.82 
 
 Net adjustment 220,911 — 269,322 — 
 Vested ( 694,458 ) 15.20 ( 821,979 ) 14.34 
 Forfeited/expired/canceled ( 1,881 ) 14.10 ( 22,023 ) 12.70 
 
 Unvested units outstanding at end of period 3,446,103 14.32 3,515,285 13.62 

 43 

 The following table provides certain information related to restricted stock units: 
 TABLE 13.2 
 
 Three Months Ended
March 31, 
 (in millions) 2026 2025 
 Stock-based compensation expense $ 11 $ 10 
 Tax benefit related to stock-based compensation expense 2 2 
 Fair value of units vested 11 12 

 The components of the restricted stock units as of March 31, 2026 are as follows: 
 TABLE 13.3 
 
 (dollars in millions) Service-
Based
Units Performance-
Based
Units Total 
 Unvested restricted stock units 2,490,018 956,085 3,446,103 
 Unrecognized compensation expense $ 9 $ 1 $ 10 
 Intrinsic value $ 42 $ 16 $ 58 
 Weighted average remaining life (in years) 1.75 2.30 1.90 

 NOTE 14. INCOME TAXES 
 Income Tax Expense 
 Federal and state income tax expense and the statutory tax rate and the actual effective tax rate consist of the following: 
 TABLE 14.1 
 
 Three Months Ended
March 31, 
 (dollars in millions) 2026 2025 
 Current income taxes: 
 Federal taxes $ 27 $ 19 
 State taxes 3 2 
 Total current income taxes 30 21 
 Deferred income taxes: 
 Federal taxes 6 9 
 State taxes 1 1 
 Total deferred income taxes 7 10 
 Total income taxes $ 37 $ 31 
 Statutory federal tax rate 21.0 % 21.0 % 
 Effective tax rate 21.2 20.9 

 Income tax expense was higher for the three months ended March 31, 2026, primarily due to higher pre-tax income. 
 44 

 Deferred Income Taxes 
 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and tax purposes. Deferred tax assets and liabilities are measured based on the enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Net deferred tax liabilities were $ 17.3 million and $ 17.1 million at March 31, 2026 and December 31, 2025, respectively. 
 
 NOTE 15. OTHER COMPREHENSIVE INCOME (LOSS) 
 The following table presents changes in AOCI, net of tax, by component: 
 TABLE 15.1 
 
 (in millions) Unrealized
Net Gains (Losses) on
Debt Securities
Available
for Sale Unrealized
Net Gains
(Losses) on
Derivative
Instruments Unrecognized
Pension and
Postretirement
Obligations Total 
 Three Months Ended March 31, 2026 
 Balance at beginning of period $ ( 43 ) $ 10 $ ( 30 ) $ ( 63 ) 
 Other comprehensive income (loss) before reclassifications ( 18 ) ( 5 ) — ( 23 ) 
 
 Net current period other comprehensive income (loss) ( 18 ) ( 5 ) — ( 23 ) 
 Balance at end of period $ ( 61 ) $ 5 $ ( 30 ) $ ( 86 ) 
 
 The amounts reclassified from AOCI related to debt securities AFS are included in net securities gains (losses) on the Consolidated Statements of Income, while the amounts reclassified from AOCI related to derivative instruments in cash flow hedge programs are generally included in interest income on loans and leases on the Consolidated Statements of Income. The tax (benefit) expense amounts reclassified from AOCI in connection with the debt securities AFS and derivative instruments reclassifications are included in income taxes on the Consolidated Statements of Income. 
 
 NOTE 16. EARNINGS PER COMMON SHARE 
 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. 
 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 restricted shares, as calculated using the treasury stock method. Adjustments to the weighted average number of shares of common stock outstanding are made only when such adjustments dilute earnings per common share. 
 The following table sets forth the computation of basic and diluted earnings per common share: 
 TABLE 16.1 
 
 Three Months Ended
March 31, 
 ( dollars in millions, except per share data) 
 2026 2025 
 Net income $ 137 $ 117 
 Basic weighted average common shares outstanding 359,490,102 361,725,530 
 Net effect of dilutive stock options and restricted stock 744,505 1,343,074 
 Diluted weighted average common shares outstanding 360,234,607 363,068,604 
 Earnings per common share: 
 Basic $ 0.38 $ 0.32 
 Diluted $ 0.38 $ 0.32 

 45 

 There were no anti-dilutive shares for the three months ended March 31, 2026 and 2025. 
 ​ 
 
 NOTE 17. CASH FLOW INFORMATION 
 Following is a summary of supplemental cash flow information: 
 TABLE 17.1 
 
 Three Months Ended
March 31, 
 (in millions) 2026 2025 
 Interest paid on deposits and other borrowings $ 205 $ 238 
 Income taxes (refunded) paid 4 — 
 Transfers of loans to other real estate owned 1 — 
 
 Loans transferred to portfolio from held for sale 12 6 

 We did no t have any restricted cash as of March 31, 2026 and 2025. 
 
 NOTE 18. BUSINESS SEGMENTS 
 We operate in three reportable segments: Community Banking, Wealth Management and Insurance. 
 • The Community Banking segment provides commercial and consumer banking services. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, business credit, capital markets and equipment financing. Consumer banking products and services include deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. 
 • The Wealth Management segment provides a broad range of personal and corporate fiduciary services including the administration of decedent and trust estates. In addition, it offers various alternative products, including securities brokerage (under a third-party arrangement) and investment advisory services, mutual funds and annuities. 
 • The Insurance segment includes a full-service insurance brokerage service offering all lines of commercial and personal insurance through major carriers. The Insurance segment also includes a reinsurer. 
 The interim segmentation and measurement basis for segment profit and loss as of March 31, 2026 is consistent with December 31, 2025. 
 46 

 The following table provides financial information for these segments of FNB. The information provided under the caption “Parent and Other” represents operations not considered to be reportable segments and/or general operating expenses of FNB, and includes the parent company, other non-bank subsidiaries and eliminations and adjustments to reconcile to the Consolidated Financial Statements. 
 TABLE 18.1 
 
 ​ 
 
 (in millions) Community
Banking Wealth
Management Insurance Parent and
Other Consolidated 
 At or for the Three Months Ended March 31, 2026 
 Interest income $ 567 $ — $ — $ 2 $ 569 
 Interest expense 202 — — 8 210 
 Net interest income (loss) 365 — — ( 6 ) 359 
 Provision for credit losses 18 — — — 18 
 Non-interest income: 
 Service charges 23 — — — 23 
 Interchange and card transaction fees 13 — — — 13 
 Trust services — 13 — — 13 
 Insurance commissions and fees — — 6 — 6 
 Securities commissions and fees — 9 — — 9 
 Capital markets income 5 — — 2 7 
 Mortgage banking operations 6 — — — 6 
 Other 17 — — ( 3 ) 14 
 Total non-interest income 64 22 6 ( 1 ) 91 
 Non-interest expense: 
 Salaries and employee benefits 120 11 4 1 136 
 
 Other 112 3 1 6 122 
 Total non-interest expense 232 14 5 7 258 
 Income tax expense (benefit) 39 2 — ( 4 ) 37 
 Net income (loss) $ 140 $ 6 $ 1 $ ( 10 ) $ 137 
 
 Total assets $ 50,287 $ 50 $ 33 $ 258 $ 50,628 
 Total loans and leases 35,062 — — 50 35,112 
 Total deposits 39,227 — — ( 326 ) 38,901 
 Market value of assets under administration - FNTC and FNIS (1) 
 — 15,102 — — 15,102 
 
 47 

 (in millions) Community
Banking Wealth
Management Insurance Parent and
Other Consolidated 
 At or for the Three Months Ended March 31, 2025 
 Interest income $ 558 $ — $ — $ 1 $ 559 
 Interest expense 221 — — 15 236 
 Net interest income (loss) 337 — — ( 14 ) 323 
 Provision for credit losses 17 — — — 17 
 Non-interest income: 
 Service charges 22 — — — 22 
 Interchange and card transaction fees 12 — — — 12 
 Trust services — 13 — — 13 
 Insurance commissions and fees — — 6 — 6 
 Securities commissions and fees — 9 — — 9 
 Capital markets income 4 — — 1 5 
 Mortgage banking operations 7 — — — 7 
 Other 18 — — ( 4 ) 14 
 Total non-interest income 63 22 6 ( 3 ) 88 
 Non-interest expense: 
 Salaries and employee benefits 121 10 4 — 135 
 
 Other 101 4 1 5 111 
 Total non-interest expense 222 14 5 5 246 
 Income tax expense (benefit) 34 2 — ( 5 ) 31 
 Net income (loss) $ 127 $ 6 $ 1 $ ( 17 ) $ 117 
 
 Total assets $ 48,668 $ 50 $ 35 $ 267 $ 49,020 
 Total loans and leases 34,191 — — 44 34,235 
 Total deposits 38,087 — — ( 848 ) 37,239 
 Market value of assets under administration - FNBIA, FNTC and FNIS (1) 
 — 13,897 — — 13,897 

 (1) The assets under administration are not held on our Consolidated Balance Sheets. 
 48 

 NOTE 19. FAIR VALUE MEASUREMENTS 
 Refer to Note 25, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K filed with the SEC on February 24, 2026 for a description of additional valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis. 
 The following table presents the balances of assets and liabilities measured at fair value on a recurring basis: 
 TABLE 19.1 
 
 (in millions) Level 1 Level 2 Level 3 Total 
 March 31, 2026 
 Assets Measured at Fair Value 
 Debt securities available for sale 
 U.S. Treasury $ 354 $ — $ — $ 354 
 U.S. government agencies — 31 — 31 
 U.S. GSE — 265 — 265 
 Residential MBS: 
 Agency MBS — 816 — 816 
 Agency CMO — 568 — 568 
 
 Agency commercial MBS — 1,654 — 1,654 
 States of the U.S. and political subdivisions (municipals) — 12 — 12 
 Other debt securities — 75 — 75 
 Total debt securities available for sale 354 3,421 — 3,775 
 Loans held for sale — 317 — 317 
 Loans receivable — — 91 91 
 
 Derivative financial instruments 
 Trading — 89 — 89 
 Not for trading — 10 4 14 
 Total derivative financial instruments — 99 4 103 
 Total assets measured at fair value on a recurring basis $ 354 $ 3,837 $ 95 $ 4,286 
 Liabilities Measured at Fair Value 
 Derivative financial instruments 
 Trading $ — $ 194 $ — $ 194 
 Not for trading — — 1 1 
 Total derivative financial instruments — 194 1 195 
 Total liabilities measured at fair value on a recurring basis $ — $ 194 $ 1 $ 195 

 49 

 (in millions) Level 1 Level 2 Level 3 Total 
 December 31, 2025 
 Assets Measured at Fair Value 
 Debt securities available for sale 
 U.S. Treasury $ 356 $ — $ — $ 356 
 U.S. government agencies — 35 — 35 
 U.S. GSE — 266 — 266 
 Residential MBS: 
 Agency MBS — 800 — 800 
 Agency CMO — 601 — 601 
 
 Agency commercial MBS — 1,599 — 1,599 
 States of the U.S. and political subdivisions (municipals) — 19 — 19 
 Other debt securities — 51 — 51 
 Total debt securities available for sale 356 3,371 — 3,727 
 Loans held for sale — 514 — 514 
 Loans receivable — — 85 85 
 
 Derivative financial instruments 
 Trading — 102 — 102 
 Not for trading — 13 7 20 
 Total derivative financial instruments — 115 7 122 
 Total assets measured at fair value on a recurring basis $ 356 $ 4,000 $ 92 $ 4,448 
 Liabilities Measured at Fair Value 
 Derivative financial instruments 
 Trading $ — $ 207 $ — $ 207 
 Not for trading — 1 — 1 
 Total derivative financial instruments — 208 — 208 
 Total liabilities measured at fair value on a recurring basis $ — $ 208 $ — $ 208 

 50 

 The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value: 
 TABLE 19.2 
 
 (in millions) Loans Receivable Interest
Rate Lock
Commitments Total 
 Three Months Ended March 31, 2026 
 Balance at beginning of period $ 85 $ 7 $ 92 
 
 Purchases, issuances, sales and settlements: 
 
 Issuances — 4 4 
 
 Settlements — ( 7 ) ( 7 ) 
 
 Transfers into Level 3 6 — 6 
 Balance at end of period $ 91 $ 4 $ 95 
 Year Ended December 31, 2025 
 Balance at beginning of period $ 53 $ 1 $ 54 
 
 Purchases, issuances, sales and settlements: 
 
 Issuances — 7 7 
 
 Settlements — ( 1 ) ( 1 ) 
 
 Transfers into Level 3 32 — 32 
 Balance at end of period $ 85 $ 7 $ 92 

 We review fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation attributes may result in reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in/out of Level 3 at fair value at the beginning of the period in which the changes occur. During the first three months of 2026, $ 6.9 million was transferred to loans receivable measured using the fair value option at Level 3, compared to $ 5.6 million during the first three months of 2025. 
 From time to time, we measure certain assets at fair value on a non-recurring basis. These adjustments to fair value usually result from the application of the lower of cost or fair value accounting or write-downs of individual assets. Valuation methodologies used to measure these fair value adjustments were described in Note 25, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K . For assets measured at fair value on a non-recurring basis still held at the Balance Sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios: 
 TABLE 19.3 
 
 (in millions) Level 1 Level 2 Level 3 Total 
 March 31, 2026 
 Collateral dependent loans $ — $ — $ 92 $ 92 
 
 Other assets - SBA servicing asset — — 2 2 
 
 December 31, 2025 
 Collateral dependent loans $ — $ — $ 126 $ 126 
 
 Other assets - MSRs — — 2 2 
 Other assets - SBA servicing asset — — 2 2 
 Other real estate owned — — 1 1 

 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, 2026 and December 31, 2025, respectively. Consequently, the fair value information presented is not necessarily as of the period’s end. Collateral dependent loans measured or re-measured at fair value on a non-recurring basis during the three months ended March 31, 2026 had a carrying amount of $ 92.3 million, which includes an 
 51 

 allocated ACL of $ 20.5 million. The ACL includes a provision applicable to the current period fair value measurements of $ 2.8 million, which was included in provision for credit losses for the three months ended March 31, 2026. 
 Fair Value of Financial Instruments 
 Refer to Note 25, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K filed with the SEC on February 24, 2026 for a description of methods and assumptions that were used to estimate the fair value of each financial instrument. 
 The fair values of our financial instruments are as follows: 
 TABLE 19.4 
 
 Fair Value Measurements 
 (in millions) Carrying
Amount Fair
 Value Level 1 Level 2 Level 3 
 March 31, 2026 
 Financial Assets 
 Cash and cash equivalents $ 2,659 $ 2,659 $ 2,659 $ — $ — 
 Debt securities available for sale 3,775 3,775 354 3,421 — 
 Debt securities held to maturity 4,183 3,972 — 3,972 — 
 Net loans and leases, including loans held for sale 34,990 34,540 — 317 34,223 
 Loan servicing rights 76 94 — — 94 
 
 Derivative assets 103 103 — 99 4 
 Accrued interest receivable 164 164 164 — — 
 Financial Liabilities 
 Deposits 38,901 38,872 31,494 7,378 — 
 Short-term borrowings 2,157 2,156 2,156 — — 
 Long-term borrowings 2,001 2,004 — 1,200 804 
 Derivative liabilities 195 195 — 194 1 
 Accrued interest payable 55 55 55 — — 
 December 31, 2025 
 Financial Assets 
 Cash and cash equivalents $ 2,498 $ 2,498 $ 2,498 $ — $ — 
 Debt securities available for sale 3,727 3,727 356 3,371 — 
 Debt securities held to maturity 4,117 3,941 — 3,941 — 
 Net loans and leases, including loans held for sale 34,853 34,320 — 514 33,806 
 Loan servicing rights 75 90 — — 90 
 
 Derivative assets 122 122 — 115 7 
 Accrued interest receivable 163 163 163 — — 
 Financial Liabilities 
 Deposits 38,759 38,736 31,451 7,285 — 
 Short-term borrowings 2,017 2,018 2,018 — — 
 Long-term borrowings 1,901 1,920 — 1,103 817 
 Derivative liabilities 208 208 — 208 — 
 Accrued interest payable 50 50 50 — — 

 52
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.
FNB CORP/PA/ 10-Q

Item 1. Financial Statements
