PaulMcKinnon Shares of F.N.B. Corporation (NYSE:FNB) are trading near a 52-week high, up 19% from a year ago, which has lagged the S&P 500’s 30+% return over this period. Most regional banks have been underperformers over the past 12-18 months, given the challenges caused by the Q1 2023 banking crisis, though FNB has acquitted itself fairly well. Additionally, since recommending shares as a buy in November, FNB has returned over 18%, a bit ahead of the S&P 500’s 15% return. I have been impressed by rece ...

National Awards Highlight Strength of Employee Experience PITTSBURGH, March 20, 2024 /PRNewswire/ -- F.N.B. Corporation (NYSE: FNB) announced today that its largest subsidiary, First National Bank, has been named a Top Workplace USA for a fourth consecutive year. Presented by Energage and USA Today, FNB has now appeared on the Top Workplaces USA list each year since it was launched in 2021. Energage, an independent research firm specializing in workplace engagement and organizational health, compiles its a ...

F.N.B Corp. (FNB) is well-poised for revenue growth on the back of steady loan demand and strong fee income. Higher interest rates and a strong balance sheet position will continue to support its financials. However, rising expenses and weak asset quality remain major near-term concerns.F.N.B. Corp. is focused on its revenue growth strategy. The company’s revenues witnessed a five-year (2018-2023) compound annual growth rate (CAGR) of 5.4%, despite recording a decline in 2021 due to lower rates and a dismal ...

Financial Performance and Growth - Total assets increased to $46.158 billion in 2023 from $43.725 billion in 2022, reflecting a growth of 5.6%[454] - Net loans and leases grew to $31.917 billion in 2023, up from $29.853 billion in 2022, an increase of 6.9%[454] - Net interest income rose to $1.317 billion in 2023, up from $1.120 billion in 2022, a 17.6% increase[456] - Net income available to common stockholders increased to $477 million in 2023 from $431 million in 2022, a 10.7% growth[456] - Earnings per common share (diluted) improved to $1.31 in 2023 from $1.22 in 2022, a 7.4% increase[456] - Comprehensive income for 2023 was $607 million, a significant improvement from $144 million in 2022[457] - Retained earnings grew to $1.669 billion in 2023, up from $1.370 billion in 2022, a 21.8% increase[458] - Net income for 2023 was $485 million, an increase of 10.5% from $439 million in 2022[459] Credit Losses and Allowances - F.N.B. Corporation's net loan and lease portfolio was $32.3 billion with an associated Allowance for Credit Losses (ACL) of $405.6 million as of December 31, 2023[441] - The ACL is composed of three components: quantitative reserves, asset-specific reserves, and qualitative reserves, which capture factors such as regulatory, legal, and technological environments, competition, forecast uncertainty, and natural disasters[441] - The qualitative factors in the ACL process are especially challenging to audit due to their reliance on expert credit judgment and the need to capture risks not addressed by quantitative models[442] - Total allowance for credit losses on loans and leases increased from $401.7 million to $405.6 million in 2023[607] - Commercial real estate allowance for credit losses increased from $162.1 million to $166.6 million in 2023[607] - Residential mortgages allowance for credit losses rose from $55.5 million to $70.5 million in 2023[607] - Total allowance for unfunded loan commitments increased slightly from $21.4 million to $21.5 million in 2023[607] - ACL on loans and leases increased by $3.9 million (1.0%) to $405.6 million at December 31, 2023, compared to December 31, 2022[610] - Ending ACL coverage ratio decreased to 1.25% at December 31, 2023, from 1.33% at December 31, 2022[610] - Total provision for credit losses for 2023 was $71.8 million, compared to $64.2 million in 2022[610] - Net charge-offs in 2023 were $67.7 million, including a $31.9 million commercial loan charge-off due to alleged fraud[610] Internal Controls and Audits - Management concluded that F.N.B. Corporation's internal control over financial reporting was effective as of December 31, 2023, based on the COSO criteria[432] - Ernst & Young LLP audited F.N.B. Corporation's internal control over financial reporting and expressed an unqualified opinion on its effectiveness as of December 31, 2023[446] - F.N.B. Corporation's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP[451] Loans and Leases Portfolio - Total loans and leases, net of unearned income, grew to $32.323 billion in 2023 from $30.255 billion in 2022, with commercial real estate loans increasing to $12.305 billion and residential mortgages rising to $6.640 billion[575] - The company transferred $355 million of indirect automobile loans to the held-for-sale portfolio in Q4 2023, with the sale completed in February 2024[577] - Commercial real estate loans were 29.0% owner-occupied and 71.0% non-owner-occupied as of December 31, 2023, compared to 30.2% and 69.8% respectively in 2022[579] - Related-party loans decreased to $12 million at the end of 2023 from $13 million at the beginning of the year, with $8 million in new loans and $10 million in repayments[581] - The commercial loan portfolio had $12.4 million in gross charge-offs for commercial real estate and $51.2 million for commercial and industrial loans in 2023[585] - The remaining accretable discount on acquired loans decreased to $42.6 million in 2023 from $58.6 million in 2022, including $10.0 million for Howard and Union at acquisition[576] - Accrued interest receivable on loans and leases increased to $128.6 million in 2023 from $99.3 million in 2022, excluded from credit loss estimates[574] - Total consumer loans decreased to $2,115 million in 2023 from $2,862 million in 2022, a decline of 26.1%[586] - Total loans and leases decreased to $5,486 million in 2023 from $6,624 million in 2022, a decline of 17.2%[586] - Total charge-offs decreased to $0.8 million in 2023 from $5.2 million in 2022, a decline of 84.6%[586] - Direct installment loans decreased to $340 million in 2023 from $713 million in 2022, a decline of 52.3%[586] - Residential mortgages decreased to $1,424 million in 2023 from $1,692 million in 2022, a decline of 15.8%[586] - Indirect installment loans decreased to $313 million in 2023 from $395 million in 2022, a decline of 20.8%[586] - Consumer lines of credit decreased to $38 million in 2023 from $62 million in 2022, a decline of 38.7%[586] - Total direct installment gross charge-offs were $0.6 million over the period from 2019 to 2023[586] - Total residential mortgages gross charge-offs were $0.7 million over the period from 2019 to 2023[586] - Total indirect installment gross charge-offs were $10.7 million over the period from 2019 to 2023[586] - Total commercial real estate loans amounted to $11.526 billion, with $2.013 billion in 2022 and $2.390 billion in 2021[587] - Total direct installment loans reached $2.784 billion, with $801 million in 2022 and $888 million in 2021[587] - Total consumer loans stood at $10.965 billion, with $3.146 billion in 2022 and $2.864 billion in 2021[587] - Total loans and leases were $30.255 billion, with $7.061 billion in 2022 and $6.630 billion in 2021[587] - Residential mortgages totaled $5.249 billion, with $1.464 billion in 2022 and $1.587 billion in 2021[587] - Consumer lines of credit amounted to $1.331 billion, with $74 million in 2022 and $18 million in 2021[587] - Total indirect installment loans were $1.553 billion, with $805 million in 2022 and $368 million in 2021[587] - Total commercial and industrial loans reached $19.290 billion, with $1.655 billion in 2022 and $1.249 billion in 2021[587] - Total other commercial loans were $5.297 billion, with $1.531 billion in 2022 and $1.311 billion in 2021[587] - Total loans and leases past due increased to $226 million in 2023 from $216 million in 2022, with commercial loans and leases contributing $118 million and consumer loans contributing $108 million[590] - Non-performing loans and leases decreased to $107 million in 2023 from $113 million in 2022, representing 0.33% of total loans and leases compared to 0.37% in 2022[592] - Approximately $54.8 million of commercial loans are collateral dependent at December 31, 2023, with repayment expected through the operation or sale of collateral[593] - Accrued interest receivable on loan modifications totaled $0.41 million at December 31, 2023, excluded from the amortized cost of loan modifications[594] - Total outstanding modified loans amounted to $59.2 million at December 31, 2023, with term extensions being the most common modification type[595] - Specific reserves for commercial loans modified increased to $5.3 million in 2023 from $0 in 2022, with pooled reserves at $2.0 million[597] - Pooled reserves for other classes of modified loans remained stable at $3.8 million for both December 31, 2023 and 2022[598] - Amortized cost basis of modified financing receivables that subsequently defaulted totaled $28.2 million at December 31, 2023[600] - Payment status of modified loans showed $47.8 million current, $11.3 million 30-89 days past due, and $0.1 million 90+ days past due at December 31, 2023[601] - Total commercial loans recorded investment pre-modification was $3 million, post-modification decreased to $2 million[604] - Total consumer loans recorded investment remained stable at $10 million pre and post-modification[604] Securities and Investments - The fair value of AFS debt securities as of December 31, 2023, was $3.254 billion, with an amortized cost of $3.460 billion[557] - The fair value of HTM debt securities as of December 31, 2023, included an ACL of $0.28 million[558] - Total debt securities HTM as of December 31, 2023, had an amortized cost of $3,911 million and a fair value of $3,593 million, reflecting unrealized losses of $326 million[559] - The company sold $648.7 million of AFS securities in 2023, resulting in a realized loss of $67.4 million, and reinvested the proceeds into higher-yielding securities with an average yield increase of 350 basis points[559] - Securities pledged as collateral for public deposits and other purposes totaled $6,190 million as of December 31, 2023, representing 89.9% of total securities[562] - The municipal bond portfolio as of December 31, 2023, had a carrying amount of $1.0 billion, with an average rating of AA and 100% of the portfolio rated A or better[566] - The corporate bond portfolio as of December 31, 2023, had a carrying amount of $52.4 million, primarily consisting of subordinated debentures of banks within the company's footprint[568] - Unrealized losses on AFS debt securities as of December 31, 2023, totaled $216 million, with 84.7% of these securities backed or sponsored by the U.S. government[564] - The company evaluated AFS debt securities in an unrealized loss position and concluded that the losses are temporary and caused by interest rate movements, with no expected credit losses[564] - The municipal bond portfolio is geographically concentrated, with 60% of the securities from municipalities in the company's primary business states[566] - The average holding size of securities in the municipal bond portfolio is $2.5 million, and 61% of the bonds have formal credit enhancement[566] - The average holding size of securities in the corporate bond portfolio is $2.9 million[568] - The ACL on the HTM corporate bond portfolio was $0.28 million as of December 31, 2023, with $0.06 million related to the municipal bond portfolio and $0.22 million related to other debt securities[570] - Total non-marketable equity securities increased to $361 million in 2023 from $268 million in 2022, driven by growth in Federal Home Loan Bank stock and Federal Reserve Bank stock[573] Acquisitions and Mergers - The acquisition of Howard Bancorp, Inc. was completed on January 22, 2022, with assets valued at approximately $2.4 billion, including $1.8 billion in loans and deposits. The acquisition was valued at $443 million and resulted in the issuance of 34,074,495 shares of common stock[544] - The acquisition of Union Bancorp was completed on December 9, 2022, with assets valued at approximately $1.1 billion, including $0.7 billion in loans and $1.0 billion in deposits. The acquisition was valued at $126 million and resulted in the issuance of 9,672,691 shares of common stock[549] - Goodwill related to the Howard acquisition was recorded at $177 million, and goodwill related to the Union acquisition was recorded at $38 million[555] - The company incurred merger expenses of $31.0 million in 2022 related to the Howard acquisition and $14.3 million in 2022 and $2.2 million in 2023 related to the Union acquisition[546][551] - The company acquired PCD loans and leases of $186.9 million from Howard and $36.9 million from Union, with ACLs established at $10.0 million and $1.8 million, respectively[547][552] - The company integrated the systems and operating activities of Howard in February 2022 and Union in December 2022, making it impracticable to disclose revenue and income before taxes from these acquisitions[548][553] Other Financial Metrics - Total non-interest income decreased to $254 million in 2023 from $323 million in 2022, a 21.4% decline[456] - Total non-interest expense increased to $915 million in 2023 from $826 million in 2022, a 10.8% rise[456] - Net cash flows from operating activities in 2023 were $423 million, a significant decrease from $1,218 million in 2022[459] - Net change in loans and leases for 2023 was a decrease of $2,442 million, compared to a decrease of $2,831 million in 2022[459] - Debt securities available for sale purchases in 2023 totaled $1,008 million, up from $880 million in 2022[459] - Time deposits increased by $2,600 million in 2023, compared to an increase of $366 million in 2022[459] - The company operates 346 branches across seven states and the District of Columbia as of December 31, 2023[461] - The company adopted ASU 2022-02 on January 1, 2023, which eliminated troubled debt restructuring accounting and expanded loan modification disclosures[470] - HTM debt securities are carried at amortized cost, with certain securities assumed to have zero expected credit losses based on historical data and credit ratings[478] - AFS debt securities are evaluated for impairment related to credit losses at least quarterly, considering all relevant information at the individual security level[479] - AFS debt securities in an unrealized loss position are evaluated for credit losses, with impairment recorded through the ACL if the fair value is less than the amortized cost basis[480] - Changes in the ACL are recorded as a provision for credit loss expense, with losses charged against the ACL when AFS debt securities are not collectible[481] - Securities sold under agreements to repurchase are accounted for as collateralized financing transactions, with the fair value of collateral continually monitored[482] - Derivative instruments are carried at fair value on the Consolidated Balance Sheets, with changes in fair value recorded in AOCI for cash flow hedges[483][484] - Interest rate swap agreements are used to manage interest rate risk, with changes in fair value recognized in current period earnings[486] - Residential mortgage loans held for sale are accounted for under the FVO, with changes in fair value recorded in mortgage banking operations non-interest income[487] - SBA loans originated with the intention to sell are classified as held for sale and carried at the lower of cost or fair value[489] - Non-performing loans are placed on non-accrual status when principal or interest remains unpaid for a certain number of days, with unpaid accrued interest reversed against interest income[491] - The ACL on loans and leases is estimated using a non-discounted cash flow factor-based approach, including PD, LGD, and EAD models[494][496] - Goodwill and other intangible assets are amortized over their estimated useful lives, with core deposit intangibles primarily amortized over ten years[506] - Goodwill and other intangibles are subject to impairment testing at least annually, with quarterly assessments based on qualitative factors such as macroeconomic conditions and financial performance[507][508] - The fair value of reporting units is determined using discounted cash flows, market comparisons, and recent transactions, involving significant estimates and assumptions[509] - Servicing rights for residential mortgage loans and SBA-guaranteed loans are initially recorded at fair value and subsequently measured at the lower of cost or fair value, with impairment evaluated quarterly[510][511][512] - Bank Owned Life Insurance policies are recorded at their cash surrender value, with tax-exempt income from death benefits recorded as non-interest income[513] - Investments in Low Income Housing Tax Credit Partnerships are recorded in other assets, generating returns through federal tax credits[514] - Lease obligations and right-of-use assets are recognized on the Consolidated Balance Sheets, with lease expense recognized on a straight-line basis for operating leases[515][516] - Revenue from contracts with customers is recognized when control of services is transferred, with deposit services revenue recognized daily based on published fees[519][520][522] - Wealth management services revenue is recognized monthly based on fixed fees or asset-based scales, with the right to terminate services at any time[525] - Income tax expense is based on estimates and judgments, with deferred tax assets and liabilities computed using expected tax rates[529][530] - Stock-based compensation awards are measured and recognized based on estimated fair values, with expense recognized over the service period[537][538] - Mortgage loans sold with servicing retained increased to $5,729 million at December 31, 2023, from $5,242 million at December 31, 2022[611] - Mortgage servicing fees for 2023 were $14 million, compared to $13 million in 2022[612] - MSR balance at end of 2023 was $59.5 million,

Financial Data and Key Metrics Changes - The company reported a fourth quarter net income available to common shareholders of $49 million and an operating income of $139 million, with full-year 2023 operating performance highlighted by record revenue of $1.6 billion and record net income of $569 million [80][102] - Tangible book value per share increased 15% year-over-year to a record high of $9.47, approaching the $10 milestone [80][104] - The cumulative deposit beta was reported at 34.3%, with spot deposit costs ending the year below 2%, outperforming peers by over 50 basis points [81][117] Business Line Data and Key Metrics Changes - Total loans and leases ended the year at a record $32.8 billion, an increase of $2.4 billion since year-end 2022, with strong loan production across commercial and consumer segments [75][115] - Operating non-interest income totaled $80.4 million, with mortgage banking operations income increasing by $3.1 million linked quarter due to improved gain on sale margins [91] Market Data and Key Metrics Changes - The company maintained a stable deposit base with total deposits ending the year at $34.7 billion, unchanged from the prior year despite elevated competition [81][117] - The efficiency ratio for the fourth quarter was reported at 52.5%, with a full-year efficiency ratio of 51.2%, demonstrating effective cost management [121] Company Strategy and Development Direction - The company aims to enhance customer experience by integrating business loans, deposits, and payments into the Common application in the eStore, allowing simultaneous applications for multiple products [74] - Strategic investments in delivery channels and digital tools are expected to deepen customer relationships and increase market share [82][108] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued loan growth despite economic challenges, with expectations for mid-single-digit growth in loans and low-single-digit growth in deposits for 2024 [105][106] - The company plans to closely monitor macroeconomic trends and manage risks proactively, maintaining a balanced portfolio throughout economic cycles [98][101] Other Important Information - The company completed the sale of approximately $650 million of available-for-sale securities and transferred $355 million of indirect auto loans to held for sale, which is expected to enhance future profitability [89][96] - Total delinquency across the portfolio was reported at 89 basis points, with consistent performance across the portfolio and prudent underwriting practices [59][76] Q&A Session Summary Question: What is the expected impact of deposit beta on net interest income? - Management indicated that cumulative deposit beta is expected to peak around 35%, with active management of the deposit book and pricing strategies in place [17][118] Question: How does the company view loan growth prospects? - Management expressed confidence in achieving mid to high single-digit loan growth, supported by strong commercial pipelines and strategic pricing adjustments [9][26] Question: What are the expectations for non-interest income in 2024? - Non-interest income is projected to benefit from diversified fee-based strategies, with full-year results expected between $325 million and $345 million [106][107] Question: How is the company managing its commercial real estate portfolio? - Management highlighted proactive risk management strategies and consistent underwriting practices, with low delinquency rates in the non-owner-occupied CRE portfolio [86][152]

4Q22 રે दे 403 42 28 447 458 discount of acquired loans (non-GAAP) $ 32,323 $ 30,673 discount of acquired loans / total loans and leases (non-GAAP) 1.48 % Allowance for credit losses on loans and leases / total loans and 1.32 % leases Net loan charge-offs Cautionary Statement Regarding Forward-Looking Information FNB's forward-looking statements are subject to the following principal risks and uncertainties: • Our business, financial results and balance sheet values are affected by business, economic and po ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 For the transition period from to Commission file number 001-31940 F.N.B. CORPORATION (Exact name of registrant as specified in its charter) | Pennsylvania | | | | 25-1255406 | | --- | --- ...

PART I – FINANCIAL INFORMATION [Glossary of Acronyms and Terms](index=4&type=section&id=Glossary%20of%20Acronyms%20and%20Terms) This section defines key financial and regulatory terms, aiding comprehension of the report's content - The glossary defines key financial and regulatory terms such as **ACL** (Allowance for credit losses), **AFS** (Available for sale), **CECL** (Current expected credit losses), **FDIC** (Federal Deposit Insurance Corporation), **GAAP** (U.S. generally accepted accounting principles), **MD&A** (Management's Discussion and Analysis), **SEC** (Securities and Exchange Commission), **SOFR** (Secured Overnight Financing Rate), and **TDR** (Troubled debt restructuring)[11](index=11&type=chunk) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This item presents F.N.B. Corporation's unaudited consolidated financial statements for the period ended June 30, 2023, including balance sheets, income statements, and cash flows [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show FNB's financial position at June 30, 2023, with increased total assets and equity, and decreased total deposits Consolidated Balance Sheets (Millions $) | Metric | June 30, 2023 (Millions $) | December 31, 2022 (Millions $) | Change ($M) | Change (%) | | :--------------------------------- | :-------------------------- | :--------------------------- | :---------- | :--------- | | Total Assets | 44,778 | 43,725 | 1,053 | 2.41% | | Net Loans and Leases | 30,941 | 29,853 | 1,088 | 3.64% | | Total Deposits | 33,825 | 34,770 | (945) | -2.72% | | Total Liabilities | 38,960 | 38,072 | 888 | 2.33% | | Total Stockholders' Equity | 5,818 | 5,653 | 165 | 2.92% | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Income statements reveal significant year-over-year growth in net interest income and net income for Q2 and H1 2023, despite rising expenses Consolidated Statements of Income (3 Months Ended June 30, Millions $) | Metric | 3 Months Ended June 30, 2023 ($M) | 3 Months Ended June 30, 2022 ($M) | Change ($M) | Change (%) | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Total Interest Income | 484 | 280 | 204 | 72.86% | | Total Interest Expense | 155 | 26 | 129 | 496.15% | | Net Interest Income | 329 | 254 | 75 | 29.53% | | Provision for credit losses | 19 | 6 | 13 | 216.67% | | Total Non-Interest Income | 81 | 82 | (1) | -1.22% | | Total Non-Interest Expense | 212 | 193 | 19 | 9.84% | | Net Income | 142 | 109 | 33 | 30.28% | | Net Income Available to Common Stockholders | 140 | 107 | 33 | 30.84% | | Diluted EPS | 0.39 | 0.30 | 0.09 | 30.00% | Consolidated Statements of Income (6 Months Ended June 30, Millions $) | Metric | 6 Months Ended June 30, 2023 ($M) | 6 Months Ended June 30, 2022 ($M) | Change ($M) | Change (%) | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Total Interest Income | 928 | 534 | 394 | 73.78% | | Total Interest Expense | 262 | 46 | 216 | 469.57% | | Net Interest Income | 666 | 488 | 178 | 36.48% | | Provision for credit losses | 33 | 24 | 9 | 37.50% | | Total Non-Interest Income | 160 | 160 | 0 | 0.00% | | Total Non-Interest Expense | 432 | 420 | 12 | 2.86% | | Net Income | 289 | 162 | 127 | 78.40% | | Net Income Available to Common Stockholders | 285 | 158 | 127 | 80.38% | | Diluted EPS | 0.78 | 0.45 | 0.33 | 73.33% | [Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income improved significantly for Q2 and H1 2023, driven by reduced unrealized losses on available-for-sale securities Consolidated Statements of Comprehensive Income (Loss) (3 Months Ended June 30, Millions $) | Metric | 3 Months Ended June 30, 2023 ($M) | 3 Months Ended June 30, 2022 ($M) | Change ($M) | Change (%) | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Net Income | 142 | 109 | 33 | 30.28% | | Other Comprehensive Income (Loss) | (40) | (50) | 10 | 20.00% | | Comprehensive Income (Loss) | 102 | 59 | 43 | 72.88% | Consolidated Statements of Comprehensive Income (Loss) (6 Months Ended June 30, Millions $) | Metric | 6 Months Ended June 30, 2023 ($M) | 6 Months Ended June 30, 2022 ($M) | Change ($M) | Change (%) | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Net Income | 289 | 162 | 127 | 78.40% | | Other Comprehensive Income (Loss) | 2 | (190) | 192 | 101.05% | | Comprehensive Income (Loss) | 291 | (28) | 319 | 1139.29% | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased from December 2022 to June 2023, primarily due to comprehensive income, partially offset by dividends Consolidated Statements of Stockholders' Equity (Millions $) | Metric | June 30, 2023 ($M) | December 31, 2022 ($M) | Change ($M) | Change (%) | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Total Stockholders' Equity (End of Period) | 5,818 | 5,653 | 165 | 2.92% | | Retained Earnings (6 Months Ended) | 1,564 | 1,370 | 194 | 14.16% | | Accumulated Other Comprehensive Loss (6 Months Ended) | (355) | (357) | 2 | 0.56% | | Treasury Stock (6 Months Ended) | (188) | (167) | (21) | 12.57% | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased for H1 2023, driven by financing activities offsetting cash used in investing activities Consolidated Statements of Cash Flows (Millions $) | Metric | 6 Months Ended June 30, 2023 ($M) | 6 Months Ended June 30, 2022 ($M) | Change ($M) | Change (%) | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :---------- | :--------- | | Net cash flows (used in) provided by operating activities | 149 | 692 | (543) | -78.47% | | Net cash flows (used in) provided by investing activities | (953) | (1,588) | 635 | 40.00% | | Net cash flows provided by (used in) financing activities | 834 | (568) | 1,402 | 246.83% | | Net Increase (Decrease) in Cash and Cash Equivalents | 30 | (1,464) | 1,494 | 102.05% | | Cash and Cash Equivalents at End of Period | 1,704 | 2,029 | (325) | -16.02% | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on FNB's accounting policies, mergers, securities, loans, and other financial statement components [NATURE OF OPERATIONS](index=11&type=section&id=NATURE%20OF%20OPERATIONS) FNB is a diversified financial services company operating across seven states, offering commercial, consumer, and wealth management solutions - F.N.B. Corporation operates in **seven states and D.C.**, with **346 branches** as of June 30, 2023[21](index=21&type=chunk) - The company provides commercial banking (corporate, small business, real estate, capital markets, lease financing), consumer banking (deposits, mortgages, lending, mobile/online services), and wealth management (asset management, private banking, insurance)[22](index=22&type=chunk) [NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=11&type=section&id=NOTE%201.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the basis of presentation, consolidation principles, and the use of estimates in FNB's financial statements - The financial statements consolidate entities where FNB has a controlling financial interest or is the primary beneficiary of a Variable Interest Entity (VIE)[23](index=23&type=chunk)[24](index=24&type=chunk) - Preparation of financial statements requires significant estimates and assumptions, particularly for **Allowance for Credit Losses (ACL)**, fair value of financial instruments, goodwill, intangible assets, income taxes, deferred tax assets, and litigation reserves[27](index=27&type=chunk) [NOTE 2. NEW ACCOUNTING STANDARDS](index=12&type=section&id=NOTE%202.%20NEW%20ACCOUNTING%20STANDARDS) FNB adopted ASU 2022-02 with no material impact and is assessing ASU 2023-02 for potential future financial statement effects - FNB adopted **ASU 2022-02** (Troubled Debt Restructurings and Vintage Disclosures) on January 1, 2023, with **no material impact** on consolidated financial statements[29](index=29&type=chunk) - FNB is reviewing **ASU 2023-02** (Tax Equity Investments) for its potential impact, with an effective date of January 1, 2024. This update expands the proportional amortization method to other tax credit structures[29](index=29&type=chunk) [NOTE 3. MERGERS AND ACQUISITIONS](index=13&type=section&id=NOTE%203.%20MERGERS%20AND%20ACQUISITIONS) FNB completed acquisitions of Howard Bancorp and UB Bancorp in 2022, expanding its market presence and adding assets and deposits - FNB acquired **Howard Bancorp, Inc.** in January 2022 for approximately **$443 million**, issuing **34,074,495 common shares**. The acquisition added **$2.4 billion in assets**, including **$1.8 billion in loans and deposits**, and resulted in **$177 million in goodwill**[31](index=31&type=chunk)[33](index=33&type=chunk)[43](index=43&type=chunk) - FNB acquired **UB Bancorp (Union)** in December 2022 for approximately **$126 million**, issuing **9,672,691 common shares**. The acquisition added **$1.1 billion in assets**, including **$0.7 billion in loans and $1.0 billion in deposits**, and resulted in **$38 million in goodwill and $41 million in core deposit intangibles**[36](index=36&type=chunk)[39](index=39&type=chunk)[43](index=43&type=chunk) Acquired Assets & Liabilities (Millions $) | Acquired Assets & Liabilities (in millions) | Howard | Union | | :---------------------------------------- | :----- | :---- | | Fair value of consideration paid | $443 | $126 | | Cash and cash equivalents | $75 | $113 | | Securities | $321 | $212 | | Loans | $1,780 | $652 | | Core deposit and other intangible assets | $19 | $41 | | Fixed and other assets | $156 | $59 | | Deposits | $1,831 | $956 | | Borrowings | $247 | $30 | | Other liabilities | $7 | $3 | | Goodwill recognized | $177 | $38 | [NOTE 4. SECURITIES](index=15&type=section&id=NOTE%204.%20SECURITIES) FNB's debt securities portfolio experienced unrealized losses due to rising interest rates, with most securities backed by the U.S. government Debt Securities AFS (Millions $) | Debt Securities AFS (in millions) | June 30, 2023 | December 31, 2022 | | :-------------------------------- | :------------ | :---------------- | | Amortized Cost | $3,519 | $3,622 | | Fair Value | $3,177 | $3,275 | | Gross Unrealized Losses | $(343) | $(348) | Debt Securities HTM (Millions $) | Debt Securities HTM (in millions) | June 30, 2023 | December 31, 2022 | | :-------------------------------- | :------------ | :---------------- | | Amortized Cost | $3,988 | $4,087 | | Fair Value | $3,587 | $3,687 | | Gross Unrealized Losses | $(402) | $(403) | - Unrealized losses on AFS and HTM portfolios are primarily due to increased market interest rates, with **84.6% of securities backed or sponsored by the U.S. government**, indicating temporary losses not reflecting expected credit losses[47](index=47&type=chunk)[52](index=52&type=chunk)[54](index=54&type=chunk) - The municipal bond portfolio (**$1.1 billion**) has an average rating of **AA**, with **100% rated A or better**, and **61% having formal credit enhancement**. The corporate bond portfolio (**$46.7 million**) primarily consists of subordinated debentures of banks[56](index=56&type=chunk)[58](index=58&type=chunk) [NOTE 5. LOANS AND LEASES](index=20&type=section&id=NOTE%205.%20LOANS%20AND%20LEASES) Total loans and leases increased to $31.35 billion, with commercial real estate and residential mortgages as largest segments, and non-performing loans rising Loan Category (Millions $) | Loan Category (in millions) | June 30, 2023 | December 31, 2022 | Change ($M) | Change (%) | | :-------------------------- | :------------ | :---------------- | :---------- | :--------- | | Commercial real estate | $11,689 | $11,526 | $163 | 1.41% | | Commercial and industrial | $7,248 | $7,131 | $117 | 1.64% | | Residential mortgages | $6,089 | $5,297 | $792 | 14.95% | | Total loans and leases | $31,354 | $30,255 | $1,099 | 3.63% | - Non-performing loans and leases increased to **$143 million** at June 30, 2023, from **$113 million** at December 31, 2022, primarily due to a single commercial and industrial loan downgraded to non-accrual status[77](index=77&type=chunk) Non-Performing Assets (Millions $) | Non-Performing Assets (in millions) | June 30, 2023 | December 31, 2022 | Change ($M) | Change (%) | | :---------------------------------- | :------------ | :---------------- | :---------- | :--------- | | Non-accrual loans | $143 | $113 | $30 | 26.55% | | Other real estate owned | $5 | $6 | $(1) | -16.67% | | Total non-performing assets | $148 | $119 | $29 | 24.37% | - Loan modifications for borrowers experiencing financial difficulty primarily involved term extensions, with a total amortized cost basis of **$14.5 million** for the three months ended June 30, 2023, and **$18.4 million** for the six months ended June 30, 2023[80](index=80&type=chunk)[81](index=81&type=chunk) [NOTE 6. ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES](index=31&type=section&id=NOTE%206.%20ALLOWANCE%20FOR%20CREDIT%20LOSSES%20ON%20LOANS%20AND%20LEASES) ACL on loans and leases increased to $412.7 million due to loan growth and a specific reserve, with stable coverage ratio ACL on Loans and Leases (Millions $) | Metric (in millions) | June 30, 2023 | December 31, 2022 | Change ($M) | Change (%) | | :------------------- | :------------ | :---------------- | :---------- | :--------- | | ACL on loans and leases | $412.7 | $401.7 | $11.0 | 2.74% | | ACL coverage ratio | 1.32% | 1.33% | -0.01% | -0.75% | Provision for Credit Losses and Net Charge-offs (3 Months Ended June 30, Millions $) | Metric (in millions) | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | Change ($M) | Change (%) | | :------------------- | :----------------------------- | :----------------------------- | :---------- | :--------- | | Total provision for credit losses | $18.5 | $6.4 | $12.1 | 189.06% | | Net charge-offs | $8.7 | $(0.4) | $9.1 | 2275.00% | Provision for Credit Losses and Net Charge-offs (6 Months Ended June 30, Millions $) | Metric (in millions) | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | Change ($M) | Change (%) | | :------------------- | :----------------------------- | :----------------------------- | :---------- | :--------- | | Total provision for credit losses | $32.6 | $24.4 | $8.2 | 33.61% | | Net charge-offs | $21.9 | $1.5 | $20.4 | 1360.00% | - The increase in provision for credit losses was primarily due to loan growth and a **$13 million specific reserve** for a single commercial and industrial loan downgraded to non-performing status[98](index=98&type=chunk) [NOTE 7. LOAN SERVICING](index=34&type=section&id=NOTE%207.%20LOAN%20SERVICING) FNB's mortgage servicing rights (MSRs) increased in fair value, highly sensitive to interest rate changes, with no valuation allowance Mortgage Loans Sold with Servicing Retained (Millions $) | Metric (in millions) | June 30, 2023 | December 31, 2022 | Change ($M) | Change (%) | | :------------------- | :------------ | :---------------- | :---------- | :--------- | | Mortgage loans sold with servicing retained | $5,435 | $5,242 | $193 | 3.68% | Mortgage Servicing Rights (MSRs) (Millions $) | Metric (in millions) | June 30, 2023 | June 30, 2022 | Change ($M) | Change (%) | | :------------------- | :------------ | :------------ | :---------- | :--------- | | MSRs Balance at end of period | $55.7 | $50.7 | $5.0 | 9.86% | | MSRs Fair value, end of period | $72.1 | $64.1 | $8.0 | 12.48% | - The fair value of MSRs is highly sensitive to changes in prepayment rates, which are inversely related to interest rates. An increase in interest rates generally increases MSR fair value, while a decrease reduces it[103](index=103&type=chunk)[105](index=105&type=chunk) [NOTE 8. LEASES](index=35&type=section&id=NOTE%208.%20LEASES) FNB holds operating and finance leases for branches and equipment, with new operating leases expected to commence in 2023 Lease Assets and Liabilities (Millions $) | Lease Type (in millions) | Right-of-Use Assets (June 30, 2023) | Lease Liabilities (June 30, 2023) | | :----------------------- | :---------------------------------- | :-------------------------------- | | Operating leases | $134.7 | $144.7 | | Finance leases | $28.7 | $29.5 | - FNB expects to add approximately **$76.4 million** in right-of-use assets and **$97.8 million** in other liabilities from new operating leases, including a new headquarters building, commencing throughout the remainder of 2023[107](index=107&type=chunk) Lease Cost (Millions $) | Lease Cost (in millions) | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :----------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Operating lease cost | $8 | $8 | $16 | $16 | | Finance lease cost | $1 | $0 | $2 | $0 | | Total lease cost | $10 | $9 | $20 | $18 | [NOTE 9. VARIABLE INTEREST ENTITIES](index=37&type=section&id=NOTE%209.%20VARIABLE%20INTEREST%20ENTITIES) FNB holds interests in unconsolidated VIEs, primarily TPS and Affordable Housing Tax Credit Partnerships, with a maximum exposure to loss of $153 million Unconsolidated VIEs (Millions $) | Unconsolidated VIEs (in millions) | Total Assets (June 30, 2023) | Maximum Exposure to Loss (June 30, 2023) | | :-------------------------------- | :--------------------------- | :--------------------------------------- | | Trust preferred securities | $1 | $0 | | Affordable housing tax credit partnerships | $117 | $117 | | Other investments | $36 | $36 | | Total | $154 | $153 | - FNB's investments in Affordable Housing Tax Credit Partnerships are accounted for using the proportional amortization method, impacting the provision for income taxes[118](index=118&type=chunk)[120](index=120&type=chunk) [NOTE 10. BORROWINGS](index=38&type=section&id=NOTE%2010.%20BORROWINGS) Total borrowings significantly increased to $4.372 billion, driven by FHLB advances to maintain liquidity, and senior note issuance Borrowing Type (Millions $) | Borrowing Type (in millions) | June 30, 2023 | December 31, 2022 | Change ($M) | Change (%) | | :--------------------------- | :------------ | :---------------- | :---------- | :--------- | | Short-term borrowings | $2,391 | $1,372 | $1,019 | 74.27% | | Long-term borrowings | $1,981 | $1,093 | $888 | 81.24% | | Total borrowings | $4,372 | $2,465 | $1,907 | 77.36% | - The increase in borrowings is primarily due to increased **FHLB advances**, with **$2.0 billion in short-term** and **$1.2 billion in long-term advances** at June 30, 2023, utilized to maintain additional liquidity following banking industry disruption[123](index=123&type=chunk)[126](index=126&type=chunk) - FNB issued **$350 million of 5.150% fixed-rate senior notes** in August 2022 and repurchased **$15.0 million in other subordinated debt** in Q2 2023[124](index=124&type=chunk)[125](index=125&type=chunk) [NOTE 11. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES](index=41&type=section&id=NOTE%2011.%20DERIVATIVE%20INSTRUMENTS%20AND%20HEDGING%20ACTIVITIES) FNB uses derivatives, mainly interest rate contracts, to manage interest rate risk and facilitate customer transactions, not for trading - FNB uses derivative instruments to reduce the effects of interest rate changes on net income and cash flows, and to facilitate customer transactions, not for trading or speculative purposes[133](index=133&type=chunk) Gross Derivatives (Millions $) | Gross Derivatives (in millions) | Notional Amount (June 30, 2023) | Fair Value Asset (June 30, 2023) | Fair Value Liability (June 30, 2023) | | :------------------------------ | :------------------------------ | :------------------------------- | :--------------------------------- | | Subject to master netting arrangements | $7,375 | $96 | $8 | | Not subject to master netting arrangements | $6,469 | $7 | $380 | | Total | $13,844 | $103 | $388 | - Derivatives designated as cash flow hedges (interest rate contracts) initially report gains/losses in OCI, then reclassify to earnings. Non-designated derivatives (interest rate swaps, lock commitments, forward delivery, credit risk contracts) impact current period earnings[134](index=134&type=chunk)[137](index=137&type=chunk)[143](index=143&type=chunk)[145](index=145&type=chunk) [NOTE 12. COMMITMENTS, CREDIT RISK AND CONTINGENCIES](index=44&type=section&id=NOTE%2012.%20COMMITMENTS,%20CREDIT%20RISK%20AND%20CONTINGENCIES) FNB has off-balance sheet commitments totaling $13.416 billion and is involved in legal proceedings, with no material adverse effect anticipated Off-Balance Sheet Credit Risk (Millions $) | Off-Balance Sheet Credit Risk (in millions) | June 30, 2023 | December 31, 2022 | Change ($M) | Change (%) | | :---------------------------------------- | :------------ | :---------------- | :---------- | :--------- | | Commitments to extend credit | $13,416 | $13,250 | $166 | 1.25% | | Standby letters of credit | $230 | $207 | $23 | 11.11% | - The **AULC** for non-cancellable commitments was **$21.0 million** at June 30, 2023, slightly down from **$21.4 million** at December 31, 2022[154](index=154&type=chunk) - FNB is routinely involved in legal proceedings and regulatory matters; while significant monetary damages or sanctions may be sought, management does not believe they will have a material adverse effect on financial position or liquidity, though they could impact net income in a given period[156](index=156&type=chunk)[157](index=157&type=chunk) [NOTE 13. STOCK INCENTIVE PLANS](index=45&type=section&id=NOTE%2013.%20STOCK%20INCENTIVE%20PLANS) FNB issues restricted stock awards to employees, with $13 million in stock-based compensation expense for H1 2023 - FNB granted **1,354,017 restricted stock units** during the six months ended June 30, 2023, and had **3,674,862 unvested units** outstanding at period-end[158](index=158&type=chunk)[161](index=161&type=chunk) Stock-based Compensation (Millions $) | Metric (in millions) | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :------------------- | :----------------------------- | :----------------------------- | | Stock-based compensation expense | $13 | $12 | | Tax benefit | $3 | $3 | | Fair value of units vested | $30 | $21 | - All outstanding stock options (**107,823** at June 30, 2023) were assumed from acquisitions and are fully vested, with an intrinsic value of **$0.2 million**[164](index=164&type=chunk)[165](index=165&type=chunk) [NOTE 14. INCOME TAXES](index=47&type=section&id=NOTE%2014.%20INCOME%20TAXES) Income tax expense increased to $72 million for H1 2023 due to higher pre-tax earnings, with a slightly decreased effective tax rate Income Taxes (Millions $) | Metric (in millions) | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Total income taxes | $37 | $28 | $72 | $42 | | Effective tax rate | 20.5% | 20.1% | 20.0% | 20.4% | | Statutory federal tax rate | 21.0% | 21.0% | 21.0% | 21.0% | - The effective tax rate is lower than the statutory rate due to tax-exempt income, tax credits, and income from BOLI. The decrease in the effective tax rate for the six months ended June 30, 2023, was primarily due to higher deduction levels from employee stock compensation vesting[166](index=166&type=chunk) [NOTE 15. OTHER COMPREHENSIVE INCOME (LOSS)](index=48&type=section&id=NOTE%2015.%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) Accumulated other comprehensive loss improved slightly to $(355) million, driven by changes in unrealized gains/losses on securities Other Comprehensive Income (Loss) (Millions $) | Metric (in millions) | 6 Months Ended June 30, 2023 | | :------------------- | :----------------------------- | | Balance at beginning of period | $(357) | | Other comprehensive (loss) income before reclassifications | $(5) | | Amounts reclassified from AOCI | $7 | | Net current period other comprehensive (loss) income | $2 | | Balance at end of period | $(355) | - Amounts reclassified from AOCI related to debt securities AFS are included in net securities gains, while those from derivative instruments in cash flow hedge programs are generally included in interest income on loans and leases[168](index=168&type=chunk) [NOTE 16. EARNINGS PER COMMON SHARE](index=48&type=section&id=NOTE%2016.%20EARNINGS%20PER%20COMMON%20SHARE) FNB reported significant year-over-year growth in basic and diluted EPS for Q2 and H1 2023, reaching $0.78 diluted EPS for H1 Earnings Per Common Share (Millions $) | Metric | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Net income available to common stockholders ($M) | $140 | $107 | $285 | $158 | | Basic EPS | $0.39 | $0.30 | $0.79 | $0.45 | | Diluted EPS | $0.39 | $0.30 | $0.78 | $0.45 | - Basic EPS is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding, while diluted EPS adjusts for the dilutive effect of potential common shares[169](index=169&type=chunk)[170](index=170&type=chunk) [NOTE 17. CASH FLOW INFORMATION](index=49&type=section&id=NOTE%2017.%20CASH%20FLOW%20INFORMATION) Supplemental cash flow information for H1 2023 includes $238 million in interest paid and $67 million in income taxes paid Cash Flow Information (Millions $) | Metric (in millions) | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :------------------- | :----------------------------- | :----------------------------- | | Interest paid | $238 | $45 | | Income taxes paid | $67 | $35 | | Transfers of loans to OREO | $1 | $1 | | Loans transferred to portfolio from held for sale | $26 | $0 | - No restricted cash was held as of June 30, 2023, or 2022[172](index=172&type=chunk) [NOTE 18. BUSINESS SEGMENTS](index=49&type=section&id=NOTE%2018.%20BUSINESS%20SEGMENTS) FNB operates in Community Banking, Wealth Management, and Insurance segments, with Community Banking being the largest contributor to income - FNB operates in three reportable segments: **Community Banking** (commercial and consumer banking), **Wealth Management** (fiduciary, brokerage, investment advisory), and **Insurance** (commercial and personal insurance brokerage, reinsurer)[174](index=174&type=chunk)[176](index=176&type=chunk) Segment Performance (3 Months Ended June 30, 2023, Millions $) | Segment Performance (3 Months Ended June 30, 2023, in millions) | Community Banking | Wealth Management | Insurance | Parent and Other | Consolidated | | :------------------------------------------------------------ | :---------------- | :---------------- | :-------- | :--------------- | :----------- | | Interest income | $483 | $0 | $0 | $1 | $484 | | Net interest income | $336 | $0 | $0 | $(7) | $329 | | Non-interest income | $57 | $18 | $7 | $(1) | $81 | | Net income (loss) | $143 | $4 | $1 | $(6) | $142 | | Total assets | $44,629 | $39 | $32 | $78 | $44,778 | Segment Performance (6 Months Ended June 30, 2023, Millions $) | Segment Performance (6 Months Ended June 30, 2023, in millions) | Community Banking | Wealth Management | Insurance | Parent and Other | Consolidated | | :------------------------------------------------------------ | :---------------- | :---------------- | :-------- | :--------------- | :----------- | | Interest income | $925 | $0 | $0 | $3 | $928 | | Net interest income | $680 | $0 | $0 | $(14) | $666 | | Non-interest income | $112 | $36 | $14 | $(2) | $160 | | Net income (loss) | $290 | $8 | $4 | $(13) | $289 | | Total assets | $44,629 | $39 | $32 | $78 | $44,778 | [NOTE 19. FAIR VALUE MEASUREMENTS](index=52&type=section&id=NOTE%2019.%20FAIR%20VALUE%20MEASUREMENTS) FNB measures assets and liabilities at fair value using Level 1 and Level 2 inputs for recurring items, and Level 3 for non-recurring items Assets Measured at Fair Value (June 30, 2023, Millions $) | Assets Measured at Fair Value (June 30, 2023, in millions) | Level 1 | Level 2 | Level 3 | Total | | :------------------------------------------------------- | :------ | :------ | :------ | :---- | | Debt securities available for sale | $306 | $2,871 | $0 | $3,177 | | Loans held for sale | $0 | $82 | $0 | $82 | | Derivative financial instruments | $0 | $103 | $0 | $103 | | Total assets measured at fair value on a recurring basis | $306 | $3,056 | $0 | $3,362 | Liabilities Measured at Fair Value (June 30, 2023, Millions $) | Liabilities Measured at Fair Value (June 30, 2023, in millions) | Level 1 | Level 2 | Level 3 | Total | | :------------------------------------------------------------ | :------ | :------ | :------ | :---- | | Derivative financial instruments | $0 | $386 | $2 | $388 | | Total liabilities measured at fair value on a recurring basis | $0 | $386 | $2 | $388 | Assets Measured at Fair Value on a Non-Recurring Basis (June 30, 2023, Millions $) | Assets Measured at Fair Value on a Non-Recurring Basis (June 30, 2023, in millions) | Level 1 | Level 2 | Level 3 | Total | | :-------------------------------------------------------------------------------- | :------ | :------ | :------ | :---- | | Collateral dependent loans | $0 | $0 | $47 | $47 | | Other assets - SBA servicing asset | $0 | $0 | $2 | $2 | | Other real estate owned | $0 | $0 | $2 | $2 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=56&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses FNB's financial performance for Q2 and H1 2023, covering income, balance sheet, capital, liquidity, and market risk [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION](index=56&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20INFORMATION) This section warns that forward-looking statements are subject to various economic, regulatory, competitive, and operational risks and uncertainties - Forward-looking statements are subject to risks including U.S. and global financial market developments, governmental regulation, economic slowdowns, inflation, tariffs, and sociopolitical environments[195](index=195&type=chunk) - Other risks include managing business risks, competition, technological changes, unpredictable events (disasters, pandemics, geopolitical instability, cyber-attacks), and legal/regulatory developments (e.g., changes in accounting standards, capital requirements, enforcement actions)[195](index=195&type=chunk)[200](index=200&type=chunk) [APPLICATION OF CRITICAL ACCOUNTING POLICIES](index=57&type=section&id=APPLICATION%20OF%20CRITICAL%20ACCOUNTING%20POLICIES) FNB's critical accounting policies and estimates remain unchanged since December 31, 2022, as detailed in its 2022 Annual Report - No significant changes in critical accounting policies or the assumptions and judgments used in applying them have occurred since December 31, 2022[198](index=198&type=chunk) [USE OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE INDICATORS](index=57&type=section&id=USE%20OF%20NON-GAAP%20FINANCIAL%20MEASURES%20AND%20KEY%20PERFORMANCE%20INDICATORS) FNB uses non-GAAP measures like operating net income and tangible book value to provide clearer insights into performance and trends - Non-GAAP measures (e.g., operating net income, tangible book value, efficiency ratio FTE) are used to supplement GAAP results, providing insights into operating performance and trends, and facilitating peer comparisons[199](index=199&type=chunk) - Management believes certain items like merger expenses, initial provision for non-PCD loans, and branch consolidation costs are not organic to operations and are excluded from operating non-GAAP measures[202](index=202&type=chunk) [FINANCIAL SUMMARY](index=58&type=section&id=FINANCIAL%20SUMMARY) FNB reported strong Q2 2023 performance with increased net income, diluted EPS, tangible book value, and an improved efficiency ratio Financial Summary (Millions $) | Metric | Q2 2023 | Q2 2022 | Change (%) | | :--------------------------------------- | :------ | :------ | :--------- | | Net income available to common stockholders ($M) | $140.4 | $107.1 | 31.09% | | Net income per diluted common share | $0.39 | $0.30 | 30.00% | | Operating net income per diluted common share (non-GAAP) | $0.39 | $0.31 | 25.81% | | Book value per common share (period-end) | $15.92 | $15.19 | 4.81% | | Tangible book value per common share (non-GAAP) | $8.79 | $8.10 | 8.52% | | Common equity tier 1 | 10.1% | 9.7% | 4.12% | | Efficiency ratio (non-GAAP) | 50.0% | 55.2% | -9.42% | - Net interest income increased **$75.6 million (29.8%)** YoY, driven by earning asset growth and higher interest rates, but decreased **2.2%** QoQ due to accelerating deposit costs and migration to time deposits[207](index=207&type=chunk) - Period-end total loans and leases increased **$3.3 billion (11.8%)** YoY, with organic growth across diverse geographic footprint. On a linked-quarter basis, loans increased **$680.6 million (2.2%)**[210](index=210&type=chunk) - Period-end deposits decreased **$365.4 million (1.1%)** QoQ due to seasonal outflows and inflationary pressures. **77%** of deposits were FDIC-insured or collateralized[210](index=210&type=chunk) - The ratio of loans to deposits was **92.7%** (vs. 87.0% prior year), and non-interest-bearing deposits comprised **32%** of total deposits (vs. 34% prior year), reflecting a shift in funding mix[210](index=210&type=chunk) [Industry Developments](index=61&type=section&id=Industry%20Developments) The banking industry experienced disruption in March 2023, leading to federal intervention, while FNB maintained stable deposits and ample liquidity - Failures of Silicon Valley Bank, Signature Bank, and First Republic Bank in March-May 2023 led to federal government intervention, including full depositor protection and the creation of the **Bank Term Funding Program (BTFP)** for additional liquidity[212](index=212&type=chunk)[213](index=213&type=chunk) - FNB did not participate in the BTFP, maintaining stable deposit balances due to a granular deposit base (average customer deposit account balance **~$29,000**) and ample liquidity (estimated **140% coverage** of uninsured/non-collateralized deposits)[214](index=214&type=chunk) - The banking industry transitioned from **LIBOR to SOFR** as the primary benchmark interest rate, with FNB ceasing LIBOR-based loan originations by January 1, 2022, and completing remediation efforts for existing LIBOR-based loans by June 30, 2023[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk) [RESULTS OF OPERATIONS](index=62&type=section&id=RESULTS%20OF%20OPERATIONS) FNB's Q2 and H1 2023 results show significant net income and EPS growth, driven by net interest income, offset by increased expenses [Three Months Ended June 30, 2023 Compared to the Three Months Ended June 30, 2022](index=62&type=section&id=Three%20Months%20Ended%20June%2030,%202023%20Compared%20to%20the%20Three%20Months%20Ended%20June%2030,%202022) Q2 2023 net income available to common stockholders increased 31.0% to $140.4 million, driven by higher net interest income Results of Operations (3 Months Ended June 30, Millions $) | Metric | Q2 2023 ($M) | Q2 2022 ($M) | Change ($M) | Change (%) | | :--------------------------------- | :----------- | :----------- | :---------- | :--------- | | Net income available to common stockholders | $140.4 | $107.1 | $33.3 | 31.09% | | Diluted EPS | $0.39 | $0.30 | $0.09 | 30.00% | | Net interest income | $329.2 | $253.7 | $75.5 | 29.76% | | Provision for credit losses | $18.5 | $6.4 | $12.1 | 189.06% | | Non-interest income | $80.3 | $82.2 | $(1.9) | -2.31% | | Non-interest expense | $212.0 | $192.8 | $19.2 | 9.96% | - Net interest margin (FTE) increased **61 basis points to 3.37%**, as earning asset yields rose **189 basis points**, partially offset by a **134 basis-point increase** in total cost of funds[225](index=225&type=chunk) - Loan growth was strong, with average loans and leases increasing **$3.8 billion (14.0%)**, led by commercial real estate, commercial and industrial loans, and residential mortgages[228](index=228&type=chunk) - Interest expense increased **$127.9 million** due to higher rates on interest-bearing liabilities (up **187 bps to 2.32%**) and growth in average interest-bearing deposits and borrowings[231](index=231&type=chunk) - Non-interest expense increase was primarily driven by a **$10.1 million (9.7%) rise** in salaries and employee benefits due to production-related commissions, Union acquisition expense base, and merit increases[239](index=239&type=chunk) [Six Months Ended June 30, 2023 Compared to the Six Months Ended June 30, 2022](index=69&type=section&id=Six%20Months%20Ended%20June%2030,%202023%20Compared%20to%20the%20Six%20Months%20Ended%20June%2030,%202022) H1 2023 net income available to common stockholders surged 80.2% to $284.9 million, with strong net interest income growth Results of Operations (6 Months Ended June 30, Millions $) | Metric | H1 2023 ($M) | H1 2022 ($M) | Change ($M) | Change (%) | | :--------------------------------- | :----------- | :----------- | :---------- | :--------- | | Net income available to common stockholders | $284.9 | $158.1 | $126.8 | 80.20% | | Diluted EPS | $0.78 | $0.45 | $0.33 | 73.33% | | Net interest income | $665.9 | $487.8 | $178.1 | 36.51% | | Provision for credit losses | $32.6 | $24.4 | $8.2 | 33.61% | | Non-interest income | $159.7 | $160.5 | $(0.8) | -0.50% | | Non-interest expense | $431.9 | $420.2 | $11.7 | 2.78% | - Net interest margin (FTE) increased **77 basis points to 3.46%**, with earning asset yields rising **187 basis points to 4.81%**, primarily due to higher yields on variable-rate loans, investment securities, and interest-bearing deposits[253](index=253&type=chunk)[256](index=256&type=chunk) - Average loans and leases increased **$4.0 billion (14.9%)**, driven by organic origination and acquired Union loans, particularly in commercial and industrial, commercial real estate, and residential mortgages[256](index=256&type=chunk) - Interest expense increased **$215.2 million (461.9%)** due to the higher interest rate environment and a **$943.1 million (4.3%) increase** in average interest-bearing deposits, with time deposits increasing **$1.6 billion (55.3%)** as customer preferences shifted[258](index=258&type=chunk) - Operating non-interest expense (non-GAAP) increased **$44.3 million (11.5%)**, primarily due to annual merit increases, reduced salary deferrals, the Union acquisition expense base, and higher FDIC insurance costs[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk) [FINANCIAL CONDITION](index=77&type=section&id=FINANCIAL%20CONDITION) Total assets increased to $44.778 billion, driven by loan growth, while deposits decreased and borrowings significantly increased Financial Condition (Millions $) | Metric (in millions) | June 30, 2023 | December 31, 2022 | Change ($M) | Change (%) | | :------------------- | :------------ | :---------------- | :---------- | :--------- | | Total Assets | $44,778 | $43,725 | $1,053 | 2.41% | | Net Loans and Leases | $30,941 | $29,853 | $1,088 | 3.64% | | Total Deposits | $33,825 | $34,770 | $(945) | -2.72% | | Borrowings | $4,372 | $2,465 | $1,907 | 77.36% | | Non-performing assets | $148 | $119 | $29 | 24.37% | - Loan growth was led by residential mortgages (up **$792 million, 15.0%**) and commercial and industrial loans (up **$117 million, 1.6%**), particularly in Pittsburgh, Cleveland, and North Carolina markets[275](index=275&type=chunk)[276](index=276&type=chunk) - The increase in non-performing assets was primarily due to a single commercial and industrial loan downgraded to non-performing status during the quarter[277](index=277&type=chunk) - Total deposits decreased due to normal seasonal declines in public funds, seasonal income tax payments, and inflationary pressures, with a shift towards certificates of deposits[281](index=281&type=chunk) [Capital Resources and Regulatory Matters](index=80&type=section&id=Capital%20Resources%20and%20Regulatory%20Matters) FNB maintains a strong capital base, exceeding regulatory requirements, with an active share repurchase program and CECL phase-in - FNB and FNBPA exceeded all regulatory capital requirements and were considered "**well-capitalized**" at June 30, 2023[288](index=288&type=chunk)[292](index=292&type=chunk) Capital Ratios (June 30, 2023) | Capital Ratios (June 30, 2023) | F.N.B. Corporation | FNBPA | Minimum Capital Requirements plus Capital Conservation Buffer | | :----------------------------- | :----------------- | :------ | :---------------------------------------------------------- | | Total capital ratio | 12.33% | 12.72% | 10.50% | | Tier 1 capital ratio | 10.35% | 10.69% | 8.50% | | Common equity tier 1 ratio | 10.05% | 10.46% | 7.00% | | Leverage ratio | 8.68% | 8.96% | 4.00% | - FNB has **$139.1 million** remaining for common stock repurchases under its existing **$300 million** program[285](index=285&type=chunk) - FNB elected to phase in the **CECL impact** on regulatory capital, with a total deferred impact of approximately **$34.4 million (10 basis points)** on CET1 capital as of June 30, 2023[289](index=289&type=chunk)[290](index=290&type=chunk) - Stress tests indicate that regulatory capital ratios would remain above requirements and liquidity levels would be maintained even under severely adverse economic scenarios[291](index=291&type=chunk) [LIQUIDITY](index=82&type=section&id=LIQUIDITY) FNB maintained ample liquidity despite deposit decreases, with high deposit insurance coverage and significant unused borrowing capacity - Total deposits decreased **$945.1 million (2.7%)** from December 31, 2022, and **$592 million (1.7%)** from March 8, 2023, due to seasonal declines, tax payments, and inflationary pressures, with a shift to time deposits[300](index=300&type=chunk)[301](index=301&type=chunk) - FNB maintained ample liquidity, with approximately **76% of deposits insured by the FDIC or collateralized**, and unused wholesale borrowing capacity of **$15.279 billion**, covering **1.9 times** uninsured and non-collateralized deposits[301](index=301&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk) Parent Company Liquidity Metrics | Parent Company Liquidity Metrics | June 30, 2023 | December 31, 2022 | Internal Limit | | :------------------------------- | :------------ | :---------------- | :------------- | | Liquidity coverage ratio | 2.7 times | 1.7 times | > 1 time | | Months of cash on hand | 16.7 months | 13.6 months | > 12 months | - FNB has **$2.2 billion** in cash and salable unpledged government and agency securities (**4.9% of total assets**), exceeding its policy minimum of **3.0%**[302](index=302&type=chunk)[303](index=303&type=chunk) [MARKET RISK](index=84&type=section&id=MARKET%20RISK) FNB manages interest rate risk through asset/liability policies, benefiting from rising rates with a positive cumulative repricing gap - FNB is primarily exposed to interest rate risk, managed through asset/liability policies, derivative instruments, and measures like earnings simulation, Economic Value of Equity (EVE), and gap analysis[305](index=305&type=chunk)[306](index=306&type=chunk)[308](index=308&type=chunk) Repricing Gap (Millions $) | Repricing Gap (in millions) | Within 1 Month | 2-3 Months | 4-6 Months | 7-12 Months | Total 1 Year | | :-------------------------- | :------------- | :--------- | :--------- | :---------- | :----------- | | Assets | $15,620 | $1,302 | $1,372 | $2,118 | $20,412 | | Liabilities | $8,434 | $1,051 | $1,056 | $2,326 | $12,867 | | Off-balance sheet | $(1,000) | $400 | $(200) | $(200) | $(1,000) | | Period Gap | $6,186 | $651 | $116 | $(408) | $6,545 | | Cumulative Gap to Assets | 15.5% | 17.1% | 17.4% | 16.4% | | - The positive cumulative repricing gap of **16.4%** at June 30, 2023 (up from **8.4%** at Dec 31, 2022) indicates a greater amount of repricing earning assets than interest-bearing liabilities over the next 12 months, benefiting from higher rates[310](index=310&type=chunk) Net Interest Income Change (12 months) | Net Interest Income Change (12 months) | June 30, 2023 | December 31, 2022 | ALCO Limits | | :------------------------------------- | :------------ | :---------------- | :---------- | | +300 basis points | 14.2% | 5.5% | n/a | | +200 basis points | 9.4% | 3.3% | (5.0)% | | +100 basis points | 4.7% | 1.1% | (5.0)% | | -100 basis points | 1.3% | 1.2% | (5.0)% | | -200 basis points | 2.0% | 0.9% | (5.0)% | - FNB's asset-sensitive position, with **47% of net loans and leases indexed to short-term rates**, has benefited from FOMC rate increases. Management aims for a more neutral position given market expectations[315](index=315&type=chunk)[317](index=317&type=chunk) [RISK MANAGEMENT](index=87&type=section&id=RISK%20MANAGEMENT) FNB's risk management framework addresses seven major risk categories, guided by a risk appetite statement and Board oversight - FNB identifies seven major risk categories: credit, market, liquidity, reputational, operational, legal and compliance, and strategic risk[319](index=319&type=chunk) - The Board of Directors adopted a risk appetite statement, monitored by **Key Risk Indicators (KRIs)**, to guide operations and optimize shareholder value within acceptable risk levels[320](index=320&type=chunk) - A governance structure involving the Board's Risk Committee and the senior management-level Risk Management Council ensures oversight and alignment of risk, capital, and performance[321](index=321&type=chunk) - Specialized departments (e.g., Enterprise-Wide Risk Management, Fraud Risk, Loan Review, Model Risk Management, Third-Party Risk Management, Anti-Money Laundering, Appraisal Review, Compliance, Information and Cyber Security) report to the Chief Risk Officer to implement risk management strategies[323](index=323&type=chunk) [RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE INDICATORS TO GAAP](index=89&type=section&id=RECONCILIATIONS%20OF%20NON-GAAP%20FINANCIAL%20MEASURES%20AND%20KEY%20PERFORMANCE%20INDICATORS%20TO%20GAAP) This section provides detailed reconciliations of FNB's non-GAAP financial measures and key performance indicators to comparable GAAP measures - Reconciliations are provided for non-GAAP measures including operating net income available to common stockholders, operating earnings per diluted common share, return on average tangible common equity, operating return on average tangible common equity, return on average tangible assets, tangible book value per common share, tangible equity to tangible assets, tangible common equity to tangible assets, and efficiency ratio (FTE)[327](index=327&type=chunk)[328](index=328&type=chunk)[329](index=329&type=chunk)[330](index=330&type=chunk)[331](index=331&type=chunk)[332](index=332&type=chunk)[333](index=333&type=chunk)[334](index=334&type=chunk)[335](index=335&type=chunk)[337](index=337&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=92&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item refers to the Market Risk section within Item 2 for detailed disclosures on FNB's exposure to market risk - Information on quantitative and qualitative disclosures about market risk is incorporated by reference from the "Market Risk" section of Item 2, Management's Discussion and Analysis[338](index=338&type=chunk) [Item 4. Controls and Procedures](index=92&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2023, with no material changes to internal controls over financial reporting - FNB's management, including the CEO and CFO, evaluated disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of June 30, 2023[339](index=339&type=chunk) - No material changes to internal controls over financial reporting occurred during the fiscal quarter ended June 30, 2023[341](index=341&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=93&type=section&id=Item%201.%20Legal%20Proceedings) This item refers to Note 12 of the Consolidated Financial Statements for information on FNB's legal and regulatory matters - Information on legal proceedings is incorporated by reference from Note 12, "Commitments, Credit Risk and Contingencies," in the Notes to the Consolidated Financial Statements[342](index=342&type=chunk) [Item 1A. Risk Factors](index=93&type=section&id=Item%201A.%20Risk%20Factors) This section highlights additional risk factors from recent banking industry disruption, including potential for enhanced regulation and increased FDIC assessments - Recent banking sector volatility (SVB, Signature Bank, First Republic Bank failures) may lead to enhanced government regulation and supervision, including potential changes to liquidity risk management, deposit concentrations, capital adequacy, and stress testing requirements[344](index=344&type=chunk)[345](index=345&type=chunk)[346](index=346&type=chunk)[351](index=351&type=chunk)[352](index=352&type=chunk) - FNB may experience increases in **FDIC insurance assessments** due to losses incurred by the Deposit Insurance Fund (DIF) from recent bank failures, potentially impacting results of operations and financial condition[347](index=347&type=chunk)[348](index=348&type=chunk) - Liquidity risk could impair FNB's ability to fund operations and meet obligations, especially if deposits are withdrawn rapidly or if the company cannot attract sufficient low-cost funding, potentially leading to higher funding costs or realized losses from selling securities[349](index=349&type=chunk) - Increased regulatory scrutiny and enforcement posture from U.S. government authorities could result in investigations, fines, penalties, or other adverse effects on FNB's business, financial condition, results of operations, or reputation[350](index=350&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=95&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) FNB repurchased 2,288,558 common shares in May 2023 at $10.80 per share, with $139.1 million remaining for repurchases Unregistered Sales of Equity Securities and Use of Proceeds | Period | Total shares purchased | Average price paid per share | Maximum dollar value of shares that may yet be purchased under programs | | :----------------------- | :--------------------- | :--------------------------- | :-------------------------------------------------------------------- | | May 1 - May 31, 2023 | 2,288,558 | $10.80 | $139,135,297 | | Total (Q2 2023) | 2,288,558 | $10.80 | | [Item 3. Defaults Upon Senior Securities](index=95&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - No defaults upon senior securities were reported[355](index=355&type=chunk) [Item 4. Mine Safety Disclosures](index=95&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to FNB's operations - Not Applicable[355](index=355&type=chunk) [Item 5. Other Information](index=95&type=section&id=Item%205.%20Other%20Information) No other information was reported under this item - No other information was reported[356](index=356&type=chunk) [Item 6. Exhibits](index=96&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including certifications and XBRL instance documents - Exhibits include certifications (Sarbanes-Oxley Act Sections 302 and 906) and Inline XBRL documents (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase Documents, and Cover Page Interactive Data File)[357](index=357&type=chunk) SIGNATURES [SIGNATURES](index=97&type=section&id=SIGNATURES) The report is duly signed by F.N.B. Corporation's Chairman, President and CEO, CFO, and Corporate Controller as of August 4, 2023 - The report is signed by Vincent J. Delie, Jr. (Chairman, President and CEO), Vincent J. Calabrese, Jr. (CFO), and James L. Dutey (Corporate Controller) on August 4, 2023[360](index=360&type=chunk)

Financial Data and Key Metrics Changes - The company reported a net income of $140.4 million for Q2 2023, translating to $0.39 per diluted common share, marking a 39% increase year-to-date [105] - Total deposits decreased by $365 million, or 1.1%, to $33.8 billion, primarily due to seasonal outflows and tax-related payments [8][101] - The CET1 ratio remained solid at 10%, with tangible book value per share increasing to $8.79, up $0.13 from the previous quarter [9][111] Business Line Data and Key Metrics Changes - Consumer loans increased by $517 million, driven by strong seasonal contributions from the Physicians First mortgage program [24] - Commercial loans and leases grew by $164 million, reflecting a 0.8% increase, with improved loan spreads [24] - Noninterest income is expected to be between $315 million and $325 million for the full year, with Q3 projected around $80 million [10] Market Data and Key Metrics Changes - The loan-to-deposit ratio increased to 92.7%, indicating strong loan growth relative to deposits [25] - The average total loan increased by 2.1% linked quarter to over $31 billion, with commercial loan balances benefiting from solid production [20] - The company experienced a 12% year-over-year loan growth while adhering to conservative underwriting guidelines [21] Company Strategy and Development Direction - The company is focused on enhancing its product suite and digital capabilities, including the launch of the Common Application to streamline customer interactions [4][120] - There is an emphasis on maintaining a diversified portfolio and proactive credit risk management to navigate economic downturns [6][22] - The company aims to capitalize on market disruptions and continue driving shareholder value through strategic investments and operational efficiencies [111] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage risks and maintain asset quality metrics near historical lows despite economic challenges [23][107] - The company anticipates a flat deposit balance for the remainder of 2023, with expectations for seasonal municipal deposits to support noninterest-bearing accounts [26][28] - Management noted that the competitive landscape for deposits has intensified, but they expect to maintain a favorable mix of noninterest-bearing deposits above pre-COVID levels [8][101] Other Important Information - The company repurchased 2.3 million shares at a weighted average price of $10.80 during the quarter [9] - Noninterest expense totaled $212 million, a decrease of nearly 4% from the previous quarter, reflecting effective cost management [124] - The effective tax rate is expected to be between 20% and 21% for the full year [27] Q&A Session Summary Question: What is the outlook for noninterest-bearing deposits? - Management indicated that they expect noninterest-bearing deposits to remain above pre-COVID levels, targeting a ratio around the mid-30s [28][130] Question: How does the company plan to manage expenses moving forward? - The company continues to focus on cost savings and efficiency, actively renegotiating contracts to mitigate inflationary impacts [15][30] Question: What are the expectations for loan growth and credit events? - Management stated that they are proactively managing the loan portfolio and do not anticipate significant changes in risk management practices despite expectations of potential credit events [58][135] Question: How is the company positioned in the current competitive landscape? - The company believes its diversified franchise and strong customer relationships have allowed it to weather recent banking disruptions effectively [44][68]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 For the quarterly period ended March 31, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 For the transition period from to Commission file number 001-31940 F.N.B. CORPORATION (Exact name of registrant as specified in its charter) FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 | Pennsylvania | | | | 25-1255406 | | --- | --- | - ...