Financial Performance and Growth - Total assets increased to 46.158billionin2023from43.725 billion in 2022, reflecting a growth of 5.6%[454] - Net loans and leases grew to 31.917billionin2023,upfrom29.853 billion in 2022, an increase of 6.9%[454] - Net interest income rose to 1.317billionin2023,upfrom1.120 billion in 2022, a 17.6% increase[456] - Net income available to common stockholders increased to 477millionin2023from431 million in 2022, a 10.7% growth[456] - Earnings per common share (diluted) improved to 1.31in2023from1.22 in 2022, a 7.4% increase[456] - Comprehensive income for 2023 was 607million,asignificantimprovementfrom144 million in 2022[457] - Retained earnings grew to 1.669billionin2023,upfrom1.370 billion in 2022, a 21.8% increase[458] - Net income for 2023 was 485million,anincreaseof10.5439 million in 2022[459] Credit Losses and Allowances - F.N.B. Corporation's net loan and lease portfolio was 32.3billionwithanassociatedAllowanceforCreditLosses(ACL)of405.6 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 401.7millionto405.6 million in 2023[607] - Commercial real estate allowance for credit losses increased from 162.1millionto166.6 million in 2023[607] - Residential mortgages allowance for credit losses rose from 55.5millionto70.5 million in 2023[607] - Total allowance for unfunded loan commitments increased slightly from 21.4millionto21.5 million in 2023[607] - ACL on loans and leases increased by 3.9million(1.0405.6 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 71.8million,comparedto64.2 million in 2022[610] - Net charge-offs in 2023 were 67.7million,includinga31.9 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 32.323billionin2023from30.255 billion in 2022, with commercial real estate loans increasing to 12.305billionandresidentialmortgagesrisingto6.640 billion[575] - The company transferred 355millionofindirectautomobileloanstotheheld−for−saleportfolioinQ42023,withthesalecompletedinFebruary2024[577]−Commercialrealestateloanswere29.012 million at the end of 2023 from 13millionatthebeginningoftheyear,with8 million in new loans and 10millioninrepayments[581]−Thecommercialloanportfoliohad12.4 million in gross charge-offs for commercial real estate and 51.2millionforcommercialandindustrialloansin2023[585]−Theremainingaccretablediscountonacquiredloansdecreasedto42.6 million in 2023 from 58.6millionin2022,including10.0 million for Howard and Union at acquisition[576] - Accrued interest receivable on loans and leases increased to 128.6millionin2023from99.3 million in 2022, excluded from credit loss estimates[574] - Total consumer loans decreased to 2,115millionin2023from2,862 million in 2022, a decline of 26.1%[586] - Total loans and leases decreased to 5,486millionin2023from6,624 million in 2022, a decline of 17.2%[586] - Total charge-offs decreased to 0.8millionin2023from5.2 million in 2022, a decline of 84.6%[586] - Direct installment loans decreased to 340millionin2023from713 million in 2022, a decline of 52.3%[586] - Residential mortgages decreased to 1,424millionin2023from1,692 million in 2022, a decline of 15.8%[586] - Indirect installment loans decreased to 313millionin2023from395 million in 2022, a decline of 20.8%[586] - Consumer lines of credit decreased to 38millionin2023from62 million in 2022, a decline of 38.7%[586] - Total direct installment gross charge-offs were 0.6millionovertheperiodfrom2019to2023[586]−Totalresidentialmortgagesgrosscharge−offswere0.7 million over the period from 2019 to 2023[586] - Total indirect installment gross charge-offs were 10.7millionovertheperiodfrom2019to2023[586]−Totalcommercialrealestateloansamountedto11.526 billion, with 2.013billionin2022and2.390 billion in 2021[587] - Total direct installment loans reached 2.784billion,with801 million in 2022 and 888millionin2021[587]−Totalconsumerloansstoodat10.965 billion, with 3.146billionin2022and2.864 billion in 2021[587] - Total loans and leases were 30.255billion,with7.061 billion in 2022 and 6.630billionin2021[587]−Residentialmortgagestotaled5.249 billion, with 1.464billionin2022and1.587 billion in 2021[587] - Consumer lines of credit amounted to 1.331billion,with74 million in 2022 and 18millionin2021[587]−Totalindirectinstallmentloanswere1.553 billion, with 805millionin2022and368 million in 2021[587] - Total commercial and industrial loans reached 19.290billion,with1.655 billion in 2022 and 1.249billionin2021[587]−Totalothercommercialloanswere5.297 billion, with 1.531billionin2022and1.311 billion in 2021[587] - Total loans and leases past due increased to 226millionin2023from216 million in 2022, with commercial loans and leases contributing 118millionandconsumerloanscontributing108 million[590] - Non-performing loans and leases decreased to 107millionin2023from113 million in 2022, representing 0.33% of total loans and leases compared to 0.37% in 2022[592] - Approximately 54.8millionofcommercialloansarecollateraldependentatDecember31,2023,withrepaymentexpectedthroughtheoperationorsaleofcollateral[593]−Accruedinterestreceivableonloanmodificationstotaled0.41 million at December 31, 2023, excluded from the amortized cost of loan modifications[594] - Total outstanding modified loans amounted to 59.2millionatDecember31,2023,withtermextensionsbeingthemostcommonmodificationtype[595]−Specificreservesforcommercialloansmodifiedincreasedto5.3 million in 2023 from 0in2022,withpooledreservesat2.0 million[597] - Pooled reserves for other classes of modified loans remained stable at 3.8millionforbothDecember31,2023and2022[598]−Amortizedcostbasisofmodifiedfinancingreceivablesthatsubsequentlydefaultedtotaled28.2 million at December 31, 2023[600] - Payment status of modified loans showed 47.8millioncurrent,11.3 million 30-89 days past due, and 0.1million90+dayspastdueatDecember31,2023[601]−Totalcommercialloansrecordedinvestmentpre−modificationwas3 million, post-modification decreased to 2million[604]−Totalconsumerloansrecordedinvestmentremainedstableat10 million pre and post-modification[604] Securities and Investments - The fair value of AFS debt securities as of December 31, 2023, was 3.254billion,withanamortizedcostof3.460 billion[557] - The fair value of HTM debt securities as of December 31, 2023, included an ACL of 0.28million[558]−TotaldebtsecuritiesHTMasofDecember31,2023,hadanamortizedcostof3,911 million and a fair value of 3,593million,reflectingunrealizedlossesof326 million[559] - The company sold 648.7millionofAFSsecuritiesin2023,resultinginarealizedlossof67.4 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 6,190millionasofDecember31,2023,representing89.91.0 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 52.4million,primarilyconsistingofsubordinateddebenturesofbankswithinthecompany′sfootprint[568]−UnrealizedlossesonAFSdebtsecuritiesasofDecember31,2023,totaled216 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 2.5million,and612.9 million[568] - The ACL on the HTM corporate bond portfolio was 0.28millionasofDecember31,2023,with0.06 million related to the municipal bond portfolio and 0.22millionrelatedtootherdebtsecurities[570]−Totalnon−marketableequitysecuritiesincreasedto361 million in 2023 from 268millionin2022,drivenbygrowthinFederalHomeLoanBankstockandFederalReserveBankstock[573]AcquisitionsandMergers−TheacquisitionofHowardBancorp,Inc.wascompletedonJanuary22,2022,withassetsvaluedatapproximately2.4 billion, including 1.8billioninloansanddeposits.Theacquisitionwasvaluedat443 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 1.1billion,including0.7 billion in loans and 1.0billionindeposits.Theacquisitionwasvaluedat126 million and resulted in the issuance of 9,672,691 shares of common stock[549] - Goodwill related to the Howard acquisition was recorded at 177million,andgoodwillrelatedtotheUnionacquisitionwasrecordedat38 million[555] - The company incurred merger expenses of 31.0millionin2022relatedtotheHowardacquisitionand14.3 million in 2022 and 2.2millionin2023relatedtotheUnionacquisition[546][551]−ThecompanyacquiredPCDloansandleasesof186.9 million from Howard and 36.9millionfromUnion,withACLsestablishedat10.0 million and 1.8million,respectively[547][552]−ThecompanyintegratedthesystemsandoperatingactivitiesofHowardinFebruary2022andUnioninDecember2022,makingitimpracticabletodiscloserevenueandincomebeforetaxesfromtheseacquisitions[548][553]OtherFinancialMetrics−Totalnon−interestincomedecreasedto254 million in 2023 from 323millionin2022,a21.4915 million in 2023 from 826millionin2022,a10.8423 million, a significant decrease from 1,218millionin2022[459]−Netchangeinloansandleasesfor2023wasadecreaseof2,442 million, compared to a decrease of 2,831millionin2022[459]−Debtsecuritiesavailableforsalepurchasesin2023totaled1,008 million, up from 880millionin2022[459]−Timedepositsincreasedby2,600 million in 2023, compared to an increase of 366millionin2022[459]−Thecompanyoperates346branchesacrosssevenstatesandtheDistrictofColumbiaasofDecember31,2023[461]−ThecompanyadoptedASU2022−02onJanuary1,2023,whicheliminatedtroubleddebtrestructuringaccountingandexpandedloanmodificationdisclosures[470]−HTMdebtsecuritiesarecarriedatamortizedcost,withcertainsecuritiesassumedtohavezeroexpectedcreditlossesbasedonhistoricaldataandcreditratings[478]−AFSdebtsecuritiesareevaluatedforimpairmentrelatedtocreditlossesatleastquarterly,consideringallrelevantinformationattheindividualsecuritylevel[479]−AFSdebtsecuritiesinanunrealizedlosspositionareevaluatedforcreditlosses,withimpairmentrecordedthroughtheACLifthefairvalueislessthantheamortizedcostbasis[480]−ChangesintheACLarerecordedasaprovisionforcreditlossexpense,withlosseschargedagainsttheACLwhenAFSdebtsecuritiesarenotcollectible[481]−Securitiessoldunderagreementstorepurchaseareaccountedforascollateralizedfinancingtransactions,withthefairvalueofcollateralcontinuallymonitored[482]−DerivativeinstrumentsarecarriedatfairvalueontheConsolidatedBalanceSheets,withchangesinfairvaluerecordedinAOCIforcashflowhedges[483][484]−Interestrateswapagreementsareusedtomanageinterestraterisk,withchangesinfairvaluerecognizedincurrentperiodearnings[486]−ResidentialmortgageloansheldforsaleareaccountedforundertheFVO,withchangesinfairvaluerecordedinmortgagebankingoperationsnon−interestincome[487]−SBAloansoriginatedwiththeintentiontosellareclassifiedasheldforsaleandcarriedatthelowerofcostorfairvalue[489]−Non−performingloansareplacedonnon−accrualstatuswhenprincipalorinterestremainsunpaidforacertainnumberofdays,withunpaidaccruedinterestreversedagainstinterestincome[491]−TheACLonloansandleasesisestimatedusinganon−discountedcashflowfactor−basedapproach,includingPD,LGD,andEADmodels[494][496]−Goodwillandotherintangibleassetsareamortizedovertheirestimatedusefullives,withcoredepositintangiblesprimarilyamortizedovertenyears[506]−Goodwillandotherintangiblesaresubjecttoimpairmenttestingatleastannually,withquarterlyassessmentsbasedonqualitativefactorssuchasmacroeconomicconditionsandfinancialperformance[507][508]−Thefairvalueofreportingunitsisdeterminedusingdiscountedcashflows,marketcomparisons,andrecenttransactions,involvingsignificantestimatesandassumptions[509]−ServicingrightsforresidentialmortgageloansandSBA−guaranteedloansareinitiallyrecordedatfairvalueandsubsequentlymeasuredatthelowerofcostorfairvalue,withimpairmentevaluatedquarterly[510][511][512]−BankOwnedLifeInsurancepoliciesarerecordedattheircashsurrendervalue,withtax−exemptincomefromdeathbenefitsrecordedasnon−interestincome[513]−InvestmentsinLowIncomeHousingTaxCreditPartnershipsarerecordedinotherassets,generatingreturnsthroughfederaltaxcredits[514]−Leaseobligationsandright−of−useassetsarerecognizedontheConsolidatedBalanceSheets,withleaseexpenserecognizedonastraight−linebasisforoperatingleases[515][516]−Revenuefromcontractswithcustomersisrecognizedwhencontrolofservicesistransferred,withdepositservicesrevenuerecognizeddailybasedonpublishedfees[519][520][522]−Wealthmanagementservicesrevenueisrecognizedmonthlybasedonfixedfeesorasset−basedscales,withtherighttoterminateservicesatanytime[525]−Incometaxexpenseisbasedonestimatesandjudgments,withdeferredtaxassetsandliabilitiescomputedusingexpectedtaxrates[529][530]−Stock−basedcompensationawardsaremeasuredandrecognizedbasedonestimatedfairvalues,withexpenserecognizedovertheserviceperiod[537][538]−Mortgageloanssoldwithservicingretainedincreasedto5,729 million at December 31, 2023, from 5,242millionatDecember31,2022[611]−Mortgageservicingfeesfor2023were14 million, compared to 13millionin2022[612]−MSRbalanceatendof2023was59.5 million,