☒ | Annual Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 |
☐ | Transition Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 |
Pennsylvania | 25-1255406 | |||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
One North Shore Center, | 12 Federal Street, | Pittsburgh, | PA | 15212 | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of Each Class | Trading Symbol(s) | Name of Exchange on which Registered | ||||||||||||
Common Stock, par value $0.01 per share | FNB | New York Stock Exchange | ||||||||||||
Depositary Shares each representing 1/40th interest in a
share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E |
FNBPrE | New York Stock Exchange |
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | ||||||||
Non-accelerated Filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging Growth Company | ☐ |
PAGE | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
PART III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
PART IV | ||||||||
Item 15. | ||||||||
Item 16. | ||||||||
Acronym
|
Description
|
Acronym
|
Description
|
|||||||||||
ACL | Allowance for credit losses |
GLB Act
|
Gramm-Leach Bliley Act of 1999
|
|||||||||||
ADC
|
Acquisition, development or construction
|
GSE
|
Government-sponsored entity
|
|||||||||||
AFS
|
Available for sale
|
HTM
|
Held to maturity
|
|||||||||||
ALCO
|
Asset/Liability Committee
|
HUD
|
Department of Housing and Urban Development
|
|||||||||||
AOCI
|
Accumulated other comprehensive income
|
HVCRE
|
High volatility commercial real estate
|
|||||||||||
ARRC | Alternative Reference Rates Committee |
IRLC
|
Interest rate lock commitment
|
|||||||||||
ASC
|
Accounting Standards Codification
|
LCR
|
Liquidity Coverage Ratio
|
|||||||||||
ASU
|
Accounting Standards Update
|
LGD
|
Loss given default
|
|||||||||||
AULC
|
Allowance for unfunded loan commitments
|
LIBOR
|
London Inter-bank Offered Rate
|
|||||||||||
BOLI
|
Bank owned life insurance
|
LIHTC
|
Low income housing tax credit
|
|||||||||||
Basel III
|
Basel III Capital Rules
|
LTV
|
Loan-to-value
|
|||||||||||
BHC Act
|
Bank Holding Company Act of 1956, as amended
|
MCH
|
Months of Cash on Hand
|
|||||||||||
CARES Act
|
Coronavirus Aid, Relief and Economic Security Act
|
MD&A
|
Management's Discussion and Analysis of Financial
Condition and Results of Operations
|
|||||||||||
CECL
|
Current expected credit losses
|
MSA
|
Mortgage servicing asset
|
|||||||||||
CET1
|
Common equity tier 1
|
MSRs
|
Mortgage servicing rights
|
|||||||||||
CFPB
|
Consumer Financial Protection Bureau
|
NYSE
|
New York Stock Exchange
|
|||||||||||
COVID-19
|
Novel coronavirus disease of 2019
|
OCI
|
Other comprehensive income
|
|||||||||||
CRA
|
Community Reinvestment Act of 1977
|
OCC
|
Office of the Comptroller of the Currency
|
|||||||||||
DIF
|
Deposit Insurance Fund
|
OREO
|
Other real estate owned
|
|||||||||||
Dodd-Frank
Act
|
Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010
|
OTTI
|
Other-than-temporary impairment
|
|||||||||||
DOJ
|
U.S. Department of Justice
|
PCD
|
Purchase credit deteriorated
|
|||||||||||
DTA
|
Deferred tax asset
|
PCI
|
Purchase credit impaired
|
|||||||||||
DTL
|
Deferred tax liability
|
PD | Probability of default | |||||||||||
EAD
|
Exposure at default
|
Penn-Ohio
|
Penn-Ohio Life Insurance Company
|
|||||||||||
Economic
Growth Act
|
Economic Growth, Regulatory Relief and
Consumer Protection Act
|
PPP | Paycheck Protection Program | |||||||||||
EVE
|
Economic value of equity
|
PPPLF
|
Paycheck Protection Program Liquidity Fund
|
|||||||||||
ERISA
|
Employee Retirement Income Security Act of 1974
|
QM
|
Qualified mortgage
|
|||||||||||
FASB
|
Financial Accounting Standards Board
|
Regency
|
Regency Finance Company
|
|||||||||||
FDIC
|
Federal Deposit Insurance Corporation
|
RESPA
|
Real Estate Settlement Procedures Act
|
|||||||||||
FDICIA
|
Federal Deposit Insurance Corporation
Improvement Act of 1991
|
RRR | Reference rate reform | |||||||||||
FHLB
|
Federal Home Loan Bank
|
R&S
|
Reasonable and Supportable
|
|||||||||||
FICO
|
Fair Isaac Corporation
|
SBA
|
Small Business Administration
|
|||||||||||
FINRA
|
Financial Industry Regulatory Authority
|
SEC
|
Securities and Exchange Commission
|
|||||||||||
FNB
|
F.N.B. Corporation
|
SOFR | Secured Overnight Financing Rate | |||||||||||
FNBIA
|
F.N.B. Investment Advisors, Inc.
|
SOX
|
Sarbanes-Oxley Act of 2002
|
|||||||||||
FNBPA
|
First National Bank of Pennsylvania
|
TCJA
|
Tax Cuts and Jobs Act of 2017
|
|||||||||||
FNIA
|
First National Insurance Agency, LLC
|
TDR
|
Troubled debt restructuring
|
|||||||||||
FNTC
|
First National Trust Company
|
TILA
|
Truth in Lending Act
|
|||||||||||
FOMC
|
Federal Open Market Committee
|
TPS
|
Trust preferred securities
|
|||||||||||
FSOC
|
Financial Stability Oversight Council
|
U.S.
|
United States of America
|
|||||||||||
FRB
|
Board of Governors of the Federal Reserve
System
|
UST
|
U.S. Department of the Treasury
|
|||||||||||
FTE
|
Fully taxable equivalent
|
VIE | Variable interest entity | |||||||||||
FVO
|
Fair value option
|
YDKN
|
Yadkin Financial Corporation
|
|||||||||||
GAAP
|
U.S. generally accepted accounting principles
|
|||||||||||||
December 31, 2020 | Community Banking | ||||
Pennsylvania | 209 | ||||
Ohio | 29 | ||||
Maryland | 26 | ||||
West Virginia | 2 | ||||
North Carolina | 86 | ||||
South Carolina | 4 | ||||
Washington, D.C. | 1 | ||||
Virginia | 1 | ||||
Total number of branches/retail offices | 358 | ||||
Total branches/retail offices owned | 206 | ||||
Total branches/retail offices leased | 152 |
Name | Age | Principal Occupation | ||||||||||||
Vincent J. Delie, Jr. | 56 |
President and Chief Executive Officer of FNB;
Chief Executive Officer of FNBPA |
||||||||||||
Vincent J. Calabrese, Jr. | 58 |
Chief Financial Officer of FNB;
Executive Vice President of FNBPA |
||||||||||||
Gary L. Guerrieri | 60 |
Chief Credit Officer of FNB;
Executive Vice President of FNBPA |
||||||||||||
James G. Orie | 62 |
Chief Legal Officer and Corporate Secretary of FNB;
Executive Vice President of FNBPA |
||||||||||||
James L. Dutey | 47 | Corporate Controller and Senior Vice President of FNB | ||||||||||||
David B. Mitchell, II | 63 | Chief Wholesale Banking Officer of FNBPA | ||||||||||||
Barry C. Robinson | 57 | Chief Consumer Banking Officer of FNBPA |
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs |
Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs (1)
|
||||||||||||||||||||||
October 1 - October 31, 2020 | 584,338 | $ | 7.55 | 584,338 | $ | 120,569,186 | ||||||||||||||||||||
November 1 - November 30, 2020 | 400,721 | 7.47 | 400,721 | 117,571,535 | ||||||||||||||||||||||
December 1 - December 31, 2020 | 645,490 | 9.28 | 645,490 | 111,571,970 | ||||||||||||||||||||||
Total | 1,630,549 | $ | 8.22 | 1,630,549 |
Year Ended December 31 | 2020 | 2019 |
2018 (1)
|
2017 (2)
|
2016 (3)
|
||||||||||||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||||||||||||||||
Total interest income | $ | 1,130 | $ | 1,247 | $ | 1,170 | $ | 980 | $ | 679 | |||||||||||||||||||
Total interest expense | 208 | 330 | 238 | 134 | 67 | ||||||||||||||||||||||||
Net interest income | 922 | 917 | 932 | 846 | 612 | ||||||||||||||||||||||||
Provision for credit losses | 123 | 44 | 61 | 61 | 56 | ||||||||||||||||||||||||
Total non-interest income | 294 | 294 | 276 | 252 | 201 | ||||||||||||||||||||||||
Total non-interest expense | 750 | 696 | 695 | 681 | 511 | ||||||||||||||||||||||||
Net income | 286 | 387 | 373 | 199 | 171 | ||||||||||||||||||||||||
Net income available to common stockholders | 278 | 379 | 365 | 191 | 163 | ||||||||||||||||||||||||
At Year-End | |||||||||||||||||||||||||||||
Total assets | $ | 37,354 | $ | 34,615 | $ | 33,102 | $ | 31,418 | $ | 21,845 | |||||||||||||||||||
Net loans | 25,096 | 23,093 | 21,973 | 20,823 | 14,739 | ||||||||||||||||||||||||
Deposits | 29,122 | 24,786 | 23,455 | 22,400 | 16,066 | ||||||||||||||||||||||||
Short-term borrowings | 1,804 | 3,216 | 4,129 | 3,678 | 2,503 | ||||||||||||||||||||||||
Long-term borrowings | 1,095 | 1,340 | 627 | 668 | 539 | ||||||||||||||||||||||||
Total stockholders’ equity | 4,959 | 4,883 | 4,608 | 4,409 | 2,572 | ||||||||||||||||||||||||
Per Common Share | |||||||||||||||||||||||||||||
Basic earnings per share | $ | 0.86 | $ | 1.17 | $ | 1.13 | $ | 0.63 | $ | 0.79 | |||||||||||||||||||
Diluted earnings per share | 0.85 | 1.16 | 1.12 | 0.63 | 0.78 | ||||||||||||||||||||||||
Cash dividends declared | 0.48 | 0.48 | 0.48 | 0.48 | 0.48 | ||||||||||||||||||||||||
Book value | 15.09 | 14.70 | 13.88 | 13.30 | 11.68 | ||||||||||||||||||||||||
Tangible book value (non-GAAP) (4)
|
7.88 | 7.53 | 6.68 | 6.06 | 6.53 | ||||||||||||||||||||||||
Ratios | |||||||||||||||||||||||||||||
Return on average assets | 0.78 | % | 1.14 | % | 1.16 | % | 0.68 | % | 0.83 | % | |||||||||||||||||||
Return on average tangible assets (non-GAAP) (4)
|
0.87 | 1.26 | 1.29 | 0.78 | 0.91 | ||||||||||||||||||||||||
Return on average equity | 5.83 | 8.14 | 8.30 | 4.89 | 6.84 | ||||||||||||||||||||||||
Return on average tangible common equity (non-GAAP) (4)
|
11.66 | 16.84 | 18.41 | 10.90 | 12.76 | ||||||||||||||||||||||||
Equity to assets (period-end) | 13.28 | 14.11 | 13.92 | 14.03 | 11.77 | ||||||||||||||||||||||||
Tangible equity to tangible assets (period-end)
(non-GAAP) (4) |
7.54 | 7.91 | 7.39 | 7.11 | 7.16 | ||||||||||||||||||||||||
Common equity to assets (period-end) | 12.99 | 13.80 | 13.60 | 13.69 | 11.28 | ||||||||||||||||||||||||
Tangible common equity to tangible assets (period-end) (non-GAAP) (4)
|
7.24 | 7.58 | 7.05 | 6.74 | 6.64 | ||||||||||||||||||||||||
Average equity to average assets | 13.40 | 14.05 | 13.97 | 13.98 | 12.09 | ||||||||||||||||||||||||
Dividend payout ratio | 56.45 | 41.45 | 42.96 | 74.61 | 62.43 |
Year-to-Date Results Summary | 2020 | 2019 | ||||||||||||
Reported results | ||||||||||||||
Net income available to common stockholders (millions) | $ | 278.0 | $ | 379.2 | ||||||||||
Net income per diluted common share | 0.85 | 1.16 | ||||||||||||
Book value per common share (period-end) | 15.09 | 14.70 | ||||||||||||
Pre-provision net revenue (reported) (millions) | 466.3 | 515.4 | ||||||||||||
Operating results (non-GAAP) | ||||||||||||||
Operating net income available to common stockholders (millions) | 314.0 | 386.1 | ||||||||||||
Operating net income per diluted common share | 0.96 | 1.18 | ||||||||||||
Tangible common equity to tangible assets (period-end) | 7.24 | % | 7.58 | % | ||||||||||
Tangible book value per common share (period-end) | $ | 7.88 | $ | 7.53 | ||||||||||
Pre-provision net revenue (operating) (millions) | 516.0 | 527.4 | ||||||||||||
Average diluted common shares outstanding (thousands) | 325,488 | 326,061 | ||||||||||||
Significant items impacting earnings (1) (millions)
|
||||||||||||||
Pre-tax COVID-19 expense | $ | (11.3) | $ | — | ||||||||||
After-tax impact of COVID-19 expense | (8.9) | — | ||||||||||||
Pre-tax gain on sale of Visa class B stock | 13.8 | — | ||||||||||||
After-tax impact of gain on sale of Visa class B stock | 10.9 | — | ||||||||||||
Pre-tax loss on FHLB debt extinguishment and related hedge terminations | (25.6) | — | ||||||||||||
After-tax impact of loss on FHLB debt extinguishment and related hedge terminations | (20.2) | — | ||||||||||||
Pre-tax branch consolidation costs | (18.7) | (4.5) | ||||||||||||
After-tax impact of branch consolidation costs | (14.8) | (3.6) | ||||||||||||
Pre-tax service charge refunds | (3.8) | (4.3) | ||||||||||||
After-tax impact of service charge refunds | (3.0) | (3.4) | ||||||||||||
Total significant items pre-tax | $ | (45.6) | $ | (8.8) | ||||||||||
Total significant items after-tax | $ | (36.0) | $ | (7.0) | ||||||||||
(1) Favorable (unfavorable) impact on earnings |
Year Ended
December 31 |
$
Change |
%
Change |
|||||||||||||||||||||
(in thousands, except per share data) | 2020 | 2019 | |||||||||||||||||||||
Net interest income | $ | 922,082 | $ | 917,239 | $ | 4,843 | 0.5 | % | |||||||||||||||
Provision for credit losses | 122,798 | 44,561 | 78,237 | 175.6 | |||||||||||||||||||
Non-interest income | 294,556 | 294,266 | 290 | 0.1 | |||||||||||||||||||
Non-interest expense | 750,349 | 696,128 | 54,221 | 7.8 | |||||||||||||||||||
Income taxes | 57,485 | 83,567 | (26,082) | (31.2) | |||||||||||||||||||
Net income | 286,006 | 387,249 | (101,243) | (26.1) | |||||||||||||||||||
Less: Preferred stock dividends | 8,041 | 8,041 | — | — | |||||||||||||||||||
Net income available to common stockholders | $ | 277,965 | $ | 379,208 | $ | (101,243) | (26.7) | % | |||||||||||||||
Earnings per common share – Basic | $ | 0.86 | $ | 1.17 | $ | (0.31) | (26.5) | % | |||||||||||||||
Earnings per common share – Diluted | 0.85 | 1.16 | (0.31) | (26.7) | |||||||||||||||||||
Cash dividends per common share | 0.48 | 0.48 | — | — |
Year Ended December 31 | 2020 | 2019 | |||||||||
Return on average equity | 5.83 | % | 8.14 | % | |||||||
Return on average tangible common equity (2)
|
11.66 | 16.84 | |||||||||
Return on average assets | 0.78 | 1.14 | |||||||||
Return on average tangible assets (2)
|
0.87 | 1.26 | |||||||||
Book value per common share (1)
|
$ | 15.09 | $ | 14.70 | |||||||
Tangible book value per common share (1) (2)
|
7.88 | 7.53 | |||||||||
Equity to assets (1)
|
13.28 | % | 14.11 | % | |||||||
Average equity to average assets | 13.40 | 14.05 | |||||||||
Common equity to assets (1)
|
12.99 | 13.80 | |||||||||
Tangible equity to tangible assets (1) (2)
|
7.54 | 7.91 | |||||||||
Tangible common equity to tangible assets (1) (2)
|
7.24 | 7.58 | |||||||||
Dividend payout ratio | 56.45 | 41.45 |
Year Ended December 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) |
Average
Balance |
Interest
Income/ Expense |
Yield/
Rate |
Average
Balance |
Interest
Income/ Expense |
Yield/
Rate |
Average
Balance |
Interest
Income/ Expense |
Yield/
Rate |
||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits with banks | $ | 470,466 | $ | 1,910 | 0.41 | % | $ | 73,834 | $ | 4,404 | 5.96 | % | $ | 62,100 | $ | 1,347 | 2.17 | % | |||||||||||||||||||||||||||||||||||
Taxable investment securities (1)
|
5,038,547 | 106,266 | 2.11 | 5,296,830 | 126,101 | 2.38 | 5,247,250 | 118,614 | 2.26 | ||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt investment securities (1) (2)
|
1,132,307 | 40,121 | 3.54 | 1,121,026 | 40,155 | 3.58 | 1,008,944 | 35,438 | 3.51 | ||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 212,328 | 9,817 | 4.62 | 102,344 | 5,386 | 5.26 | 47,761 | 2,841 | 5.95 | ||||||||||||||||||||||||||||||||||||||||||||
Loans and leases (2) (3)
|
25,211,191 | 984,662 | 3.91 | 22,776,639 | 1,085,094 | 4.76 | 21,581,629 | 1,025,229 | 4.75 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets (2)
|
32,064,839 | 1,142,776 | 3.56 | 29,370,673 | 1,261,140 | 4.29 | 27,947,684 | 1,183,469 | 4.23 | ||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 359,936 | 382,144 | 366,971 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (350,309) | (191,171) | (181,019) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and equipment | 336,117 | 330,920 | 329,151 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 4,196,847 | 3,958,197 | 3,675,710 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 36,607,430 | $ | 33,850,763 | $ | 32,138,497 | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing demand | $ | 12,161,766 | 57,224 | 0.47 | $ | 10,123,701 | 104,236 | 1.03 | $ | 9,396,339 | 62,876 | 0.67 | |||||||||||||||||||||||||||||||||||||||||
Savings | 2,890,440 | 2,822 | 0.10 | 2,532,456 | 8,535 | 0.34 | 2,558,370 | 6,007 | 0.23 | ||||||||||||||||||||||||||||||||||||||||||||
Certificates and other time | 4,261,738 | 72,825 | 1.71 | 5,268,208 | 103,852 | 1.97 | 5,022,607 | 73,341 | 1.46 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 19,313,944 | 132,871 | 0.69 | 17,924,365 | 216,623 | 1.21 | 16,977,316 | 142,224 | 0.84 | ||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | 2,515,558 | 38,504 | 1.53 | 3,551,135 | 79,990 | 2.24 | 3,917,858 | 74,439 | 1.89 | ||||||||||||||||||||||||||||||||||||||||||||
Long-term borrowings | 1,473,708 | 36,849 | 2.50 | 1,108,135 | 33,167 | 2.99 | 641,379 | 21,047 | 3.28 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 23,303,210 | 208,224 | 0.89 | 22,583,635 | 329,780 | 1.46 | 21,536,553 | 237,710 | 1.10 | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing demand | 8,004,557 | 6,128,196 | 5,843,429 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits and borrowings | 31,307,767 | 0.66 | 28,711,831 | 1.15 | 27,379,982 | 0.87 | |||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 395,363 | 381,467 | 267,682 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 31,703,130 | 29,093,298 | 27,647,664 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 4,904,300 | 4,757,465 | 4,490,833 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 36,607,430 | $ | 33,850,763 | $ | 32,138,497 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest-earning assets | $ | 8,761,629 | $ | 6,787,038 | $ | 6,411,131 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (FTE) (2)
|
934,552 | 931,360 | 945,759 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax-equivalent adjustment | (12,470) | (14,121) | (13,270) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 922,082 | $ | 917,239 | $ | 932,489 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest spread | 2.67 | % | 2.83 | % | 3.13 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin (2)
|
2.91 | % | 3.17 | % | 3.39 | % |
2020 vs 2019 | 2019 vs 2018 | ||||||||||||||||||||||||||||||||||
(in thousands) | Volume | Rate | Net | Volume | Rate | Net | |||||||||||||||||||||||||||||
Interest Income (1)
|
|||||||||||||||||||||||||||||||||||
Interest-bearing deposits with banks | $ | 1,608 | $ | (4,102) | $ | (2,494) | $ | 298 | $ | 2,759 | $ | 3,057 | |||||||||||||||||||||||
Securities (2)
|
(7,809) | (12,060) | (19,869) | 7,542 | 4,662 | 12,204 | |||||||||||||||||||||||||||||
Loans held for sale | 3,246 | 1,185 | 4,431 | 2,611 | (66) | 2,545 | |||||||||||||||||||||||||||||
Loans and leases (2)
|
103,916 | (204,348) | (100,432) | 49,717 | 10,148 | 59,865 | |||||||||||||||||||||||||||||
Total interest income (2)
|
100,961 | (219,325) | (118,364) | 60,168 | 17,503 | 77,671 | |||||||||||||||||||||||||||||
Interest Expense (1)
|
|||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand | 12,858 | (59,870) | (47,012) | 10,457 | 30,903 | 41,360 | |||||||||||||||||||||||||||||
Savings | 652 | (6,365) | (5,713) | 1,130 | 1,398 | 2,528 | |||||||||||||||||||||||||||||
Certificates and other time | (18,803) | (12,224) | (31,027) | 3,739 | 26,772 | 30,511 | |||||||||||||||||||||||||||||
Short-term borrowings | (22,010) | (19,476) | (41,486) | (7,079) | 12,630 | 5,551 | |||||||||||||||||||||||||||||
Long-term borrowings | 8,872 | (5,190) | 3,682 | 12,559 | (439) | 12,120 | |||||||||||||||||||||||||||||
Total interest expense | (18,431) | (103,125) | (121,556) | 20,806 | 71,264 | 92,070 | |||||||||||||||||||||||||||||
Net change (2)
|
$ | 119,392 | $ | (116,200) | $ | 3,192 | $ | 39,362 | $ | (53,761) | $ | (14,399) |
2020 vs 2019 | 2019 vs 2018 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 |
$
Change |
%
Change |
2018 |
$
Change |
%
Change |
||||||||||||||||||||||||||||||||||
Provision for credit losses (on loans and leases) | $ | 121,756 | $ | 44,561 | $ | 77,195 | 173.2 | % | $ | 61,227 | $ | (16,666) | (27.2) | % | |||||||||||||||||||||||||||
Net loan charge-offs | 59,808 | 28,334 | 31,474 | 111.1 | 55,960 | (27,626) | (49.4) | ||||||||||||||||||||||||||||||||||
Net loan charge-offs / total average loans and leases | 0.24 | % | 0.12 | % | 0.26 | % |
2020 vs 2019 | 2019 vs 2018 | |||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 |
$
Change |
%
Change |
2018 |
$
Change |
%
Change |
|||||||||||||||||||||||||||||||||||||
Service charges | $ | 108,146 | $ | 124,285 | $ | (16,139) | (13.0) | % | $ | 125,476 | $ | (1,191) | (0.9) | % | ||||||||||||||||||||||||||||||
Trust services | 31,249 | 27,885 | 3,364 | 12.1 | 25,818 | 2,067 | 8.0 | |||||||||||||||||||||||||||||||||||||
Insurance commissions and fees | 24,212 | 20,463 | 3,749 | 18.3 | 18,312 | 2,151 | 11.7 | |||||||||||||||||||||||||||||||||||||
Securities commissions and fees | 17,441 | 17,088 | 353 | 2.1 | 17,545 | (457) | (2.6) | |||||||||||||||||||||||||||||||||||||
Capital markets income | 39,337 | 33,224 | 6,113 | 18.4 | 21,366 | 11,858 | 55.5 | |||||||||||||||||||||||||||||||||||||
Mortgage banking operations | 49,665 | 31,689 | 17,976 | 56.7 | 21,940 | 9,749 | 44.4 | |||||||||||||||||||||||||||||||||||||
Dividends on non-marketable equity securities | 13,736 | 18,641 | (4,905) | (26.3) | 15,553 | 3,088 | 19.9 | |||||||||||||||||||||||||||||||||||||
Bank owned life insurance | 13,835 | 11,794 | 2,041 | 17.3 | 13,500 | (1,706) | (12.6) | |||||||||||||||||||||||||||||||||||||
Net securities gains | 282 | 70 | 212 | 302.9 | 34 | 36 | 105.9 | |||||||||||||||||||||||||||||||||||||
Loss on debt extinguishment | (16,655) | — | (16,655) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other | 13,308 | 9,127 | 4,181 | 45.8 | 16,107 | (6,980) | (43.3) | |||||||||||||||||||||||||||||||||||||
Total non-interest income | $ | 294,556 | $ | 294,266 | $ | 290 | 0.1 | % | $ | 275,651 | $ | 18,615 | 6.8 | % |
$ | % | ||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | Change | Change | |||||||||||||||||||
Total non-interest income, as reported | $ | 294,556 | $ | 294,266 | $ | 290 | 0.1 | % | |||||||||||||||
Significant items: | |||||||||||||||||||||||
Gain on sale of Visa class B stock | (13,818) | — | (13,818) | ||||||||||||||||||||
Loss on FHLB debt extinguishment and related hedge terminations | 25,611 | — | 25,611 | ||||||||||||||||||||
Loss on fixed assets related to branch consolidations | — | 1,722 | (1,722) | ||||||||||||||||||||
Service charge refunds | 3,780 | 4,279 | (499) | ||||||||||||||||||||
Total non-interest income, excluding significant items (1)
|
$ | 310,129 | $ | 300,267 | $ | 9,862 | 3.3 | % |
2020 vs 2019 | 2019 vs 2018 | |||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 |
$
Change |
%
Change |
2018 |
$
Change |
%
Change |
|||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 405,529 | $ | 375,084 | $ | 30,445 | 8.1 | % | $ | 369,630 | $ | 5,454 | 1.5 | % | ||||||||||||||||||||||||||||||
Net occupancy | 71,166 | 58,416 | 12,750 | 21.8 | 59,679 | (1,263) | (2.1) | |||||||||||||||||||||||||||||||||||||
Equipment | 65,312 | 61,903 | 3,409 | 5.5 | 55,430 | 6,473 | 11.7 | |||||||||||||||||||||||||||||||||||||
Amortization of intangibles | 13,362 | 14,167 | (805) | (5.7) | 15,652 | (1,485) | (9.5) | |||||||||||||||||||||||||||||||||||||
Outside services | 69,258 | 64,006 | 5,252 | 8.2 | 65,682 | (1,676) | (2.6) | |||||||||||||||||||||||||||||||||||||
FDIC insurance | 20,073 | 23,294 | (3,221) | (13.8) | 32,959 | (9,665) | (29.3) | |||||||||||||||||||||||||||||||||||||
Bank shares and franchise taxes | 14,376 | 12,493 | 1,883 | 15.1 | 11,929 | 564 | 4.7 | |||||||||||||||||||||||||||||||||||||
Other | 91,273 | 86,765 | 4,508 | 5.2 | 83,571 | 3,194 | 3.8 | |||||||||||||||||||||||||||||||||||||
Total non-interest expense | $ | 750,349 | $ | 696,128 | $ | 54,221 | 7.8 | % | $ | 694,532 | $ | 1,596 | 0.2 | % |
$ | % | ||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | Change | Change | |||||||||||||||||||
Total non-interest expense, as reported | $ | 750,349 | $ | 696,128 | $ | 54,221 | 7.8 | % | |||||||||||||||
Significant items: | |||||||||||||||||||||||
Branch consolidations | (18,745) | (2,783) | (15,962) | ||||||||||||||||||||
COVID-19 expense | (11,276) | — | (11,276) | ||||||||||||||||||||
Total non-interest expense, excluding significant items (1)
|
$ | 720,328 | $ | 693,345 | $ | 26,983 | 3.9 | % |
Year ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Income tax expense | $ | 57,485 | $ | 83,567 | $ | 79,523 | |||||||||||
Effective tax rate | 16.7 | % | 17.7 | % | 17.6 | % | |||||||||||
Statutory federal tax rate | 21.0 | % | 21.0 | % | 21.0 | % |
December 31 |
$
Change |
%
Change |
|||||||||||||||||||||
(dollars in millions) | 2020 | 2019 | |||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,383 | $ | 599 | $ | 784 | 130.9 | % | |||||||||||||||
Securities | 6,331 | 6,564 | (233) | (3.5) | |||||||||||||||||||
Loans held for sale | 154 | 51 | 103 | 202.0 | |||||||||||||||||||
Loans and leases, net | 25,096 | 23,093 | 2,003 | 8.7 | |||||||||||||||||||
Goodwill and other intangibles | 2,316 | 2,329 | (13) | (0.6) | |||||||||||||||||||
Other assets | 2,074 | 1,979 | 95 | 4.8 | |||||||||||||||||||
Total Assets | $ | 37,354 | $ | 34,615 | $ | 2,739 | 7.9 | % | |||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||
Deposits | $ | 29,122 | $ | 24,786 | $ | 4,336 | 17.5 | % | |||||||||||||||
Borrowings | 2,899 | 4,556 | (1,657) | (36.4) | |||||||||||||||||||
Other liabilities | 374 | 390 | (16) | (4.1) | |||||||||||||||||||
Total Liabilities | 32,395 | 29,732 | 2,663 | 9.0 | |||||||||||||||||||
Stockholders’ Equity | 4,959 | 4,883 | 76 | 1.6 | |||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 37,354 | $ | 34,615 | $ | 2,739 | 7.9 | % |
December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Commercial real estate | $ | 9,731 | $ | 8,960 | $ | 8,786 | $ | 8,742 | $ | 5,435 | |||||||||||||||||||
Commercial and industrial | 7,214 | 5,308 | 4,556 | 4,170 | 3,043 | ||||||||||||||||||||||||
Commercial leases | 485 | 432 | 373 | 267 | 197 | ||||||||||||||||||||||||
Other | 40 | 21 | 46 | 17 | 36 | ||||||||||||||||||||||||
Total commercial loans and leases | 17,470 | 14,721 | 13,761 | 13,196 | 8,711 | ||||||||||||||||||||||||
Direct installment | 2,020 | 1,821 | 1,764 | 1,906 | 1,844 | ||||||||||||||||||||||||
Residential mortgages | 3,433 | 3,374 | 3,113 | 2,703 | 1,845 | ||||||||||||||||||||||||
Indirect installment | 1,218 | 1,922 | 1,933 | 1,448 | 1,196 | ||||||||||||||||||||||||
Consumer lines of credit | 1,318 | 1,451 | 1,582 | 1,746 | 1,301 | ||||||||||||||||||||||||
Total consumer loans | 7,989 | 8,568 | 8,392 | 7,803 | 6,186 | ||||||||||||||||||||||||
Total loans and leases | $ | 25,459 | $ | 23,289 | $ | 22,153 | $ | 20,999 | $ | 14,897 |
(in millions) |
Within
1 Year |
1-5
Years |
Over
5 Years |
Total | |||||||||||||||||||
Commercial loans and leases | $ | 1,682 | $ | 9,077 | $ | 6,711 | $ | 17,470 | |||||||||||||||
Residential mortgages | 9 | 43 | 3,381 | 3,433 | |||||||||||||||||||
Total | $ | 1,691 | $ | 9,120 | $ | 10,092 | $ | 20,903 | |||||||||||||||
Interest rates for loans with maturities over one year: | |||||||||||||||||||||||
Fixed | $ | 4,299 | $ | 3,299 | $ | 7,598 | |||||||||||||||||
Floating | 4,821 | 6,793 | 11,614 |
December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Commercial real estate | $ | 85 | $ | 32 | $ | 23 | $ | 31 | $ | 21 | |||||||||||||||||||
Commercial and industrial | 44 | 29 | 37 | 23 | 26 | ||||||||||||||||||||||||
Commercial leases | 2 | 1 | 2 | 2 | 4 | ||||||||||||||||||||||||
Other | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||
Total commercial loans and leases | 132 | 63 | 63 | 57 | 52 | ||||||||||||||||||||||||
Direct installment | 11 | 13 | 14 | 17 | 15 | ||||||||||||||||||||||||
Residential mortgages | 18 | 17 | 14 | 16 | 13 | ||||||||||||||||||||||||
Indirect installment | 2 | 3 | 2 | 2 | 2 | ||||||||||||||||||||||||
Consumer lines of credit | 7 | 7 | 7 | 6 | 4 | ||||||||||||||||||||||||
Total consumer loans | 38 | 40 | 37 | 41 | 34 | ||||||||||||||||||||||||
Total non-performing loans and leases (1)
|
$ | 170 | $ | 103 | $ | 100 | $ | 98 | $ | 86 |
December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||
Non-accrual loans | $ | 170 | $ | 81 | $ | 79 | $ | 75 | $ | 66 | |||||||||||||||||||
Troubled debt restructurings | — | 22 | 21 | 23 | 20 | ||||||||||||||||||||||||
Total non-performing loans and leases | 170 | 103 | 100 | 98 | 86 | ||||||||||||||||||||||||
Other real estate owned | 10 | 26 | 35 | 41 | 32 | ||||||||||||||||||||||||
Total non-performing assets | $ | 181 | $ | 129 | $ | 135 | $ | 139 | $ | 118 | |||||||||||||||||||
Non-performing loans / total loans and leases | 0.67 | % | 0.44 | % | 0.45 | % | 0.47 | % | 0.58 | % | |||||||||||||||||||
Non-performing loans + OREO / total loans and leases + OREO | 0.71 | % | 0.55 | % | 0.61 | % | 0.66 | % | 0.79 | % | |||||||||||||||||||
Non-performing assets / total assets | 0.48 | % | 0.37 | % | 0.41 | % | 0.44 | % | 0.54 | % |
(in millions) | Accruing | Non-Accrual | Total | ||||||||||||||
December 31, 2020 | |||||||||||||||||
Commercial real estate | $ | 4 | $ | 18 | $ | 22 | |||||||||||
Commercial and industrial | 1 | 3 | 4 | ||||||||||||||
Total commercial loans | 5 | 21 | 26 | ||||||||||||||
Direct installment | 23 | 4 | 27 | ||||||||||||||
Residential mortgages | 24 | 7 | 31 | ||||||||||||||
Consumer lines of credit | 6 | 1 | 7 | ||||||||||||||
Total consumer loans | 53 | 12 | 65 | ||||||||||||||
Total | $ | 58 | $ | 33 | $ | 91 | |||||||||||
December 31, 2019 | |||||||||||||||||
Commercial real estate | $ | 3 | $ | 5 | $ | 8 | |||||||||||
Commercial and industrial | 1 | 3 | 4 | ||||||||||||||
Total commercial loans | 4 | 8 | 12 | ||||||||||||||
Direct installment | 18 | 3 | 21 | ||||||||||||||
Residential mortgages | 14 | 3 | 17 | ||||||||||||||
Consumer lines of credit | 5 | 1 | 6 | ||||||||||||||
Total consumer loans | 37 | 7 | 44 | ||||||||||||||
Total | $ | 41 | $ | 15 | $ | 56 | |||||||||||
December 31, 2018 | |||||||||||||||||
Commercial real estate | $ | 3 | $ | 2 | $ | 5 | |||||||||||
Commercial and industrial | 1 | — | 1 | ||||||||||||||
Total commercial loans | 4 | 2 | 6 | ||||||||||||||
Direct installment | 17 | 4 | 21 | ||||||||||||||
Residential mortgages | 13 | 3 | 16 | ||||||||||||||
Consumer lines of credit | 5 | — | 5 | ||||||||||||||
Total consumer loans | 35 | 7 | 42 | ||||||||||||||
Total | $ | 39 | $ | 9 | $ | 48 | |||||||||||
December 31, 2017 | |||||||||||||||||
Commercial real estate | $ | 3 | $ | 4 | $ | 7 | |||||||||||
Commercial and industrial | 3 | — | 3 | ||||||||||||||
Total commercial loans | 6 | 4 | 10 | ||||||||||||||
Direct installment | 19 | 3 | 22 | ||||||||||||||
Residential mortgages | 15 | 2 | 17 | ||||||||||||||
Consumer lines of credit | 4 | 1 | 5 | ||||||||||||||
Total consumer loans | 38 | 6 | 44 | ||||||||||||||
Total | $ | 44 | $ | 10 | $ | 54 | |||||||||||
December 31, 2016 | |||||||||||||||||
Commercial real estate | $ | — | $ | 4 | $ | 4 | |||||||||||
Commercial and industrial | — | 2 | 2 | ||||||||||||||
Total commercial loans | — | 6 | 6 | ||||||||||||||
Direct installment | 19 | 2 | 21 | ||||||||||||||
Residential mortgages | 15 | 1 | 16 | ||||||||||||||
Consumer lines of credit | 4 | — | 4 | ||||||||||||||
Total consumer loans | 38 | 3 | 41 | ||||||||||||||
Total | $ | 38 | $ | 9 | $ | 47 |
December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||
Total loans and leases 90 days or more past due | $ | 16 | $ | 42 | $ | 58 | $ | 99 | $ | 50 | |||||||||||||||||||
As a percentage of total loans and leases | 0.06 | % | 0.18 | % | 0.26 | % | 0.47 | % | 0.33 | % |
December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Gross interest income: | |||||||||||||||||||||||||||||
Per contractual terms | $ | 13 | $ | 13 | $ | 15 | $ | 23 | $ | 12 | |||||||||||||||||||
Recorded during the year | — | — | 1 | 1 | 1 |
Year Ended December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 196 | $ | 180 | $ | 175 | $ | 158 | $ | 142 | |||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||||||||
Commercial real estate | (31) | (4) | (7) | (2) | (7) | ||||||||||||||||||||||||
Commercial and industrial | (32) | (10) | (20) | (27) | (19) | ||||||||||||||||||||||||
Commercial leases | (1) | — | (3) | (1) | (1) | ||||||||||||||||||||||||
Other | (4) | (3) | (4) | (4) | (3) | ||||||||||||||||||||||||
Commercial loans and leases | (68) | (17) | (34) | (34) | (30) | ||||||||||||||||||||||||
Direct installment | (1) | (1) | (17) | (12) | (10) | ||||||||||||||||||||||||
Residential mortgages | (2) | (2) | — | — | — | ||||||||||||||||||||||||
Indirect installment | (8) | (11) | (9) | (10) | (8) | ||||||||||||||||||||||||
Consumer lines of credit | (2) | (2) | (3) | (2) | (2) | ||||||||||||||||||||||||
Consumer loans | (13) | (16) | (29) | (24) | (20) | ||||||||||||||||||||||||
Loans acquired in a business combination | — | (9) | (7) | (2) | (1) | ||||||||||||||||||||||||
Total charge-offs | (81) | (42) | (70) | (60) | (51) | ||||||||||||||||||||||||
Recoveries: | |||||||||||||||||||||||||||||
Commercial real estate | 7 | 4 | 3 | 2 | 4 | ||||||||||||||||||||||||
Commercial and industrial | 7 | 4 | 2 | 2 | 2 | ||||||||||||||||||||||||
Other | 1 | — | — | 1 | — | ||||||||||||||||||||||||
Commercial loans and leases | 15 | 8 | 5 | 5 | 6 | ||||||||||||||||||||||||
Direct installment | 1 | — | 2 | 2 | 2 | ||||||||||||||||||||||||
Residential mortgages | 1 | — | — | — | — | ||||||||||||||||||||||||
Indirect installment | 4 | 4 | 4 | 4 | 2 | ||||||||||||||||||||||||
Consumer loans | 6 | 4 | 6 | 6 | 4 | ||||||||||||||||||||||||
Loans acquired in a business combination | — | 2 | 3 | 5 | 1 | ||||||||||||||||||||||||
Total recoveries | 21 | 14 | 14 | 16 | 11 | ||||||||||||||||||||||||
Net charge-offs | (60) | (28) | (56) | (44) | (40) | ||||||||||||||||||||||||
Provision for credit losses | 122 | 44 | 61 | 61 | 56 | ||||||||||||||||||||||||
ASC 326 adoption impact | 55 | — | — | — | — | ||||||||||||||||||||||||
Initial ACL on PCD loans | 50 | — | — | — | — | ||||||||||||||||||||||||
Balance at end of period | $ | 363 | $ | 196 | $ | 180 | $ | 175 | $ | 158 | |||||||||||||||||||
Net loan charge-offs/average loans | 0.24 | % | 0.12 | % | 0.26 | % | 0.22 | % | 0.28 | % | |||||||||||||||||||
Allowance for credit losses/total loans and leases | 1.43 | % | 0.84 | % | 0.81 | % | 0.84 | % | 1.06 | % | |||||||||||||||||||
Allowance for credit losses/non-performing loans | 212.64 | % | 190.29 | % | 180.37 | % | 178.75 | % | 183.99 | % |
Year Ended December 31 | 2020 | ||||||||||||||||
(in millions) | |||||||||||||||||
Balance at beginning of period | $ | 3 | |||||||||||||||
Provision for unfunded loan commitments and letters of credit: | |||||||||||||||||
Commercial portfolio | 1 | ||||||||||||||||
Consumer portfolio | — | ||||||||||||||||
ASC 326 adoption impact: | |||||||||||||||||
Commercial portfolio | 8 | ||||||||||||||||
Consumer portfolio | 2 | ||||||||||||||||
Balance at end of period | $ | 14 |
December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | Allowance |
% of
Loans |
Allowance |
% of
Loans |
Allowance |
% of
Loans |
Allowance |
% of
Loans |
Allowance |
% of
Loans |
|||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 181 | 38 | % | $ | 60 | 30 | % | $ | 55 | 28 | % | $ | 50 | 25 | % | $ | 47 | 28 | % | |||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 81 | 29 | 53 | 22 | 49 | 19 | 52 | 17 | 48 | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial leases | 17 | 2 | 11 | 2 | 8 | 2 | 5 | 1 | 3 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other | 1 | — | 2 | — | 2 | — | 2 | — | 1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans and leases | 280 | 69 | 126 | 54 | 114 | 49 | 109 | 43 | 99 | 47 | |||||||||||||||||||||||||||||||||||||||||||||||||
Direct installment | 26 | 8 | 13 | 8 | 14 | 7 | 21 | 8 | 21 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgages | 34 | 13 | 22 | 13 | 20 | 12 | 16 | 10 | 10 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||
Indirect installment | 11 | 5 | 19 | 8 | 15 | 9 | 12 | 7 | 11 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Consumer lines of credit | 12 | 5 | 9 | 5 | 10 | 5 | 10 | 5 | 10 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | 83 | 31 | 63 | 34 | 59 | 33 | 59 | 30 | 52 | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total originated loans | 363 | 100 | 189 | 88 | 173 | 82 | 168 | 73 | 151 | 84 | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans acquired in a business combination | — | — | 7 | 12 | 7 | 18 | 7 | 27 | 7 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 363 | 100 | % | $ | 196 | 100 | % | $ | 180 | 100 | % | $ | 175 | 100 | % | $ | 158 | 100 | % |
(dollars in millions) | Amount |
Weighted
Average Yield |
|||||||||
Obligations of U.S. Treasury: | |||||||||||
Maturing within one year | $ | 600 | 0.08 | % | |||||||
Maturing after five years but within ten years | 1 | 5.25 | |||||||||
Obligations of U.S. government agencies: | |||||||||||
Maturing after one year but within five years | 6 | 1.79 | |||||||||
Maturing after five years but within ten years | 83 | 1.10 | |||||||||
Maturing after ten years | 84 | 0.83 | |||||||||
Obligations of U.S. government-sponsored entities: | |||||||||||
Maturing within one year | 160 | 1.43 | |||||||||
Maturing after one year but within five years | 96 | 1.31 | |||||||||
Maturing after five years but within ten years | 25 | 0.58 | |||||||||
States of the U.S. and political subdivisions: | |||||||||||
Maturing within one year | 4 | 2.96 | |||||||||
Maturing after one year but within five years | 32 | 2.12 | |||||||||
Maturing after five years but within ten years | 165 | 3.01 | |||||||||
Maturing after ten years | 939 | 3.64 | |||||||||
Other debt securities: | |||||||||||
Maturing after five years but within ten years | 2 | 1.03 | |||||||||
Residential mortgage-backed securities: | |||||||||||
Agency mortgage-backed securities | 1,763 | 2.02 | |||||||||
Agency collateralized mortgage obligations | 1,686 | 1.92 | |||||||||
Commercial mortgage-backed securities | 685 | 2.40 | |||||||||
Total | $ | 6,331 | 2.06 | % |
December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
Securities Available for Sale: | |||||||||||||||||
U.S. Treasury | $ | 600 | $ | — | $ | — | |||||||||||
U.S. government agencies | 172 | 152 | 188 | ||||||||||||||
U.S. government-sponsored entities | 160 | 225 | 317 | ||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||
Agency mortgage-backed securities | 959 | 1,310 | 1,465 | ||||||||||||||
Agency collateralized mortgage obligations | 1,094 | 1,234 | 1,179 | ||||||||||||||
Commercial mortgage-backed securities | 361 | 341 | 229 | ||||||||||||||
States of the U.S. and political subdivisions | 32 | 11 | 21 | ||||||||||||||
Other debt securities | 2 | 2 | 2 | ||||||||||||||
Total debt securities available for sale | $ | 3,380 | $ | 3,275 | $ | 3,401 | |||||||||||
Debt Securities Held to Maturity: | |||||||||||||||||
U.S. Treasury | $ | 1 | $ | 1 | $ | 1 | |||||||||||
U.S. government agencies | 1 | 1 | 2 | ||||||||||||||
U.S. government-sponsored entities | 120 | 175 | 215 | ||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||
Agency mortgage-backed securities | 769 | 949 | 1,036 | ||||||||||||||
Agency collateralized mortgage obligations | 562 | 721 | 794 | ||||||||||||||
Commercial mortgage-backed securities | 307 | 308 | 126 | ||||||||||||||
States of the U.S. and political subdivisions | 1,108 | 1,120 | 1,080 | ||||||||||||||
Total debt securities held to maturity | $ | 2,868 | $ | 3,275 | $ | 3,254 |
December 31 | 2020 | 2019 |
$
Change |
%
Change |
|||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Non-interest-bearing demand | $ | 9,042 | $ | 6,384 | $ | 2,658 | 41.6 | % | |||||||||||||||
Interest-bearing demand | 13,157 | 11,049 | 2,108 | 19.1 | |||||||||||||||||||
Savings | 3,261 | 2,625 | 636 | 24.2 | |||||||||||||||||||
Certificates and other time deposits | 3,662 | 4,728 | (1,066) | (22.5) | |||||||||||||||||||
Total deposits | $ | 29,122 | $ | 24,786 | $ | 4,336 | 17.5 | % |
(in millions) |
Certificates
of Deposit |
Other
Time Deposits |
Total | ||||||||||||||
Three months or less | $ | 392 | $ | 26 | $ | 418 | |||||||||||
Three to six months | 316 | 25 | 341 | ||||||||||||||
Six to twelve months | 414 | 34 | 448 | ||||||||||||||
Over twelve months | 450 | 110 | 560 | ||||||||||||||
Total | $ | 1,572 | $ | 195 | $ | 1,767 |
At or for the Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(dollars in millions) | |||||||||||||||||
FHLB Advances (Short-term) | |||||||||||||||||
Balance at year-end | $ | 1,280 | $ | 2,255 | $ | 2,230 | |||||||||||
Maximum month-end balance | 2,055 | 2,620 | 2,800 | ||||||||||||||
Average balance during year | 1,699 | 1,797 | 1,932 | ||||||||||||||
Weighted average interest rates: | |||||||||||||||||
At year-end
|
1.97 | % | 1.90 | % | 2.64 | % | |||||||||||
During the year
|
0.88 | 2.52 | 2.14 | ||||||||||||||
Federal Funds Purchased | |||||||||||||||||
Balance at year-end | $ | — | $ | 575 | $ | 1,535 | |||||||||||
Maximum month-end balance | 1,420 | 1,957 | 1,830 | ||||||||||||||
Average balance during year | 348 | 1,383 | 1,585 | ||||||||||||||
Weighted average interest rates: | |||||||||||||||||
At year-end
|
— | % | 1.57 | % | 2.51 | % | |||||||||||
During the year
|
1.08 | 2.35 | 1.93 |
(in millions) |
Within
1 Year |
1-3
Years |
3-5
Years |
After
5 Years |
Total | ||||||||||||||||||||||||
Deposits without a stated maturity | $ | 25,460 | $ | — | $ | — | $ | — | $ | 25,460 | |||||||||||||||||||
Certificates and other time deposits | 2,464 | 919 | 223 | 56 | 3,662 | ||||||||||||||||||||||||
Operating leases | 25 | 38 | 27 | 64 | 154 | ||||||||||||||||||||||||
Long-term debt | 427 | 350 | 105 | 213 | 1,095 | ||||||||||||||||||||||||
Total | $ | 28,376 | $ | 1,307 | $ | 355 | $ | 333 | $ | 30,371 |
(in millions) |
Within
1 Year |
1-3
Years |
3-5
Years |
After
5 Years |
Total | ||||||||||||||||||||||||
Commitments to extend credit | $ | 6,153 | $ | 1,676 | $ | 846 | $ | 610 | $ | 9,285 | |||||||||||||||||||
Standby letters of credit | 152 | 5 | 1 | — | 158 | ||||||||||||||||||||||||
Total | $ | 6,305 | $ | 1,681 | $ | 847 | $ | 610 | $ | 9,443 |
December 31 | 2020 | 2019 |
Internal
Limit |
||||||||||||||
Liquidity coverage ratio | 2.7 times | 2.2 times | > 1 time | ||||||||||||||
Months of cash on hand | 22.2 months | 15.2 months | > 12 months |
December 31 | 2020 | 2019 | |||||||||
(dollars in millions) | |||||||||||
Unused wholesale credit availability | $ | 16,434 | $ | 11,154 | |||||||
Unused wholesale credit availability as a % of FNBPA assets | 44.1 | % | 32.3 | % | |||||||
Salable unpledged government and agency securities | $ | 546 | $ | 1,788 | |||||||
Salable unpledged government and agency securities as a % of FNBPA assets | 1.5 | % | 5.2 | % |
(dollars in millions) |
Within
1 Month |
2-3
Months |
4-6
Months |
7-12
Months |
Total
1 Year |
||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Loans | $ | 771 | $ | 1,483 | $ | 1,852 | $ | 3,302 | $ | 7,408 | |||||||||||||||||||
Investments | 1,491 | 506 | 361 | 692 | 3,050 | ||||||||||||||||||||||||
2,262 | 1,989 | 2,213 | 3,994 | 10,458 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Non-maturity deposits | 514 | 1,029 | 977 | 1,641 | 4,161 | ||||||||||||||||||||||||
Time deposits | 298 | 558 | 681 | 932 | 2,469 | ||||||||||||||||||||||||
Borrowings | 13 | 172 | 235 | 363 | 783 | ||||||||||||||||||||||||
825 | 1,759 | 1,893 | 2,936 | 7,413 | |||||||||||||||||||||||||
Period Gap (Assets - Liabilities) | $ | 1,437 | $ | 230 | $ | 320 | $ | 1,058 | $ | 3,045 | |||||||||||||||||||
Cumulative Gap | $ | 1,437 | $ | 1,667 | $ | 1,987 | $ | 3,045 | |||||||||||||||||||||
Cumulative Gap to Total Assets | 3.8 | % | 4.5 | % | 5.3 | % | 8.2 | % |
(dollars in millions) |
Within
1 Month |
2-3
Months |
4-6
Months |
7-12
Months |
Total
1 Year |
||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Loans | $ | 10,133 | $ | 2,620 | $ | 1,264 | $ | 2,169 | $ | 16,186 | |||||||||||||||||||
Investments | 1,496 | 510 | 518 | 679 | 3,203 | ||||||||||||||||||||||||
11,629 | 3,130 | 1,782 | 2,848 | 19,389 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Non-maturity deposits | 9,130 | — | — | — | 9,130 | ||||||||||||||||||||||||
Time deposits | 407 | 558 | 678 | 929 | 2,572 | ||||||||||||||||||||||||
Borrowings | 1,412 | 757 | 12 | 18 | 2,199 | ||||||||||||||||||||||||
10,949 | 1,315 | 690 | 947 | 13,901 | |||||||||||||||||||||||||
Off-balance sheet | 550 | 530 | — | (100) | 980 | ||||||||||||||||||||||||
Period Gap (assets - liabilities + off-balance sheet) | $ | 1,230 | $ | 2,345 | $ | 1,092 | $ | 1,801 | $ | 6,468 | |||||||||||||||||||
Cumulative Gap | $ | 1,230 | $ | 3,575 | $ | 4,667 | $ | 6,468 | |||||||||||||||||||||
Cumulative Gap to Assets | 3.7 | % | 10.9 | % | 14.2 | % | 19.6 | % |
December 31, | 2020 | 2019 |
ALCO
Limits |
||||||||||||||
Net interest income change (12 months): | |||||||||||||||||
+ 300 basis points | 17.9 | % | 6.5 | % | n/a | ||||||||||||
+ 200 basis points | 12.0 | 4.6 | (5.0) | % | |||||||||||||
+ 100 basis points | 5.9 | 2.5 | (5.0) | ||||||||||||||
– 100 basis points | (0.4) | (4.1) | (5.0) | ||||||||||||||
Economic value of equity: | |||||||||||||||||
+ 300 basis points | 8.8 | (2.0) | (25.0) | ||||||||||||||
+ 200 basis points | 7.1 | (0.5) | (15.0) | ||||||||||||||
+ 100 basis points | 4.5 | 0.2 | (10.0) | ||||||||||||||
– 100 basis points | (9.4) | (3.8) | (10.0) |
Year Ended December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 277,965 | $ | 379,208 | $ | 364,817 | $ | 191,163 | $ | 162,850 | |||||||||||||||||||
Merger-related expense | — | — | — | 56,513 | 37,439 | ||||||||||||||||||||||||
Tax benefit of merger-related expense | — | — | — | (18,846) | (12,550) | ||||||||||||||||||||||||
Merger-related net securities gains | — | — | — | (2,609) | — | ||||||||||||||||||||||||
Tax expense of merger-related net securities gains | — | — | — | 913 | — | ||||||||||||||||||||||||
Reduction in valuation of deferred tax assets | — | — | — | 54,042 | — | ||||||||||||||||||||||||
COVID-19 expense | 11,276 | — | — | — | — | ||||||||||||||||||||||||
Tax benefit of COVID-19 expense | (2,368) | — | — | — | — | ||||||||||||||||||||||||
Discretionary 401(k) contribution | — | — | 874 | — | — | ||||||||||||||||||||||||
Tax benefit of discretionary 401(k) contribution | — | — | (184) | — | — | ||||||||||||||||||||||||
Gain on sale of Visa class B stock | (13,818) | — | — | — | — | ||||||||||||||||||||||||
Tax expense of gain on sale of Visa class B stock | 2,902 | — | — | — | — | ||||||||||||||||||||||||
Loss on FHLB debt extinguishment and related hedge terminations | 25,611 | — | — | — | — | ||||||||||||||||||||||||
Tax benefit of loss on FHLB debt extinguishment and related hedge terminations | (5,378) | — | — | — | — | ||||||||||||||||||||||||
Gain on sale of subsidiary | — | — | (5,135) | — | — | ||||||||||||||||||||||||
Tax expense of gain on sale of subsidiary | — | — | 1,078 | — | — | ||||||||||||||||||||||||
Branch consolidation costs | 18,745 | 4,505 | 6,616 | — | — | ||||||||||||||||||||||||
Tax benefit of branch consolidation costs | (3,936) | (946) | (1,389) | — | — | ||||||||||||||||||||||||
Service charge refunds | 3,780 | 4,279 | — | — | — | ||||||||||||||||||||||||
Tax benefit of service charge refunds | (794) | (899) | — | — | — | ||||||||||||||||||||||||
Operating net income available to common stockholders (non-GAAP) | $ | 313,985 | $ | 386,147 | $ | 366,677 | $ | 281,176 | $ | 187,739 |
Year Ended December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
Net income per diluted common share | $ | 0.85 | $ | 1.16 | $ | 1.12 | $ | 0.63 | $ | 0.78 | |||||||||||||||||||
Merger-related expense | — | — | — | 0.19 | 0.18 | ||||||||||||||||||||||||
Tax benefit of merger-related expense | — | — | — | (0.06) | (0.06) | ||||||||||||||||||||||||
Merger-related net securities gains | — | — | — | (0.01) | — | ||||||||||||||||||||||||
Tax expense of merger-related net securities gains | — | — | — | — | — | ||||||||||||||||||||||||
Reduction in valuation of deferred tax assets | — | — | — | 0.18 | — | ||||||||||||||||||||||||
COVID-19 expense | 0.03 | — | — | — | — | ||||||||||||||||||||||||
Tax benefit of COVID-19 expense | (0.01) | — | — | — | — | ||||||||||||||||||||||||
Discretionary 401(k) contribution | — | — | — | — | — | ||||||||||||||||||||||||
Tax benefit of discretionary 401(k) contribution | — | — | — | — | — | ||||||||||||||||||||||||
Gain on sale of Visa class B stock | (0.04) | — | — | — | — | ||||||||||||||||||||||||
Tax expense of gain on sale of Visa class B stock | 0.01 | — | — | — | — | ||||||||||||||||||||||||
Loss on FHLB debt extinguishment and related hedge terminations | 0.08 | — | — | — | — | ||||||||||||||||||||||||
Tax benefit of loss on FHLB debt extinguishment and related hedge terminations | (0.02) | — | — | — | — | ||||||||||||||||||||||||
Gain on sale of subsidiary | — | — | (0.01) | — | — | ||||||||||||||||||||||||
Tax expense of gain on sale of subsidiary | — | — | 0.01 | — | — | ||||||||||||||||||||||||
Branch consolidation costs | 0.06 | 0.01 | 0.02 | — | — | ||||||||||||||||||||||||
Tax benefit of branch consolidation costs | (0.01) | — | (0.01) | — | — | ||||||||||||||||||||||||
Service charge refunds | 0.01 | 0.01 | — | — | — | ||||||||||||||||||||||||
Tax benefit of service charge refunds | — | — | — | — | — | ||||||||||||||||||||||||
Operating earnings per diluted common share (non-GAAP) | $ | 0.96 | $ | 1.18 | $ | 1.13 | $ | 0.93 | $ | 0.90 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Net income available to common stockholders | $ | 277,965 | $ | 379,208 | $ | 364,817 | |||||||||||
Amortization of intangibles, net of tax | 10,556 | 11,192 | 12,365 | ||||||||||||||
Tangible net income available to common stockholders (non-GAAP) | $ | 288,521 | $ | 390,400 | $ | 377,182 | |||||||||||
Average total stockholders’ equity | $ | 4,904,300 | $ | 4,757,465 | $ | 4,490,833 | |||||||||||
Less: Average preferred stockholders’ equity | (106,882) | (106,882) | (106,882) | ||||||||||||||
Less: Average intangible assets (1)
|
(2,322,981) | (2,331,630) | (2,334,727) | ||||||||||||||
Average tangible common equity (non-GAAP) | $ | 2,474,437 | $ | 2,318,953 | $ | 2,049,224 | |||||||||||
Return on average tangible common equity (non-GAAP) | 11.66 | % | 16.84 | % | 18.41 | % |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Net income | $ | 286,006 | $ | 387,249 | $ | 372,858 | |||||||||||
Amortization of intangibles, net of tax | 10,556 | 11,192 | 12,365 | ||||||||||||||
Tangible net income (non-GAAP) | $ | 296,562 | $ | 398,441 | $ | 385,223 | |||||||||||
Average total assets | $ | 36,607,430 | $ | 33,850,763 | $ | 32,138,497 | |||||||||||
Less: Average intangible assets (1)
|
(2,322,981) | (2,331,630) | (2,334,727) | ||||||||||||||
Average tangible assets (non-GAAP) | $ | 34,284,449 | $ | 31,519,133 | $ | 29,803,770 | |||||||||||
Return on average tangible assets (non-GAAP) | 0.87 | % | 1.26 | % | 1.29 | % |
December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||
Total stockholders’ equity | $ | 4,958,903 | $ | 4,883,198 | $ | 4,608,285 | |||||||||||
Less: Preferred stockholders’ equity | (106,882) | (106,882) | (106,882) | ||||||||||||||
Less: Intangible assets (1) | (2,316,527) | (2,329,545) | (2,333,375) | ||||||||||||||
Tangible common equity (non-GAAP) | $ | 2,535,494 | $ | 2,446,771 | $ | 2,168,028 | |||||||||||
Ending common shares outstanding | 321,629,529 | 325,014,560 | 324,314,529 | ||||||||||||||
Tangible book value per common share (non-GAAP) | $ | 7.88 | $ | 7.53 | $ | 6.68 |
December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Total stockholders' equity | $ | 4,958,903 | $ | 4,883,198 | $ | 4,608,285 | |||||||||||
Less: Intangible assets (1)
|
(2,316,527) | (2,329,545) | (2,333,375) | ||||||||||||||
Tangible equity (non-GAAP) | $ | 2,642,376 | $ | 2,553,653 | $ | 2,274,910 | |||||||||||
Total assets | $ | 37,354,351 | $ | 34,615,016 | $ | 33,101,840 | |||||||||||
Less: Intangible assets (1)
|
(2,316,527) | (2,329,545) | (2,333,375) | ||||||||||||||
Tangible assets (non-GAAP) | $ | 35,037,824 | $ | 32,285,471 | $ | 30,768,465 | |||||||||||
Tangible equity / tangible assets (period-end) (non-GAAP) | 7.54 | % | 7.91 | % | 7.39 | % |
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Total stockholders' equity | $ | 4,958,903 | $ | 4,883,198 | $ | 4,608,285 | |||||||||||
Less: Preferred stockholders' equity | (106,882) | (106,882) | (106,882) | ||||||||||||||
Less: Intangible assets (1)
|
(2,316,527) | (2,329,545) | (2,333,375) | ||||||||||||||
Tangible common equity (non-GAAP) | $ | 2,535,494 | $ | 2,446,771 | $ | 2,168,028 | |||||||||||
Total assets | $ | 37,354,351 | $ | 34,615,016 | $ | 33,101,840 | |||||||||||
Less: Intangible assets (1)
|
(2,316,527) | (2,329,545) | (2,333,375) | ||||||||||||||
Tangible assets (non-GAAP) | $ | 35,037,824 | $ | 32,285,471 | $ | 30,768,465 | |||||||||||
Tangible common equity / tangible assets (period-end) (non-GAAP) | 7.24 | % | 7.58 | % | 7.05 | % |
December 31 | 2020 | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||
ACL - loans | $ | 363,107 | |||||||||||||||
Loans and leases | $ | 25,458,645 | |||||||||||||||
Less: PPP loans outstanding | (2,158,452) | ||||||||||||||||
Loans and leases, excluding PPP loans outstanding (non-GAAP) | $ | 23,300,193 | |||||||||||||||
ACL loans / loans and leases, excluding PPP (non-GAAP) | 1.56 | % |
(dollars in thousands) | 2020 | 2019 | 2018 | ||||||||||||||
Net interest income | $ | 922,082 | $ | 917,239 | $ | 932,489 | |||||||||||
Non-interest income | 294,556 | 294,266 | 275,651 | ||||||||||||||
Less non-interest expense | (750,349) | (696,128) | (694,532) | ||||||||||||||
Pre-provision net revenue (as reported) | $ | 466,289 | $ | 515,377 | $ | 513,608 | |||||||||||
Adjustments: | |||||||||||||||||
Add: Branch consolidation costs (non-interest income) | $ | — | $ | 1,722 | $ | 3,677 | |||||||||||
Add: Service charge refunds (non-interest income) | 3,780 | 4,279 | — | ||||||||||||||
Less: Gain on sale of Visa class B stock (non-interest income) | (13,818) | — | — | ||||||||||||||
Add: Loss on FHLB debt extinguishment and related hedge terminations (non-interest income) | 25,611 | — | — | ||||||||||||||
Less: Gain on sale of subsidiary (non-interest income) | — | — | (5,135) | ||||||||||||||
Add: COVID - 19 expense (non-interest expense) | 11,276 | — | — | ||||||||||||||
Add: Discretionary 401(k) contribution (non-interest expense) | — | — | 874 | ||||||||||||||
Add: Branch consolidation costs (non-interest expense) | 18,745 | 2,783 | 2,939 | ||||||||||||||
Add: Tax credit-related impairment project (non-interest expense) | 4,101 | 3,213 | — | ||||||||||||||
Pre-provision net revenue (operating) (non-GAAP) | $ | 515,984 | $ | 527,374 | $ | 515,963 | |||||||||||
Average total shareholders’ equity | $ | 4,904,300 | $ | 4,757,465 | $ | 4,490,833 | |||||||||||
Less: Average preferred shareholders’ equity | (106,882) | (106,882) | (106,882) | ||||||||||||||
Less: Average intangible assets (1)
|
(2,322,981) | (2,331,630) | (2,334,727) | ||||||||||||||
Average tangible common equity (non-GAAP) | $ | 2,474,437 | $ | 2,318,953 | $ | 2,049,224 | |||||||||||
Pre-provision net revenue (reported) / average tangible common equity (non-GAAP) | 18.84 | % | 22.22 | % | 25.06 | % | |||||||||||
Pre-provision net revenue (operating) / average tangible common equity (non-GAAP) | 20.85 | % | 22.74 | % | 25.18 | % | |||||||||||
(1) Excludes loan servicing rights
|
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Non-interest expense | $ | 750,349 | $ | 696,128 | $ | 694,532 | |||||||||||
Less: Amortization of intangibles | (13,362) | (14,167) | (15,652) | ||||||||||||||
Less: OREO expense | (4,434) | (4,652) | (6,359) | ||||||||||||||
Less: COVID-19 expense | (11,276) | — | — | ||||||||||||||
Less: Discretionary 401(k) contribution | — | — | (874) | ||||||||||||||
Less: Branch consolidation costs | (18,745) | (2,783) | (2,939) | ||||||||||||||
Less: Tax credit-related project impairment | (4,101) | (3,213) | — | ||||||||||||||
Adjusted non-interest expense | $ | 698,431 | $ | 671,313 | $ | 668,708 | |||||||||||
Net interest income | $ | 922,082 | $ | 917,239 | $ | 932,489 | |||||||||||
Taxable equivalent adjustment | 12,470 | 14,121 | 13,270 | ||||||||||||||
Non-interest income | 294,556 | 294,266 | 275,651 | ||||||||||||||
Less: Net securities gains | (282) | (70) | (34) | ||||||||||||||
Less: Gain on sale of Visa class B stock | (13,818) | — | — | ||||||||||||||
Add: Loss on FHLB debt extinguishment and related hedge terminations | 25,611 | — | — | ||||||||||||||
Less: Gain on sale of subsidiary | — | — | (5,135) | ||||||||||||||
Add: Branch consolidation costs | — | 1,722 | 3,677 | ||||||||||||||
Add: Service charge refunds | 3,780 | 4,279 | — | ||||||||||||||
Adjusted net interest income (FTE) + non-interest income | $ | 1,244,399 | $ | 1,231,557 | $ | 1,219,918 | |||||||||||
Efficiency ratio (FTE) (non-GAAP) | 56.13 | % | 54.51 | % | 54.82 | % |
/s/ Vincent J. Delie, Jr. | ||
By: Vincent J. Delie, Jr. | ||
Chairman, President and Chief Executive Officer | ||
/s/ Vincent J. Calabrese, Jr. | ||
By: Vincent J. Calabrese, Jr. | ||
Chief Financial Officer |
Valuation of Goodwill at the Community Banking reporting unit | ||||||||
Description of the Matter |
At December 31, 2020, the Company’s goodwill related to the Community Banking reporting unit was approximately $2.2 billion. As discussed in Note 1 and Note 7 to the consolidated financial statements, goodwill is tested for impairment at least annually at the reporting unit level. The Company's goodwill is initially assigned to its reporting units as of the acquisition date. In 2020, management concluded under its qualitative assessment that it was more likely than not that the fair value of the Community Banking reporting unit was below its carrying amount due to a sustained decline in bank stock valuations, which was primarily attributable to the systemic uncertainty of COVID-19 and its impact on the global economy. In response, management performed a quantitative goodwill impairment test to reach the conclusion that there was no impairment in 2020.
Auditing management's annual goodwill impairment test was complex and highly judgmental due to the significant estimation required to determine the fair value of the reporting units. In particular, the fair value estimate was sensitive to significant assumptions, such as projected future cash flows, discount rates reflecting the risk inherent in future cash flows, long-term growth rates and an evaluation of market comparables and recent transactions.
|
|||||||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment review process, including controls over management's review of the significant assumptions described above.
To test the estimated fair value of the Company's reporting units, we performed audit procedures that, with the involvement of specialists, included, among others, assessing methodologies and testing the significant assumptions discussed above and the underlying data used by the Company in its analysis. We compared the significant assumptions used by management to recent financial performance, the Company's peer group, and economic trends. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the reporting units that would result from changes in the assumptions. In addition, we tested management’s reconciliation of the fair value of the reporting units to the market capitalization of the Company.
|
|||||||
Allowance for Credit Losses | ||||||||
Description of the Matter |
On January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments, which resulted in an increase to the allowance for credit losses (ACL) from retained earnings of $51 million. At December 31, 2020, the Company’s net loan and lease portfolio was $25.5 billion with an associated ACL of $363 million. As discussed in Note 1 to the consolidated financial statements, the ACL is based on management’s evaluation of current estimate of lifetime credit losses at the balance sheet date. Management makes the estimate using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts under the CECL methodology. The ACL is composed of three components including quantitative reserves, including the economic forecast; asset specific reserves; and qualitative reserves. The qualitative reserves include among others: regulatory, legal and technological environments; competition; forecast uncertainty; and events such as natural disasters and other relevant factors.
Auditing the ACL involves a high degree of subjectivity due to the qualitative factor adjustments. Management’s identification and measurement of the qualitative factor adjustments is highly judgmental and could have a significant effect on the ACL.
|
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design, and tested the operating effectiveness of the Company’s controls over the ACL process, which include, among others, management’s review and approval controls designed to assess the need for and level of qualitative factor adjustments to the ACL and the reliability of the data utilized to support management’s assessment.
To test the qualitative factor adjustments, we evaluated the appropriateness of management’s methodology and assessed the basis for the adjustments and whether all relevant risks were reflected in the ACL. Regarding the measurement of the qualitative factors, we evaluated the completeness, accuracy and relevance of the underlying internal and external data utilized in management’s estimate and considered the existence of new or contrary information. We evaluated the overall ACL, inclusive of the qualitative factor adjustments, and whether the amount appropriately reflects a reasonable estimate of lifetime losses by comparing the overall ACL to historical losses.
|
December 31 | |||||||||||
2020 | 2019 | ||||||||||
Assets | |||||||||||
Cash and due from banks | $ | 369 | $ | 407 | |||||||
Interest-bearing deposits with banks | 1,014 | 192 | |||||||||
Cash and Cash Equivalents | 1,383 | 599 | |||||||||
Debt securities available for sale (amortized cost of $3,380 and $3,275; allowance for credit losses of $0)
|
3,463 | 3,289 | |||||||||
Debt securities held to maturity (fair value of $2,973 and $3,305; allowance for credit losses of $0)
|
2,868 | 3,275 | |||||||||
Loans held for sale (includes $144 and $41 measured at fair value) (1)
|
154 | 51 | |||||||||
Loans and leases, net of unearned income of $77 and $1
|
25,459 | 23,289 | |||||||||
Allowance for credit losses | (363) | (196) | |||||||||
Net Loans and Leases | 25,096 | 23,093 | |||||||||
Premises and equipment, net | 332 | 333 | |||||||||
Goodwill | 2,262 | 2,262 | |||||||||
Core deposit and other intangible assets, net | 54 | 67 | |||||||||
Bank owned life insurance | 549 | 544 | |||||||||
Other assets | 1,193 | 1,102 | |||||||||
Total Assets | $ | 37,354 | $ | 34,615 | |||||||
Liabilities | |||||||||||
Deposits: | |||||||||||
Non-interest-bearing demand | $ | 9,042 | $ | 6,384 | |||||||
Interest-bearing demand | 13,157 | 11,049 | |||||||||
Savings | 3,261 | 2,625 | |||||||||
Certificates and other time deposits | 3,662 | 4,728 | |||||||||
Total Deposits | 29,122 | 24,786 | |||||||||
Short-term borrowings | 1,804 | 3,216 | |||||||||
Long-term borrowings | 1,095 | 1,340 | |||||||||
Other liabilities | 374 | 390 | |||||||||
Total Liabilities | 32,395 | 29,732 | |||||||||
Stockholders’ Equity | |||||||||||
Preferred stock - $0.01 par value; liquidation preference of $1,000 per share
|
|||||||||||
Authorized – 20,000,000 shares
|
|||||||||||
Issued – 110,877 shares
|
107 | 107 | |||||||||
Common stock - $0.01 par value
|
|||||||||||
Authorized – 500,000,000 shares
|
|||||||||||
Issued – 328,057,368 and 327,242,364 shares
|
3 | 3 | |||||||||
Additional paid-in capital | 4,087 | 4,067 | |||||||||
Retained earnings | 869 | 798 | |||||||||
Accumulated other comprehensive loss | (39) | (65) | |||||||||
Treasury stock – 6,427,839 and 2,227,804 shares at cost
|
(68) | (27) | |||||||||
Total Stockholders’ Equity | 4,959 | 4,883 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 37,354 | $ | 34,615 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Interest Income | |||||||||||||||||
Loans and leases, including fees | $ | 990 | $ | 1,085 | $ | 1,022 | |||||||||||
Securities: | |||||||||||||||||
Taxable | 106 | 126 | 119 | ||||||||||||||
Tax-exempt | 32 | 32 | 28 | ||||||||||||||
Other | 2 | 4 | 1 | ||||||||||||||
Total Interest Income | 1,130 | 1,247 | 1,170 | ||||||||||||||
Interest Expense | |||||||||||||||||
Deposits | 133 | 217 | 142 | ||||||||||||||
Short-term borrowings | 38 | 80 | 75 | ||||||||||||||
Long-term borrowings | 37 | 33 | 21 | ||||||||||||||
Total Interest Expense | 208 | 330 | 238 | ||||||||||||||
Net Interest Income | 922 | 917 | 932 | ||||||||||||||
Provision for credit losses | 123 | 44 | 61 | ||||||||||||||
Net Interest Income After Provision for Credit Losses | 799 | 873 | 871 | ||||||||||||||
Non-Interest Income | |||||||||||||||||
Service charges | 108 | 124 | 126 | ||||||||||||||
Trust services | 31 | 28 | 26 | ||||||||||||||
Insurance commissions and fees | 24 | 20 | 18 | ||||||||||||||
Securities commissions and fees | 17 | 17 | 18 | ||||||||||||||
Capital markets income | 39 | 33 | 21 | ||||||||||||||
Mortgage banking operations | 50 | 32 | 22 | ||||||||||||||
Dividends on non-marketable equity securities | 14 | 19 | 16 | ||||||||||||||
Bank owned life insurance | 14 | 12 | 13 | ||||||||||||||
Loss on debt extinguishment | (17) | — | — | ||||||||||||||
Other | 14 | 9 | 16 | ||||||||||||||
Total Non-Interest Income
|
294 | 294 | 276 | ||||||||||||||
Non-Interest Expense | |||||||||||||||||
Salaries and employee benefits | 406 | 375 | 370 | ||||||||||||||
Net occupancy | 71 | 59 | 60 | ||||||||||||||
Equipment | 66 | 62 | 55 | ||||||||||||||
Amortization of intangibles | 13 | 14 | 16 | ||||||||||||||
Outside services | 69 | 64 | 66 | ||||||||||||||
FDIC insurance | 20 | 23 | 33 | ||||||||||||||
Bank shares and franchise taxes | 14 | 12 | 12 | ||||||||||||||
Other | 91 | 87 | 83 | ||||||||||||||
Total Non-Interest Expense
|
750 | 696 | 695 | ||||||||||||||
Income Before Income Taxes | 343 | 471 | 452 | ||||||||||||||
Income taxes | 57 | 84 | 79 | ||||||||||||||
Net Income | 286 | 387 | 373 | ||||||||||||||
Preferred stock dividends | 8 | 8 | 8 | ||||||||||||||
Net Income Available to Common Stockholders | $ | 278 | $ | 379 | $ | 365 | |||||||||||
Earnings per Common Share | |||||||||||||||||
Basic | $ | 0.86 | $ | 1.17 | $ | 1.13 | |||||||||||
Diluted | $ | 0.85 | $ | 1.16 | $ | 1.12 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income | $ | 286 | $ | 387 | $ | 373 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Securities available for sale: | |||||||||||||||||
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $15, $16 and $(5)
|
54 | 57 | (17) | ||||||||||||||
Derivative instruments: | |||||||||||||||||
Unrealized losses arising during the period, net of tax benefit of $(11), $(5) and $(1)
|
(40) | (17) | (2) | ||||||||||||||
Reclassification adjustment for gains (losses) included in net income, net of tax expense (benefit) of $3, $0 and $0
|
18 | (2) | (2) | ||||||||||||||
Pension and postretirement benefit obligations: | |||||||||||||||||
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $2, $(1) and $1
|
(6) | 3 | (2) | ||||||||||||||
Other Comprehensive Income (Loss) | 26 | 41 | (23) | ||||||||||||||
Comprehensive Income | $ | 312 | $ | 428 | $ | 350 |
Preferred
Stock |
Common
Stock |
Additional
Paid-In Capital |
Retained
Earnings |
Accumulated
Other Comprehensive Income (Loss) |
Treasury
Stock |
Total | |||||||||||||||||||||||||||||||||||
Balance at January 1, 2018 | $ | 107 | $ | 3 | $ | 4,033 | $ | 368 | $ | (83) | $ | (19) | $ | 4,409 | |||||||||||||||||||||||||||
Comprehensive income (loss) | 373 | (23) | 350 | ||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Preferred stock: $72.52/share
|
(8) | (8) | |||||||||||||||||||||||||||||||||||||||
Common stock: $0.48/share
|
(157) | (157) | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | 6 | (2) | 4 | |||||||||||||||||||||||||||||||||||||
Restricted stock compensation | 10 | 10 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 107 | 3 | 4,049 | 576 | (106) | (21) | 4,608 | ||||||||||||||||||||||||||||||||||
Comprehensive income | 387 | 41 | 428 | ||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Preferred stock: $72.52/share
|
(8) | (8) | |||||||||||||||||||||||||||||||||||||||
Common stock: $0.48/share
|
(157) | (157) | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | 6 | (6) | — | |||||||||||||||||||||||||||||||||||||
Restricted stock compensation | 12 | 12 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 107 | 3 | 4,067 | 798 | (65) | (27) | 4,883 | ||||||||||||||||||||||||||||||||||
Comprehensive income | 286 | 26 | 312 | ||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Preferred stock: $72.52/share
|
(8) | (8) | |||||||||||||||||||||||||||||||||||||||
Common stock: $0.48/share
|
(157) | (157) | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | 4 | (3) | 1 | |||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (38) | (38) | |||||||||||||||||||||||||||||||||||||||
Restricted stock compensation | 16 | 16 | |||||||||||||||||||||||||||||||||||||||
Adoption of new accounting standards | (50) | (50) | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 107 | $ | 3 | $ | 4,087 | $ | 869 | $ | (39) | $ | (68) | $ | 4,959 |
Year Ended December 31 | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Operating Activities | |||||||||||||||||
Net income | $ | 286 | $ | 387 | $ | 373 | |||||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||||||||
Depreciation, amortization and accretion | (3) | 45 | 109 | ||||||||||||||
Provision for credit losses | 123 | 44 | 61 | ||||||||||||||
Deferred tax expense (benefit) | (18) | 33 | 33 | ||||||||||||||
Loans originated for sale | (1,886) | (1,481) | (1,117) | ||||||||||||||
Loans sold | 1,830 | 1,495 | 1,210 | ||||||||||||||
Net gain on sale of loans | (47) | (25) | (22) | ||||||||||||||
Net change in: | |||||||||||||||||
Interest receivable | 19 | (8) | (6) | ||||||||||||||
Interest payable | (8) | 1 | 7 | ||||||||||||||
Bank owned life insurance, excluding purchases | (6) | (7) | (10) | ||||||||||||||
Other, net | (177) | (225) | (27) | ||||||||||||||
Net cash flows provided by operating activities | 113 | 259 | 611 | ||||||||||||||
Investing Activities | |||||||||||||||||
Net change in loans and leases, excluding sales and transfers | (2,604) | (1,427) | (1,394) | ||||||||||||||
Debt securities available for sale: | |||||||||||||||||
Purchases | (2,360) | (655) | (1,200) | ||||||||||||||
Maturities/payments | 2,244 | 770 | 592 | ||||||||||||||
Debt securities held to maturity: | |||||||||||||||||
Purchases | (301) | (494) | (387) | ||||||||||||||
Maturities/payments | 703 | 468 | 370 | ||||||||||||||
Increase in premises and equipment | (41) | (46) | (35) | ||||||||||||||
Net cash received in business combinations and divestitures | — | — | 134 | ||||||||||||||
Loans sold, not originated for sale | 537 | 262 | — | ||||||||||||||
Other, net | — | (9) | — | ||||||||||||||
Net cash flows used in investing activities | (1,822) | (1,131) | (1,920) | ||||||||||||||
Financing Activities | |||||||||||||||||
Net change in: | |||||||||||||||||
Demand (non-interest-bearing and interest-bearing) and savings accounts | 5,402 | 1,873 | 406 | ||||||||||||||
Time deposits | (1,065) | (539) | 653 | ||||||||||||||
Short-term borrowings | (1,412) | (913) | 450 | ||||||||||||||
Proceeds from issuance of long-term borrowings | 328 | 954 | 37 | ||||||||||||||
Repayment of long-term borrowings | (574) | (239) | (77) | ||||||||||||||
Repurchases of common stock | (38) | — | — | ||||||||||||||
Cash dividends paid: | |||||||||||||||||
Preferred stock | (8) | (8) | (8) | ||||||||||||||
Common stock | (157) | (157) | (157) | ||||||||||||||
Other, net | 17 | 12 | 14 | ||||||||||||||
Net cash flows provided by financing activities | 2,493 | 983 | 1,318 | ||||||||||||||
Net Increase in Cash and Cash Equivalents | 784 | 111 | 9 | ||||||||||||||
Cash and cash equivalents at beginning of year | 599 | 488 | 479 | ||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 1,383 | $ | 599 | $ | 488 |
January 1, 2020 | |||||||||||||||||
(in millions) | As Reported Under ASC 326 | Pre-ASC 326 Adoption | Impact of ASC 326 Adoption | ||||||||||||||
Assets: | |||||||||||||||||
Allowance for credit losses on debt securities held-to-maturity | |||||||||||||||||
States of the U.S. and political subdivisions (municipals) | $ | — | $ | — | $ | — | |||||||||||
Loans | |||||||||||||||||
Commercial real estate | $ | 138 | $ | 60 | $ | 78 | |||||||||||
Commercial and industrial | 65 | 53 | 12 | ||||||||||||||
Commercial leases | 11 | 11 | — | ||||||||||||||
Commercial other | — | 9 | (9) | ||||||||||||||
Direct installment | 24 | 13 | 11 | ||||||||||||||
Residential mortgages | 32 | 22 | 10 | ||||||||||||||
Indirect installment | 21 | 19 | 2 | ||||||||||||||
Consumer lines of credit | 10 | 9 | 1 | ||||||||||||||
Allowance for credit losses on loans | $ | 301 | $ | 196 | $ | 105 | |||||||||||
Liabilities: | |||||||||||||||||
Allowance for credit losses on off-balance sheet credit exposures | $ | 13 | $ | 3 | $ | 10 |
Standard | Description | Financial Statements Impact | ||||||||||||
Credit Losses
|
||||||||||||||
ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses
ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments
ASU 2019-05, Financial Instruments-Credit Losses, (Topic 326): Targeted Transition Relief
ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses
|
These Updates replace the current long-standing incurred loss impairment methodology with a methodology that reflects current expected credit losses (commonly referred to as CECL) for most financial assets measured at amortized cost and certain other instruments, including loans, HTM debt securities, net investments in leases and off-balance sheet credit exposures except for unconditionally cancellable commitments. CECL requires loss estimates for the remaining life of the financial asset at the time the asset is originated or acquired, considering historical experience, current conditions and R&S forecasts. In addition, the Update will require the use of a modified AFS debt security impairment model and eliminate the current accounting for PCI loans and debt securities.
|
On January 1, 2020, we adopted CECL using the modified retrospective method for financial assets measured at amortized cost, net investments in leases and off-balance sheet credit exposures. While these Updates change the measurement of the ACL, it does not change the credit risk of our lending portfolios or the ultimate losses in those portfolios. However, the CECL ACL methodology will produce higher volatility in the quarterly provision for credit losses than our prior reserve process.
We created a cross-functional management steering group to govern implementation and the Audit and Risk Committees and the Board of Directors received regular updates. For financial assets measured at amortized cost we have implemented a new modeling platform and integrated other auxiliary models to support a calculation of expected credit losses under CECL. We have made decisions on segmentation, a R&S forecast period, a reversion method and period and a historical loss forecast covering the remaining contractual life, adjusted for prepayments as well as other criteria.
Based on our portfolio composition and forecasts of relatively stable macroeconomic conditions over the next two years at the adoption date, we recorded an overall ACL of $301 million. This reflected an increase on the originated portfolio of $55 million, primarily driven by our longer duration commercial and consumer real estate loans and a "gross-up" for PCI loans of $50 million. There is no capital impact related to the PCI loans at adoption. The impact for the adoption of CECL was a reduction to retained earnings of $51 million, which included a $10 million increase to the AULC.
The impact upon adoption was dependent on the portfolio composition and credit quality, as well as historical experience, current conditions and forecasts of economic conditions and interest rates at the time of adoption.
The impact to our AFS and HTM debt securities was immaterial.
Model development, as well as the development of policies and procedures and, internal controls were complete at the time of adoption.
|
||||||||||||
Standard | Description | Financial Statements Impact | ||||||||||||
Reference Rate Reform
|
||||||||||||||
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting
ASU 2021-01, Reference Rate Reform (Topic 848): Scope
|
These Updates provide temporary optional expedients and exceptions for applying GAAP to financial contracts, hedging relationships and other transactions affected by RRR if certain criteria are met.
The following optional expedients, exceptions and elections are permitted for certain contracts that are modified because of RRR and meet certain scope guidance:
•Contract modifications may be accounted for prospectively as a continuation of existing contracts rather than a new contract without remeasurement or reassessment of significant contract amendments
•modifications of leases to be accounted for as a continuation of the existing contracts without reassessment of lease classification and discount rate or remeasurement of lease payments
•to not reassess the original conclusion about whether a contract contains an embedded derivative that is clearly and closely related to the host contract
•changes to critical terms of hedging relationships, on a hedge-by-hedge basis, without designation of the hedging relationship and various practical expedients and elections designed to allow hedge accounting to continue uninterrupted
•modifications of certain derivatives modified to change the rate used for margining, discounting or contract price alignment.
The Updates also allow an entity to make a one-time election to sell and/or transfer to HTM securities that are affected by RRR and were classified as HTM before January 1, 2020.
|
RRR Updates are effective for all entities from the beginning of an interim period that includes or is subsequent to March 12, 2020 and terminates on December 31, 2022 on a full retrospective or prospective basis.
Although we do not expect RRR to have a material accounting impact on our consolidated financial position or results of operations, the Updates will ease the administrative burden in accounting for the effects of RRR.
We adopted these updates on October 1, 2020 by retrospective application. The adoption did not have a material impact on our consolidated financial position or results of operations.
We will continue to assess the impact of adoption through the termination date of these Updates on December 31, 2022.
|
(in millions) |
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value |
|||||||||||||||||||||||||
Debt Securities AFS: | |||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
U.S. Treasury | $ | 600 | $ | — | $ | — | $ | 600 | |||||||||||||||||||||
U.S. government agencies | 172 | — | — | 172 | |||||||||||||||||||||||||
U.S. government-sponsored entities | 160 | 1 | — | 161 | |||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||
Agency mortgage-backed securities | 959 | 35 | — | 994 | |||||||||||||||||||||||||
Agency collateralized mortgage obligations | 1,094 | 31 | (1) | 1,124 | |||||||||||||||||||||||||
Commercial mortgage-backed securities | 361 | 17 | — | 378 | |||||||||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | 32 | — | — | 32 | |||||||||||||||||||||||||
Other debt securities | 2 | — | — | 2 | |||||||||||||||||||||||||
Total debt securities AFS | $ | 3,380 | $ | 84 | $ | (1) | $ | 3,463 |
(in millions) |
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value |
|||||||||||||||||||||||||
Debt Securities AFS: | |||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
U.S. government agencies | $ | 152 | $ | — | $ | (1) | $ | 151 | |||||||||||||||||||||
U.S. government-sponsored entities | 225 | 1 | — | 226 | |||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||
Agency mortgage-backed securities | 1,310 | 7 | (3) | 1,314 | |||||||||||||||||||||||||
Agency collateralized mortgage obligations | 1,234 | 10 | (4) | 1,240 | |||||||||||||||||||||||||
Commercial mortgage-backed securities | 341 | 6 | (2) | 345 | |||||||||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | 11 | — | — | 11 | |||||||||||||||||||||||||
Other debt securities | 2 | — | — | 2 | |||||||||||||||||||||||||
Total debt securities AFS | $ | 3,275 | $ | 24 | $ | (10) | $ | 3,289 |
(in millions) |
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value |
|||||||||||||||||||||||||
Debt Securities HTM: | |||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
U.S. Treasury | $ | 1 | $ | — | $ | — | $ | 1 | |||||||||||||||||||||
U.S. government agencies | 1 | — | — | 1 | |||||||||||||||||||||||||
U.S. government-sponsored entities | 120 | 1 | — | 121 | |||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||
Agency mortgage-backed securities | 769 | 29 | — | 798 | |||||||||||||||||||||||||
Agency collateralized mortgage obligations | 562 | 17 | — | 579 | |||||||||||||||||||||||||
Commercial mortgage-backed securities | 307 | 10 | — | 317 | |||||||||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | 1,108 | 48 | — | 1,156 | |||||||||||||||||||||||||
Total debt securities HTM | $ | 2,868 | $ | 105 | $ | — | $ | 2,973 | |||||||||||||||||||||
(in millions) |
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value |
|||||||||||||||||||
Debt Securities HTM: | |||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
U.S. Treasury | $ | 1 | $ | — | $ | — | $ | 1 | |||||||||||||||
U.S. government agencies | 1 | — | — | 1 | |||||||||||||||||||
U.S. government-sponsored entities | 175 | — | — | 175 | |||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||
Agency mortgage-backed securities | 949 | 8 | (2) | 955 | |||||||||||||||||||
Agency collateralized mortgage obligations | 721 | 5 | (6) | 720 | |||||||||||||||||||
Commercial mortgage-backed securities | 308 | 3 | (2) | 309 | |||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | 1,120 | 26 | (2) | 1,144 | |||||||||||||||||||
Total debt securities HTM | $ | 3,275 | $ | 42 | $ | (12) | $ | 3,305 |
Available for Sale | Held to Maturity | ||||||||||||||||||||||
(in millions) |
Amortized
Cost |
Fair
Value |
Amortized
Cost |
Fair
Value |
|||||||||||||||||||
Due in one year or less | $ | 642 | $ | 642 | $ | 122 | $ | 123 | |||||||||||||||
Due after one year but within five years | 113 | 114 | 20 | 20 | |||||||||||||||||||
Due after five years but within ten years | 124 | 125 | 151 | 155 | |||||||||||||||||||
Due after ten years | 87 | 86 | 937 | 981 | |||||||||||||||||||
966 | 967 | 1,230 | 1,279 | ||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||
Agency mortgage-backed securities | 959 | 994 | 769 | 798 | |||||||||||||||||||
Agency collateralized mortgage obligations | 1,094 | 1,124 | 562 | 579 | |||||||||||||||||||
Commercial mortgage-backed securities | 361 | 378 | 307 | 317 | |||||||||||||||||||
Total debt securities | $ | 3,380 | $ | 3,463 | $ | 2,868 | $ | 2,973 |
December 31 | 2020 | 2019 | |||||||||
(dollars in millions) | |||||||||||
Securities pledged (carrying value): | |||||||||||
To secure public deposits, trust deposits and for other purposes as required by law | $ | 5,384 | $ | 4,494 | |||||||
As collateral for short-term borrowings | 402 | 285 | |||||||||
Securities pledged as a percent of total securities | 91.4 | % | 72.8 | % |
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | # |
Fair
Value |
Unrealized
Losses |
# |
Fair
Value |
Unrealized
Losses |
# |
Fair
Value |
Unrealized
Losses |
||||||||||||||||||||||||||||||||||||||||||||
Debt Securities AFS | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agencies | 1 | $ | 13 | $ | — | 16 | $ | 69 | $ | — | 17 | $ | 82 | $ | — | ||||||||||||||||||||||||||||||||||||||
U.S. government-sponsored entities | 1 | 25 | — | — | — | — | 1 | 25 | — | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency collateralized mortgage obligations | 5 | 130 | (1) | — | — | — | 5 | 130 | (1) | ||||||||||||||||||||||||||||||||||||||||||||
Other debt securities | — | — | — | 1 | 2 | — | 1 | 2 | — | ||||||||||||||||||||||||||||||||||||||||||||
Total | 7 | $ | 168 | $ | (1) | 17 | $ | 71 | $ | — | 24 | $ | 239 | $ | (1) | ||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | # |
Fair
Value |
Unrealized
Losses |
# |
Fair
Value |
Unrealized
Losses |
# |
Fair
Value |
Unrealized
Losses |
||||||||||||||||||||||||||||||||||||||||||||
Debt Securities AFS | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agencies | 5 | $ | 48 | $ | — | 15 | $ | 61 | $ | (1) | 20 | $ | 109 | $ | (1) | ||||||||||||||||||||||||||||||||||||||
U.S. government-sponsored entities | — | — | — | 6 | 130 | — | 6 | 130 | — | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency mortgage-backed securities | 13 | 200 | (1) | 24 | 314 | (2) | 37 | 514 | (3) | ||||||||||||||||||||||||||||||||||||||||||||
Agency collateralized mortgage obligations | 11 | 323 | (1) | 32 | 205 | (3) | 43 | 528 | (4) | ||||||||||||||||||||||||||||||||||||||||||||
Non-agency collateralized mortgage obligations | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 3 | 114 | (2) | — | — | — | 3 | 114 | (2) | ||||||||||||||||||||||||||||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Other debt securities | — | — | — | 1 | 2 | — | 1 | 2 | — | ||||||||||||||||||||||||||||||||||||||||||||
Total temporarily impaired debt securities AFS | 32 | $ | 685 | $ | (4) | 78 | $ | 712 | $ | (6) | 110 | $ | 1,397 | $ | (10) |
December 31 | 2020 | 2019 | |||||||||
(in millions) | |||||||||||
Federal Home Loan Bank stock | $ | 154 | $ | 256 | |||||||
Federal Reserve Bank stock | 124 | 123 | |||||||||
Other non-marketable equity securities | — | 1 | |||||||||
Total non-marketable equity securities | $ | 278 | $ | 380 |
December 31 | 2020 | 2019 | |||||||||
(in millions) | |||||||||||
Commercial real estate | $ | 9,731 | $ | 8,960 | |||||||
Commercial and industrial | 7,214 | 5,308 | |||||||||
Commercial leases | 485 | 432 | |||||||||
Other | 40 | 21 | |||||||||
Total commercial loans and leases | 17,470 | 14,721 | |||||||||
Direct installment | 2,020 | 1,821 | |||||||||
Residential mortgages | 3,433 | 3,374 | |||||||||
Indirect installment | 1,218 | 1,922 | |||||||||
Consumer lines of credit | 1,318 | 1,451 | |||||||||
Total consumer loans | 7,989 | 8,568 | |||||||||
Total loans and leases, net of unearned income | $ | 25,459 | $ | 23,289 |
December 31 | 2020 | 2019 | |||||||||
(dollars in millions) | |||||||||||
Commercial real estate: | |||||||||||
Percent owner-occupied | 28.1 | % | 30.6 | % | |||||||
Percent non-owner-occupied | 71.9 | 69.4 |
(in millions) | |||||
Balance at beginning of period | $ | 7 | |||
New loans | 2 | ||||
Repayments | (2) | ||||
Balance at end of period | $ | 7 |
Rating Category | Definition | |||||||
Pass | in general, the condition of the borrower and the performance of the loan is satisfactory or better | |||||||
Special Mention | in general, the condition of the borrower has deteriorated, requiring an increased level of monitoring | |||||||
Substandard | in general, the condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate if deficiencies are not corrected | |||||||
Doubtful | in general, the condition of the borrower has significantly deteriorated and the collection in full of both principal and interest is highly questionable or improbable |
December 31, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
COMMERCIAL | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 1,879 | $ | 1,854 | $ | 1,135 | $ | 927 | $ | 888 | $ | 1,911 | $ | 163 | $ | 8,757 | |||||||||||||||||||||||||||||||
Special Mention | 9 | 30 | 80 | 158 | 70 | 163 | 4 | 514 | |||||||||||||||||||||||||||||||||||||||
Substandard | 4 | 32 | 29 | 81 | 116 | 192 | 6 | 460 | |||||||||||||||||||||||||||||||||||||||
Total commercial real estate | 1,892 | 1,916 | 1,244 | 1,166 | 1,074 | 2,266 | 173 | 9,731 | |||||||||||||||||||||||||||||||||||||||
Commercial and Industrial: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | 3,286 | 1,007 | 590 | 304 | 120 | 311 | 1,095 | 6,713 | |||||||||||||||||||||||||||||||||||||||
Special Mention | 30 | 23 | 13 | 28 | 10 | 35 | 79 | 218 | |||||||||||||||||||||||||||||||||||||||
Substandard | 8 | 26 | 65 | 44 | 6 | 37 | 97 | 283 | |||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 3,324 | 1,056 | 668 | 376 | 136 | 383 | 1,271 | 7,214 | |||||||||||||||||||||||||||||||||||||||
Commercial Leases: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | 178 | 134 | 83 | 56 | 5 | 3 | — | 459 | |||||||||||||||||||||||||||||||||||||||
Special Mention | 1 | 1 | 4 | 4 | 1 | 2 | — | 13 | |||||||||||||||||||||||||||||||||||||||
Substandard | 7 | 2 | 2 | 1 | 1 | — | — | 13 | |||||||||||||||||||||||||||||||||||||||
Total commercial leases | 186 | 137 | 89 | 61 | 7 | 5 | — | 485 | |||||||||||||||||||||||||||||||||||||||
Other Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | — | — | — | — | — | 4 | 35 | 39 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | — | — | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||
Total other commercial | — | — | — | — | — | 5 | 35 | 40 | |||||||||||||||||||||||||||||||||||||||
Total commercial | 5,402 | 3,109 | 2,001 | 1,603 | 1,217 | 2,659 | 1,479 | 17,470 | |||||||||||||||||||||||||||||||||||||||
December 31, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
CONSUMER | |||||||||||||||||||||||||||||||||||||||||||||||
Direct Installment: | |||||||||||||||||||||||||||||||||||||||||||||||
Current | 706 | 337 | 200 | 143 | 171 | 442 | 1 | 2,000 | |||||||||||||||||||||||||||||||||||||||
Past due | — | 1 | 2 | 1 | 2 | 14 | — | 20 | |||||||||||||||||||||||||||||||||||||||
Total direct installment | 706 | 338 | 202 | 144 | 173 | 456 | 1 | 2,020 | |||||||||||||||||||||||||||||||||||||||
Residential Mortgages: | |||||||||||||||||||||||||||||||||||||||||||||||
Current | 1,079 | 707 | 283 | 378 | 330 | 603 | 1 | 3,381 | |||||||||||||||||||||||||||||||||||||||
Past due | 1 | 5 | 7 | 4 | 6 | 29 | — | 52 | |||||||||||||||||||||||||||||||||||||||
Total residential mortgages | 1,080 | 712 | 290 | 382 | 336 | 632 | 1 | 3,433 | |||||||||||||||||||||||||||||||||||||||
Indirect Installment: | |||||||||||||||||||||||||||||||||||||||||||||||
Current | 372 | 260 | 332 | 147 | 67 | 27 | — | 1,205 | |||||||||||||||||||||||||||||||||||||||
Past due | 1 | 3 | 4 | 2 | 2 | 1 | — | 13 | |||||||||||||||||||||||||||||||||||||||
Total indirect installment | 373 | 263 | 336 | 149 | 69 | 28 | — | 1,218 | |||||||||||||||||||||||||||||||||||||||
Consumer Lines of Credit: | |||||||||||||||||||||||||||||||||||||||||||||||
Current | 4 | 7 | 8 | 3 | 5 | 127 | 1,146 | 1,300 | |||||||||||||||||||||||||||||||||||||||
Past due | — | — | — | — | — | 15 | 3 | 18 | |||||||||||||||||||||||||||||||||||||||
Total consumer lines of credit | 4 | 7 | 8 | 3 | 5 | 142 | 1,149 | 1,318 | |||||||||||||||||||||||||||||||||||||||
Total consumer | 2,163 | 1,320 | 836 | 678 | 583 | 1,258 | 1,151 | 7,989 | |||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 7,565 | $ | 4,429 | $ | 2,837 | $ | 2,281 | $ | 1,800 | $ | 3,917 | $ | 2,630 | $ | 25,459 |
Commercial Loan and Lease Credit Quality Categories | |||||||||||||||||||||||||||||
(in millions) | Pass |
Special
Mention |
Substandard | Doubtful | Total | ||||||||||||||||||||||||
Originated Loans and Leases | |||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Commercial real estate | $ | 6,821 | $ | 171 | $ | 121 | $ | 1 | $ | 7,114 | |||||||||||||||||||
Commercial and industrial | 4,768 | 149 | 144 | 2 | 5,063 | ||||||||||||||||||||||||
Commercial leases | 423 | 3 | 6 | — | 432 | ||||||||||||||||||||||||
Other | 20 | — | 1 | — | 21 | ||||||||||||||||||||||||
Total originated commercial loans and leases | $ | 12,032 | $ | 323 | $ | 272 | $ | 3 | $ | 12,630 | |||||||||||||||||||
Loans Acquired in a Business Combination | |||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Commercial real estate | $ | 1,603 | $ | 116 | $ | 127 | $ | — | $ | 1,846 | |||||||||||||||||||
Commercial and industrial | 201 | 19 | 25 | — | 245 | ||||||||||||||||||||||||
Total commercial loans acquired in a business combination | $ | 1,804 | $ | 135 | $ | 152 | $ | — | $ | 2,091 |
Consumer Loan Credit Quality by Payment Status | |||||||||||||||||
(in millions) | Performing | Non-Performing | Total | ||||||||||||||
Originated Loans | |||||||||||||||||
December 31, 2019 | |||||||||||||||||
Direct installment | $ | 1,745 | $ | 13 | $ | 1,758 | |||||||||||
Residential mortgages | 2,978 | 17 | 2,995 | ||||||||||||||
Indirect installment | 1,919 | 3 | 1,922 | ||||||||||||||
Consumer lines of credit | 1,086 | 6 | 1,092 | ||||||||||||||
Total originated consumer loans | $ | 7,728 | $ | 39 | $ | 7,767 | |||||||||||
Loans Acquired in a Business Combination | |||||||||||||||||
December 31, 2019 | |||||||||||||||||
Direct installment | $ | 63 | $ | — | $ | 63 | |||||||||||
Residential mortgages | 379 | — | 379 | ||||||||||||||
Consumer lines of credit | 358 | 1 | 359 | ||||||||||||||
Total consumer loans acquired in a business combination | $ | 800 | $ | 1 | $ | 801 |
(in millions) |
30-89 Days
Past Due |
≥ 90 Days
Past Due and Still Accruing |
Non-
Accrual |
Total
Past Due |
Current |
Total
Loans and Leases |
Non-accrual with No ACL | ||||||||||||||||||||||||||||||||||
Loans and Leases | |||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 13 | $ | — | $ | 85 | $ | 98 | $ | 9,633 | $ | 9,731 | $ | 36 | |||||||||||||||||||||||||||
Commercial and industrial | 8 | — | 44 | 52 | 7,162 | 7,214 | 16 | ||||||||||||||||||||||||||||||||||
Commercial leases | 2 | — | 2 | 4 | 481 | 485 | — | ||||||||||||||||||||||||||||||||||
Other | — | — | 1 | 1 | 39 | 40 | — | ||||||||||||||||||||||||||||||||||
Total commercial loans and leases | 23 | — | 132 | 155 | 17,315 | 17,470 | 52 | ||||||||||||||||||||||||||||||||||
Direct installment | 7 | 2 | 11 | 20 | 2,000 | 2,020 | — | ||||||||||||||||||||||||||||||||||
Residential mortgages | 23 | 11 | 18 | 52 | 3,381 | 3,433 | — | ||||||||||||||||||||||||||||||||||
Indirect installment | 10 | 1 | 2 | 13 | 1,205 | 1,218 | — | ||||||||||||||||||||||||||||||||||
Consumer lines of credit | 9 | 2 | 7 | 18 | 1,300 | 1,318 | — | ||||||||||||||||||||||||||||||||||
Total consumer loans | 49 | 16 | 38 | 103 | 7,886 | 7,989 | — | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 72 | $ | 16 | $ | 170 | $ | 258 | $ | 25,201 | $ | 25,459 | $ | 52 |
(in millions) |
30-89 Days
Past Due |
> 90 Days
Past Due and Still Accruing |
Non-
Accrual |
Total
Past Due |
Current |
Total
Loans and Leases |
|||||||||||||||||||||||||||||||||||
Originated Loans and Leases | |||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 10 | $ | — | $ | 26 | $ | 36 | $ | 7,078 | $ | 7,114 | |||||||||||||||||||||||||||||
Commercial and industrial | 9 | — | 28 | 37 | 5,026 | 5,063 | |||||||||||||||||||||||||||||||||||
Commercial leases | 5 | — | 1 | 6 | 426 | 432 | |||||||||||||||||||||||||||||||||||
Other | — | — | 1 | 1 | 20 | 21 | |||||||||||||||||||||||||||||||||||
Total commercial loans and leases | 24 | — | 56 | 80 | 12,550 | 12,630 | |||||||||||||||||||||||||||||||||||
Direct installment | 7 | 1 | 7 | 15 | 1,743 | 1,758 | |||||||||||||||||||||||||||||||||||
Residential mortgages | 12 | 2 | 8 | 22 | 2,973 | 2,995 | |||||||||||||||||||||||||||||||||||
Indirect installment | 15 | 1 | 3 | 19 | 1,903 | 1,922 | |||||||||||||||||||||||||||||||||||
Consumer lines of credit | 5 | 1 | 3 | 9 | 1,083 | 1,092 | |||||||||||||||||||||||||||||||||||
Total consumer loans | 39 | 5 | 21 | 65 | 7,702 | 7,767 | |||||||||||||||||||||||||||||||||||
Total originated loans and leases | $ | 63 | $ | 5 | $ | 77 | $ | 145 | $ | 20,252 | $ | 20,397 |
(in millions) |
30-89 Days
Past Due |
≥ 90 Days
Past Due and Still Accruing |
Non-
Accrual |
Total
Past Due (1) (2) |
Current |
(Discount)/
Premium |
Total
Loans |
||||||||||||||||||||||||||||||||||
Loans Acquired in a Business Combination | |||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 12 | $ | 28 | $ | 3 | $ | 43 | $ | 1,942 | $ | (139) | $ | 1,846 | |||||||||||||||||||||||||||
Commercial and industrial | 2 | 3 | — | 5 | 259 | (19) | 245 | ||||||||||||||||||||||||||||||||||
Total commercial loans | 14 | 31 | 3 | 48 | 2,201 | (158) | 2,091 | ||||||||||||||||||||||||||||||||||
Direct installment | 3 | — | — | 3 | 60 | — | 63 | ||||||||||||||||||||||||||||||||||
Residential mortgages | 8 | 4 | — | 12 | 382 | (15) | 379 | ||||||||||||||||||||||||||||||||||
Consumer lines of credit | 7 | 2 | 1 | 10 | 357 | (8) | 359 | ||||||||||||||||||||||||||||||||||
Total consumer loans | 18 | 6 | 1 | 25 | 799 | (23) | 801 | ||||||||||||||||||||||||||||||||||
Total loans acquired in a business combination | $ | 32 | $ | 37 | $ | 4 | $ | 73 | $ | 3,000 | $ | (181) | $ | 2,892 |
December 31 | 2020 | 2019 | |||||||||
(dollars in millions) | |||||||||||
Non-accrual loans | $ | 170 | $ | 81 | |||||||
Troubled debt restructurings | — | 22 | |||||||||
Total non-performing loans
|
170 | 103 | |||||||||
Other real estate owned | 10 | 26 | |||||||||
Total non-performing assets
|
$ | 180 | $ | 129 | |||||||
Asset quality ratios: | |||||||||||
Non-performing loans / total loans and leases
|
0.67 | % | 0.44 | % | |||||||
Non-performing loans assets + 90 days past due + OREO / total loans and leases + OREO
|
0.77 | 0.73 |
December 31 | 2020 | 2019 | |||||||||
(in millions) | |||||||||||
Accruing | $ | 58 | $ | 41 | |||||||
Non-accrual | 33 | 15 | |||||||||
Total TDRs | $ | 91 | $ | 56 |
Year Ended December 31 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
(dollars in millions) |
Number
of Contracts |
Pre-Modification
Outstanding Recorded Investment |
Post-
Modification Outstanding Recorded Investment |
Number
of Contracts |
Pre-Modification
Outstanding Recorded Investment |
Post-
Modification Outstanding Recorded Investment |
|||||||||||||||||||||||||||||
Commercial real estate | 30 | $ | 18 | $ | 8 | 20 | $ | 5 | $ | 5 | |||||||||||||||||||||||||
Commercial and industrial | 19 | 2 | 1 | 23 | 5 | 3 | |||||||||||||||||||||||||||||
Other | 1 | — | — | — | — | — | |||||||||||||||||||||||||||||
Total commercial loans | 50 | 20 | 9 | 43 | 10 | 8 | |||||||||||||||||||||||||||||
Direct installment | 68 | 4 | 4 | 65 | 3 | 3 | |||||||||||||||||||||||||||||
Residential mortgages | 24 | 3 | 3 | 18 | 3 | 3 | |||||||||||||||||||||||||||||
Consumer lines of credit | 45 | 2 | 1 | 27 | 2 | 1 | |||||||||||||||||||||||||||||
Total consumer loans | 137 | 9 | 8 | 110 | 8 | 7 | |||||||||||||||||||||||||||||
Total | 187 | $ | 29 | $ | 17 | 153 | $ | 18 | $ | 15 |
Year Ended December 31 | 2020 | ||||||||||
(dollars in millions) |
Number
of Contracts |
Recorded
Investment |
|||||||||
Commercial real estate | 8 | $ | 3 | ||||||||
Commercial and industrial | 2 | — | |||||||||
Total commercial loans | 10 | 3 | |||||||||
Direct installment | 12 | — | |||||||||
Residential mortgages | 4 | — | |||||||||
Consumer lines of credit | 4 | — | |||||||||
Total consumer loans | 20 | — | |||||||||
Total | 30 | $ | 3 |
Year Ended December 31 | 2019 | ||||||||||
(dollars in millions) |
Number
of Contracts |
Recorded
Investment |
|||||||||
Commercial real estate | 5 | $ | 1 | ||||||||
Commercial and industrial | 1 | — | |||||||||
Total commercial loans | 6 | 1 | |||||||||
Direct installment | 5 | — | |||||||||
Residential mortgages | 2 | — | |||||||||
Consumer lines of credit | 1 | — | |||||||||
Total consumer loans | 8 | — | |||||||||
Total | 14 | $ | 1 |
(in millions) |
Balance at
Beginning of Year |
Charge-
Offs |
Recoveries |
Net
Charge- Offs |
Provision
for Credit Losses |
ASC 326 Adoption Impact | Initial ACL on PCD Loans |
Balance at
End of Year |
|||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 60 | $ | (31) | $ | 7 | $ | (24) | $ | 67 | $ | 38 | $ | 40 | $ | 181 | |||||||||||||||||||||||||||||||
Commercial and industrial | 53 | (32) | 7 | (25) | 41 | 8 | 4 | 81 | |||||||||||||||||||||||||||||||||||||||
Commercial leases | 11 | (1) | — | (1) | 7 | — | — | 17 | |||||||||||||||||||||||||||||||||||||||
Other | 9 | (4) | 1 | (3) | 4 | (9) | — | 1 | |||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases | 133 | (68) | 15 | (53) | 119 | 37 | 44 | 280 | |||||||||||||||||||||||||||||||||||||||
Direct installment | 13 | (1) | 1 | — | 2 | 10 | 1 | 26 | |||||||||||||||||||||||||||||||||||||||
Residential mortgages | 22 | (2) | 1 | (1) | 3 | 6 | 4 | 34 | |||||||||||||||||||||||||||||||||||||||
Indirect installment | 19 | (8) | 4 | (4) | (6) | 2 | — | 11 | |||||||||||||||||||||||||||||||||||||||
Consumer lines of credit | 9 | (2) | — | (2) | 4 | — | 1 | 12 | |||||||||||||||||||||||||||||||||||||||
Total consumer loans | 63 | (13) | 6 | (7) | 3 | 18 | 6 | 83 | |||||||||||||||||||||||||||||||||||||||
Total allowance for credit losses on loans and leases | $ | 196 | $ | (81) | $ | 21 | $ | (60) | $ | 122 | $ | 55 | $ | 50 | $ | 363 | |||||||||||||||||||||||||||||||
Allowance for unfunded loan commitments | 3 | — | — | — | 1 | 10 | — | 14 | |||||||||||||||||||||||||||||||||||||||
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments | $ | 199 | $ | (81) | $ | 21 | $ | (60) | $ | 123 | $ | 65 | $ | 50 | $ | 377 |
Year Ended December 31 | 2020 | ||||||||||||||||
(in millions) | |||||||||||||||||
Balance at beginning of period | $ | 3 | |||||||||||||||
Provision for unfunded loan commitments and letters of credit: | |||||||||||||||||
Commercial portfolio | 1 | ||||||||||||||||
Consumer portfolio | — | ||||||||||||||||
ASC 326 adoption impact: | |||||||||||||||||
Commercial portfolio | 8 | ||||||||||||||||
Consumer portfolio | 2 | ||||||||||||||||
Balance at end of period | $ | 14 |
(in millions) |
Balance at
Beginning of Period |
Charge-
Offs |
Recoveries |
Net
Charge- Offs |
Provision
for Credit Losses |
Balance at
End of Period |
|||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 55 | $ | (4) | $ | 4 | $ | — | $ | 5 | $ | 60 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 49 | (10) | 4 | (6) | 10 | 53 | |||||||||||||||||||||||||||||||||||||||||
Commercial leases | 8 | — | — | — | 3 | 11 | |||||||||||||||||||||||||||||||||||||||||
Other | 2 | (3) | — | (3) | 3 | 2 | |||||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases | 114 | (17) | 8 | (9) | 21 | 126 | |||||||||||||||||||||||||||||||||||||||||
Direct installment | 14 | (1) | — | (1) | — | 13 | |||||||||||||||||||||||||||||||||||||||||
Residential mortgages | 20 | (2) | — | (2) | 4 | 22 | |||||||||||||||||||||||||||||||||||||||||
Indirect installment | 15 | (11) | 4 | (7) | 11 | 19 | |||||||||||||||||||||||||||||||||||||||||
Consumer lines of credit | 10 | (2) | — | (2) | 1 | 9 | |||||||||||||||||||||||||||||||||||||||||
Total consumer loans | 59 | (16) | 4 | (12) | 16 | 63 | |||||||||||||||||||||||||||||||||||||||||
Total allowance on originated loans and leases | 173 | (33) | 12 | (21) | 37 | 189 | |||||||||||||||||||||||||||||||||||||||||
Loans acquired in a business combination | 7 | (9) | 2 | (7) | 7 | 7 | |||||||||||||||||||||||||||||||||||||||||
Total allowance for credit losses | $ | 180 | $ | (42) | $ | 14 | $ | (28) | $ | 44 | $ | 196 | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 50 | $ | (7) | $ | 3 | $ | (4) | $ | 9 | $ | 55 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 52 | (20) | 2 | (18) | 15 | 49 | |||||||||||||||||||||||||||||||||||||||||
Commercial leases | 5 | (3) | — | (3) | 6 | 8 | |||||||||||||||||||||||||||||||||||||||||
Other | 2 | (4) | — | (4) | 4 | 2 | |||||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases | 109 | (34) | 5 | (29) | 34 | 114 | |||||||||||||||||||||||||||||||||||||||||
Direct installment | 21 | (17) | 2 | (15) | 8 | 14 | |||||||||||||||||||||||||||||||||||||||||
Residential mortgages | 16 | — | — | — | 4 | 20 | |||||||||||||||||||||||||||||||||||||||||
Indirect installment | 12 | (9) | 4 | (5) | 8 | 15 | |||||||||||||||||||||||||||||||||||||||||
Consumer lines of credit | 10 | (3) | — | (3) | 3 | 10 | |||||||||||||||||||||||||||||||||||||||||
Total consumer loans | 59 | (29) | 6 | (23) | 23 | 59 | |||||||||||||||||||||||||||||||||||||||||
Total allowance on originated loans and leases | 168 | (63) | 11 | (52) | 57 | 173 | |||||||||||||||||||||||||||||||||||||||||
Loans acquired in a business combination | 7 | (7) | 3 | (4) | 4 | 7 | |||||||||||||||||||||||||||||||||||||||||
Total allowance for credit losses | $ | 175 | $ | (70) | $ | 14 | $ | (56) | $ | 61 | $ | 180 |
Allowance for Credit Losses | Loans and Leases Outstanding | ||||||||||||||||||||||||||||
(in millions) |
Individually
Evaluated for Impairment |
Collectively
Evaluated for Impairment |
Loans and
Leases |
Individually
Evaluated for Impairment |
Collectively
Evaluated for Impairment |
||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Commercial real estate | $ | 2 | $ | 58 | $ | 7,114 | $ | 13 | $ | 7,101 | |||||||||||||||||||
Commercial and industrial | 2 | 51 | 5,063 | 17 | 5,046 | ||||||||||||||||||||||||
Commercial leases | — | 11 | 432 | — | 432 | ||||||||||||||||||||||||
Other | — | 2 | 21 | — | 21 | ||||||||||||||||||||||||
Total commercial loans and leases | 4 | 122 | 12,630 | 30 | 12,600 | ||||||||||||||||||||||||
Direct installment | — | 13 | 1,758 | — | 1,758 | ||||||||||||||||||||||||
Residential mortgages | — | 22 | 2,995 | — | 2,995 | ||||||||||||||||||||||||
Indirect installment | — | 19 | 1,922 | — | 1,922 | ||||||||||||||||||||||||
Consumer lines of credit | — | 9 | 1,092 | — | 1,092 | ||||||||||||||||||||||||
Total consumer loans | — | 63 | 7,767 | — | 7,767 | ||||||||||||||||||||||||
Total | $ | 4 | $ | 185 | $ | 20,397 | $ | 30 | $ | 20,367 |
December 31 | 2020 | 2019 | |||||||||
(in millions) | |||||||||||
Mortgage loans sold with servicing retained | $ | 4,653 | $ | 4,686 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
Mortgage loans sold with servicing retained | $ | 1,636 | $ | 1,381 | $ | 1,060 | |||||||||||
Pretax gains resulting from above loan sales (1)
|
70 | 32 | 19 | ||||||||||||||
Mortgage servicing fees (1)
|
12 | 11 | 9 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
Balance at beginning of period | $ | 42.6 | $ | 36.8 | $ | 29.1 | |||||||||||
Additions | 16.0 | 14.3 | 12.5 | ||||||||||||||
Payoffs and curtailments | (14.8) | (5.0) | (1.8) | ||||||||||||||
(Impairment) charge / recovery | (5.8) | (1.0) | (0.5) | ||||||||||||||
Amortization | (2.4) | (2.5) | (2.5) | ||||||||||||||
Balance at end of period | $ | 35.6 | $ | 42.6 | $ | 36.8 | |||||||||||
Fair value, beginning of period | $ | 45.2 | $ | 41.1 | $ | 32.4 | |||||||||||
Fair value, end of period | 35.6 | 45.2 | 41.1 |
December 31 | 2020 | 2019 | |||||||||
(dollars in millions) | |||||||||||
Weighted average life (months) | 66.6 | 78.9 | |||||||||
Constant prepayment rate (annualized) | 13.4 | % | 10.6 | % | |||||||
Discount rate | 9.5 | % | 9.7 | % | |||||||
Effect on fair value due to change in interest rates: | |||||||||||
+0.25% | $ | 2 | $ | 3 | |||||||
+0.50% | 4 | 5 | |||||||||
-0.25% | (2) | (3) | |||||||||
-0.50% | (3) | (5) |
December 31 | 2020 | 2019 | |||||||||
(in millions) | |||||||||||
SBA loans sold to investors with servicing retained | $ | 217 | $ | 225 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
SBA loans sold with servicing retained | $ | 33 | $ | 23 | $ | 41 | |||||||||||
Pretax gains resulting from above loan sales (1)
|
3 | 2 | 4 | ||||||||||||||
SBA servicing fees (1)
|
2 | 2 | 3 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
Balance at beginning of period | $ | 3 | $ | 4 | $ | 5 | |||||||||||
Additions | 1 | — | 1 | ||||||||||||||
Payoffs, curtailments and amortization | (1) | (1) | (1) | ||||||||||||||
Impairment charge | — | — | (1) | ||||||||||||||
Balance at end of period | $ | 3 | $ | 3 | $ | 4 | |||||||||||
Fair value, beginning of period | $ | 3 | $ | 4 | $ | 5 | |||||||||||
Fair value, end of period | 3 | 3 | 4 |
December 31 | 2020 | 2019 | |||||||||
(dollars in millions) | |||||||||||
Weighted average life (months) | 38 | 42 | |||||||||
Constant prepayment rate | 17.8 | % | 16.8 | % | |||||||
Discount rate | 13.2 | 16.2 | |||||||||
Decline in fair value due to change in interest rates: | |||||||||||
1% adverse change | $ | (0.1) | $ | (0.1) | |||||||
2% adverse change | (0.1) | (0.1) | |||||||||
Decline in fair value due to change in constant prepayment rates: | |||||||||||
10% adverse change | (0.1) | (0.1) | |||||||||
20% adverse change | (0.1) | (0.3) |
December 31 | 2020 | 2019 | |||||||||
(in millions) | |||||||||||
Land | $ | 57 | $ | 62 | |||||||
Premises | 231 | 233 | |||||||||
Equipment | 311 | 276 | |||||||||
599 | 571 | ||||||||||
Accumulated depreciation | (267) | (238) | |||||||||
Total premises and equipment, net | $ | 332 | $ | 333 |
December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
Depreciation expense for premises and equipment | $ | 43 | $ | 42 | $ | 39 |
(in millions) |
Community
Banking |
Wealth
Manage- ment |
Insurance | Total | |||||||||||||||||||||||||
Balance at January 1, 2019 | $ | 2,231 | $ | 8 | $ | 16 | $ | 2,255 | |||||||||||||||||||||
Goodwill (deductions) additions | — | — | 7 | 7 | |||||||||||||||||||||||||
Balance at December 31, 2019 | 2,231 | 8 | 23 | 2,262 | |||||||||||||||||||||||||
Goodwill (deductions) additions | — | — | — | — | |||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 2,231 | $ | 8 | $ | 23 | $ | 2,262 |
(in millions) |
Core
Deposit Intangibles |
Customer
Renewal Lists |
Total | ||||||||||||||
December 31, 2020 | |||||||||||||||||
Gross carrying amount | $ | 197 | $ | 18 | $ | 215 | |||||||||||
Accumulated amortization | (149) | (12) | (161) | ||||||||||||||
Net carrying amount | $ | 48 | $ | 6 | $ | 54 | |||||||||||
December 31, 2019 | |||||||||||||||||
Gross carrying amount | $ | 196 | $ | 18 | $ | 214 | |||||||||||
Accumulated amortization | (136) | (11) | (147) | ||||||||||||||
Net carrying amount | $ | 60 | $ | 7 | $ | 67 |
December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
Amortization expense | $ | 13 | $ | 14 | $ | 16 |
(in millions) | |||||
2021 | $ | 12 | |||
2022 | 10 | ||||
2023 | 10 | ||||
2024 | 8 | ||||
2025 | 7 | ||||
Total | $ | 47 |
Twelve Months Ended
December 31, |
|||||||||||||||||
(dollars in millions) | 2020 | 2019 | |||||||||||||||
Operating lease cost | $ | 27 | $ | 27 | |||||||||||||
Short-term lease cost | 1 | 1 | |||||||||||||||
Variable lease cost | 3 | 4 | |||||||||||||||
Total lease cost | $ | 31 | $ | 32 |
Twelve Months Ended
December 31, |
|||||||||||
(dollars in millions) | 2020 | 2019 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | 26 | $ | 26 | |||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||
Operating leases | 20 | 25 | |||||||||
Weighted average remaining lease term (years): | |||||||||||
Operating leases | 9.45 | 9.61 | |||||||||
Weighted average discount rate: | |||||||||||
Operating leases | 2.6 | % | 3.0 | % |
(in millions) |
December 31,
2020 |
||||
2021 | $ | 25 | |||
2022 | 21 | ||||
2023 | 17 | ||||
2024 | 15 | ||||
2025 | 12 | ||||
Later years | 64 | ||||
Total lease payments | 154 | ||||
Less: imputed interest | (20) | ||||
Present value of lease liabilities | $ | 134 |
(in millions) | Total Assets | Total Liabilities | Maximum Exposure to Loss | ||||||||||||||
December 31, 2020 | |||||||||||||||||
Trust preferred securities (1)
|
$ | 1 | $ | 66 | $ | — | |||||||||||
Affordable housing tax credit partnerships | 119 | 45 | 119 | ||||||||||||||
Other investments | 26 | 8 | 26 | ||||||||||||||
Total | $ | 146 | $ | 119 | $ | 145 | |||||||||||
December 31, 2019 | |||||||||||||||||
Trust preferred securities (1)
|
$ | 1 | $ | 66 | $ | — | |||||||||||
Affordable housing tax credit partnerships | 120 | 60 | 120 | ||||||||||||||
Other investments | 33 | 10 | 33 | ||||||||||||||
Total | $ | 154 | $ | 136 | $ | 153 | |||||||||||
(1) Represents our investment in unconsolidated subsidiaries. |
December 31 | 2020 | 2019 | |||||||||
(in millions) | |||||||||||
Proportional amortization method investments included in other assets | $ | 71 | $ | 55 | |||||||
Equity method investments included in other assets | 3 | 5 | |||||||||
Total LIHTC investments included in other assets | $ | 74 | $ | 60 | |||||||
Unfunded LIHTC commitments | $ | 45 | $ | 60 |
Year Ended December 31 | |||||||||||||||||
(in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Non-interest income: | |||||||||||||||||
Amortization of tax credit investments under equity method, net of tax benefit | $ | 1 | $ | 1 | $ | 2 | |||||||||||
Provision for income taxes: | |||||||||||||||||
Amortization of LIHTC investments under proportional method | $ | 11 | $ | 8 | $ | 5 | |||||||||||
Low-income housing tax credits | (12) | (9) | (6) | ||||||||||||||
Other tax benefits related to tax credit investments | (2) | (2) | (1) | ||||||||||||||
Total provision for income taxes | $ | (3) | $ | (3) | $ | (2) |
December 31 | 2020 | 2019 | |||||||||
(in millions) | |||||||||||
Non-interest-bearing demand | $ | 9,042 | $ | 6,384 | |||||||
Interest-bearing demand | 13,157 | 11,049 | |||||||||
Savings | 3,261 | 2,625 | |||||||||
Certificates and other time deposits: | |||||||||||
Less than $100,000 | 1,895 | 2,262 | |||||||||
$100,000 through $250,000 | 1,173 | 1,494 | |||||||||
Greater than $250,000 | 594 | 972 | |||||||||
Total certificates and other time deposits | 3,662 | 4,728 | |||||||||
Total deposits | $ | 29,122 | $ | 24,786 |
(in millions) | |||||
2021 | $ | 2,464 | |||
2022 | 683 | ||||
2023 | 236 | ||||
2024 | 124 | ||||
2025 | 99 | ||||
Later years | 56 | ||||
Total | $ | 3,662 |
December 31 | 2020 | 2019 | |||||||||
(in millions) | |||||||||||
Securities sold under repurchase agreements | $ | 403 | $ | 278 | |||||||
Federal Home Loan Bank advances | 1,280 | 2,255 | |||||||||
Federal funds purchased | — | 575 | |||||||||
Subordinated notes | 121 | 108 | |||||||||
Total short-term borrowings | $ | 1,804 | $ | 3,216 |
December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Year-to-date average | 1.53 | % | 2.24 | % | 1.89 | % | |||||||||||
Period-end | 1.57 | 1.76 | 2.49 |
December 31 | 2020 | 2019 | |||||||||
(in millions) | |||||||||||
Federal Home Loan Bank advances | $ | 400 | $ | 935 | |||||||
Senior notes | 299 | — | |||||||||
Subordinated notes | 81 | 90 | |||||||||
Junior subordinated debt | 66 | 66 | |||||||||
Other subordinated debt | 249 | 249 | |||||||||
Total long-term borrowings | $ | 1,095 | $ | 1,340 |
(in millions) | |||||
2021 | $ | 427 | |||
2022 | 16 | ||||
2023 | 334 | ||||
2024 | 1 | ||||
2025 | 104 | ||||
Later years | 213 | ||||
Total | $ | 1,095 |
December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Subordinated notes weighted average interest rate | 3.23 | % | 3.33 | % | 3.08 | % |
(dollars in millions) |
Trust
Preferred Securities |
Common
Securities |
Junior
Subordinated Debt |
Stated
Maturity Date |
Interest
Rate |
Rate Reset Factor | |||||||||||||||||||||||||||||
F.N.B. Statutory Trust II | $ | 22 | $ | 1 | $ | 22 | 6/15/2036 | 1.87 | % |
LIBOR + 165 basis points (bps)
|
|||||||||||||||||||||||||
Yadkin Valley Statutory Trust I | 25 | 1 | 22 | 12/15/2037 | 1.54 | % |
LIBOR + 132 bps
|
||||||||||||||||||||||||||||
FNB Financial Services Capital Trust I | 25 | 1 | 22 | 9/30/2035 | 1.70 | % |
LIBOR + 146 bps
|
||||||||||||||||||||||||||||
Total | $ | 72 | $ | 3 | $ | 66 |
(dollars in millions) | Aggregate Principal Amount Issued |
Net Proceeds (2)
|
Carrying Value | Stated Maturity Date |
Interest
Rate |
||||||||||||||||||||||||
2.20% Senior Notes due February 24, 2023
|
$ | 300 | $ | 298 | $ | 299 | 2/24/2023 | 2.20 | % | ||||||||||||||||||||
4.95% Fixed-To-Floating Rate Subordinated Notes due 2029
|
120 | 118 | 119 | 2/14/2029 | 4.95 | % | |||||||||||||||||||||||
4.875% Subordinated Notes due 2025
|
100 | 98 | 99 | 10/2/2025 | 4.875 | % | |||||||||||||||||||||||
7.625% Subordinated Notes due August 12, 2023 (1)
|
38 | 46 | 31 | 8/12/2023 | 7.625 | % | |||||||||||||||||||||||
Total | $ | 558 | $ | 560 | $ | 548 |
December 31 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Notional
Amount |
Fair Value |
Notional
Amount |
Fair Value | ||||||||||||||||||||||||||||||||
(in millions) | Asset | Liability | Asset | Liability | |||||||||||||||||||||||||||||||
Gross Derivatives | |||||||||||||||||||||||||||||||||||
Subject to master netting arrangements: | |||||||||||||||||||||||||||||||||||
Interest rate contracts – designated | $ | 1,430 | $ | 3 | $ | — | $ | 1,655 | $ | 1 | $ | — | |||||||||||||||||||||||
Interest rate swaps – not designated | 4,791 | — | 37 | 3,640 | — | 23 | |||||||||||||||||||||||||||||
Total subject to master netting arrangements | 6,221 | 3 | 37 | 5,295 | 1 | 23 | |||||||||||||||||||||||||||||
Not subject to master netting arrangements: | |||||||||||||||||||||||||||||||||||
Interest rate swaps – not designated | 4,791 | 349 | — | 3,640 | 149 | 1 | |||||||||||||||||||||||||||||
Interest rate lock commitments – not designated | 531 | 24 | — | 163 | 3 | — | |||||||||||||||||||||||||||||
Forward delivery commitments – not designated | 500 | — | 2 | 195 | 1 | 1 | |||||||||||||||||||||||||||||
Credit risk contracts – not designated | 437 | — | 1 | 265 | — | — | |||||||||||||||||||||||||||||
Total not subject to master netting arrangements | 6,259 | 373 | 3 | 4,263 | 153 | 2 | |||||||||||||||||||||||||||||
Total | $ | 12,480 | $ | 376 | $ | 40 | $ | 9,558 | $ | 154 | $ | 25 |
Amount of Gain (Loss) Recognized in OCI on Derivatives | Location of Gain (Loss) Reclassified from AOCI into Income | Amount of Gain (Loss) Reclassified from AOCI into Income | |||||||||||||||||||||||||||||||||||||||
Year Ended
December 31, |
Year Ended
December 31, |
||||||||||||||||||||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||
Derivatives in cash flow hedging relationships: | |||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | (51) | $ | (22) | $ | (3) | Interest income (expense) | $ | (14) | $ | 2 | $ | 2 | ||||||||||||||||||||||||||||
Other income | (9) | — | — |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
(in millions) | Interest Income - Loans and Leases | Interest Expense - Short-Term Borrowings | Interest Income - Loans and Leases | Interest Expense - Short-Term Borrowings | Interest Income - Loans and Leases | Interest Expense - Short-Term Borrowings | |||||||||||||||||||||||||||||
Total amounts of income and expense line items presented in the Consolidated Statements of Income (the effects of cash flow hedges are included in these line items) | $ | 990 | $ | 38 | $ | 1,085 | $ | 80 | $ | 1,022 | $ | 75 | |||||||||||||||||||||||
The effects of cash flow hedging: | |||||||||||||||||||||||||||||||||||
Gain (loss) on cash flow hedging
relationships: |
|||||||||||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||||||||||
Amount of gain (loss) reclassified
from AOCI into net income (1)
|
(7) | (16) | (1) | 3 | (1) | 3 | |||||||||||||||||||||||||||||
Amount of gain (loss) reclassified
from AOCI into income as a result that a forecasted transaction is no longer probable of occurring |
— | — | — | — | — | — |
Year Ended December 31, | |||||||||||||||||||||||
(in millions) | Consolidated Statements of Income Location | 2020 | 2019 | 2018 | |||||||||||||||||||
Interest rate swaps | Non-interest income - other | $ | — | $ | — | $ | 1 | ||||||||||||||||
Interest rate lock commitments | Mortgage banking operations | — | — | — | |||||||||||||||||||
Forward delivery contracts | Mortgage banking operations | (2) | (1) | 1 | |||||||||||||||||||
Credit risk contracts | Non-interest income - other | — | — | — |
Amount Not Offset in the
Consolidated Balance Sheets |
|||||||||||||||||||||||
(in millions) |
Net Amount
Presented in the Consolidated Balance Sheets |
Financial
Instruments |
Cash
Collateral |
Net
Amount |
|||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Designated | $ | 3 | $ | — | $ | 3 | $ | — | |||||||||||||||
Total | $ | 3 | $ | — | $ | 3 | $ | — |
Derivative Liabilities | |||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Not designated | $ | 37 | $ | — | $ | 37 | $ | — | |||||||||||||||
Total | $ | 37 | $ | — | $ | 37 | $ | — |
December 31, 2019 | |||||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Designated | $ | 1 | $ | 1 | $ | — | $ | — | |||||||||||||||
Total | $ | 1 | $ | 1 | $ | — | $ | — |
Derivative Liabilities | |||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Not designated | $ | 23 | $ | 23 | $ | — | $ | — | |||||||||||||||
Total | $ | 23 | $ | 23 | $ | — | $ | — |
December 31 | 2020 | 2019 | |||||||||
(in millions) | |||||||||||
Commitments to extend credit | $ | 9,285 | $ | 8,089 | |||||||
Standby letters of credit | 158 | 150 |
2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
Units |
Weighted
Average Grant Price per Share |
Units |
Weighted
Average Grant Price per Share |
Units |
Weighted
Average Grant Price per Share |
||||||||||||||||||||||||||||||
Unvested units outstanding at beginning of year | 2,858,357 | $ | 12.56 | 2,556,174 | $ | 13.51 | 1,975,862 | $ | 13.64 | ||||||||||||||||||||||||||
Granted | 2,004,895 | 6.95 | 1,182,197 | 10.94 | 962,799 | 13.21 | |||||||||||||||||||||||||||||
Net adjustment due to performance | 47,290 | 13.00 | — | — | — | — | |||||||||||||||||||||||||||||
Vested | (613,581) | 14.41 | (655,208) | 13.15 | (258,031) | 13.19 | |||||||||||||||||||||||||||||
Forfeited/expired | (203,058) | 12.54 | (332,814) | 12.72 | (214,743) | 13.39 | |||||||||||||||||||||||||||||
Dividend reinvestment | 228,212 | 8.14 | 108,008 | 11.84 | 90,287 | 12.61 | |||||||||||||||||||||||||||||
Unvested units outstanding at end of year | 4,322,115 | 9.46 | 2,858,357 | 12.56 | 2,556,174 | 13.51 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
Stock-based compensation expense | $ | 16 | $ | 12 | $ | 10 | |||||||||||
Tax benefit related to stock-based compensation expense | 3 | 2 | 2 | ||||||||||||||
Fair value of units vested | 5 | 7 | 3 |
(dollars in millions) |
Service-
Based Units |
Performance-
Based Units |
Total | ||||||||||||||
Unvested restricted stock units | 2,983,059 | 1,339,056 | 4,322,115 | ||||||||||||||
Unrecognized compensation expense | $ | 9 | $ | 2 | $ | 11 | |||||||||||
Intrinsic value | $ | 28 | $ | 13 | $ | 41 | |||||||||||
Weighted average remaining life (in years) | 1.72 | 1.16 | 1.54 |
2020 |
Weighted
Average Exercise Price per Share |
2019 |
Weighted
Average Exercise Price per Share |
2018 |
Weighted
Average Exercise Price per Share |
||||||||||||||||||||||||||||||
Options outstanding at beginning of year | 246,084 | $ | 8.14 | 458,354 | $ | 7.99 | 722,650 | $ | 7.96 | ||||||||||||||||||||||||||
Exercised | (33,945) | 5.74 | (183,566) | 7.86 | (253,899) | 7.77 | |||||||||||||||||||||||||||||
Forfeited/expired | (16,053) | 7.38 | (28,704) | 7.65 | (10,397) | 11.98 | |||||||||||||||||||||||||||||
Options outstanding and exercisable at end of year | 196,086 | 8.61 | 246,084 | 8.14 | 458,354 | 7.99 |
Range of Exercise Prices |
Options
Outstanding and Exercisable |
Weighted Average
Remaining Contractual Years |
Weighted Average
Exercise Price |
|||||||||||||||||
$3.57 - $5.36
|
26,216 | 0.72 | $ | 4.93 | ||||||||||||||||
$5.37 - $8.05
|
39,667 | 2.12 | 6.91 | |||||||||||||||||
$8.06 - $11.37
|
130,203 | 3.80 | 9.87 | |||||||||||||||||
196,086 |
December 31 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Qualified | Non-Qualified | Total | Qualified | Non-Qualified | Total | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 167 | $ | 20 | $ | 187 | $ | 156 | $ | 19 | $ | 175 | |||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 156 | $ | 19 | $ | 175 | $ | 145 | $ | 18 | $ | 163 | |||||||||||||||||||||||
Interest cost | 5 | 1 | 6 | 6 | 1 | 7 | |||||||||||||||||||||||||||||
Actuarial loss (gain) | 15 | 2 | 17 | 15 | 2 | 17 | |||||||||||||||||||||||||||||
Benefits paid | (9) | (2) | (11) | (10) | (2) | (12) | |||||||||||||||||||||||||||||
Projected benefit obligation at end of year | $ | 167 | $ | 20 | $ | 187 | $ | 156 | $ | 19 | $ | 175 | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 173 | $ | — | $ | 173 | $ | 150 | $ | — | $ | 150 | |||||||||||||||||||||||
Actual return on plan assets | 20 | — | 20 | 28 | — | 28 | |||||||||||||||||||||||||||||
Corporation contribution | 5 | 2 | 7 | 5 | 2 | 7 | |||||||||||||||||||||||||||||
Benefits paid | (9) | (2) | (11) | (10) | (2) | (12) | |||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 189 | $ | — | $ | 189 | $ | 173 | $ | — | $ | 173 | |||||||||||||||||||||||
Funded status of plans | $ | 22 | $ | (20) | $ | 2 | $ | 17 | $ | (19) | $ | (2) |
Assumptions at December 31 | 2020 | 2019 | |||||||||
Weighted average discount rate | 2.31 | % | 3.17 | % | |||||||
Rates of average increase in compensation levels | 3.50 | 3.50 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
Interest cost | $ | 6 | $ | 7 | $ | 6 | |||||||||||
Expected return on plan assets | (13) | (11) | (11) | ||||||||||||||
Actuarial loss amortization | 3 | 2 | 2 | ||||||||||||||
Total pension income | (4) | (2) | (3) | ||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||||
Current year actuarial loss | 10 | 1 | 6 | ||||||||||||||
Amortization of actuarial loss | (3) | (2) | (2) | ||||||||||||||
Total amount recognized in other comprehensive income | 7 | (1) | 4 | ||||||||||||||
Total amount recognized in net periodic benefit cost and other comprehensive income | $ | 3 | $ | (3) | $ | 1 |
Assumptions for the Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Weighted average discount rate | 3.17 | % | 4.16 | % | 4.19 | % | |||||||||||
Rates of increase in compensation levels | 3.50 | 3.50 | 3.50 | ||||||||||||||
Expected long-term rate of return on assets | 7.25 | 7.25 | 7.25 |
(in millions) | |||||||||||
Expected employer contributions: | 2021 | $ | 1 | ||||||||
Expected benefit payments: | 2021 | 10 | |||||||||
2022 | 10 | ||||||||||
2023 | 11 | ||||||||||
2024 | 11 | ||||||||||
2025 | 11 | ||||||||||
2026 – 2030 | 52 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
401(k) contribution expense | $ | 17 | $ | 15 | $ | 15 |
Target
Allocation |
Percentage of Plan Assets | ||||||||||||||||
December 31 | 2021 | 2020 | 2019 | ||||||||||||||
Asset Category | |||||||||||||||||
Equity securities |
45 - 65
|
63 | % | 60 | % | ||||||||||||
Debt securities |
30 - 50
|
36 | 37 | ||||||||||||||
Cash equivalents |
0 - 10
|
1 | 3 |
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Asset Class | |||||||||||||||||||||||
Cash | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||||||
Equity securities: | |||||||||||||||||||||||
F.N.B. Corporation | 4 | — | — | 4 | |||||||||||||||||||
Other large-cap U.S. financial services companies
|
3 | — | — | 3 | |||||||||||||||||||
Other large-cap U.S. companies
|
60 | — | — | 60 | |||||||||||||||||||
Other equity | 1 | — | — | 1 | |||||||||||||||||||
Mutual fund equity investments: | |||||||||||||||||||||||
U.S. equity index funds: | |||||||||||||||||||||||
U.S. large-cap equity index funds
|
— | — | — | — | |||||||||||||||||||
U.S. small-cap equity index funds
|
5 | — | — | 5 | |||||||||||||||||||
U.S. mid-cap equity index funds
|
6 | — | — | 6 | |||||||||||||||||||
Non-U.S. equities growth fund
|
16 | — | — | 16 | |||||||||||||||||||
U.S. equity funds: | |||||||||||||||||||||||
U.S. mid-cap
|
13 | — | — | 13 | |||||||||||||||||||
U.S. small-cap
|
5 | — | — | 5 | |||||||||||||||||||
Other | 5 | — | — | 5 | |||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
U.S. government agencies | — | 45 | — | 45 | |||||||||||||||||||
Corporate bonds | — | — | — | — | |||||||||||||||||||
Fixed income mutual funds: | |||||||||||||||||||||||
U.S. investment-grade fixed income securities | 24 | — | — | 24 | |||||||||||||||||||
Total | $ | 144 | $ | 45 | $ | — | $ | 189 |
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Asset Class | |||||||||||||||||||||||
Cash | $ | 5 | $ | — | $ | — | $ | 5 | |||||||||||||||
Equity securities: | |||||||||||||||||||||||
F.N.B. Corporation | 6 | — | — | 6 | |||||||||||||||||||
Other large-cap U.S. financial services companies
|
4 | — | — | 4 | |||||||||||||||||||
Other large-cap U.S. companies
|
54 | — | — | 54 | |||||||||||||||||||
Other equity | 1 | — | — | 1 | |||||||||||||||||||
Mutual fund equity investments: | |||||||||||||||||||||||
U.S. equity index funds: | |||||||||||||||||||||||
U.S. large-cap equity index funds
|
1 | — | — | 1 | |||||||||||||||||||
U.S. small-cap equity index funds
|
3 | — | — | 3 | |||||||||||||||||||
U.S. mid-cap equity index funds
|
5 | — | — | 5 | |||||||||||||||||||
Non-U.S. equities growth fund
|
9 | — | — | 9 | |||||||||||||||||||
U.S. equity funds: | |||||||||||||||||||||||
U.S. mid-cap
|
12 | — | — | 12 | |||||||||||||||||||
U.S. small-cap
|
4 | — | — | 4 | |||||||||||||||||||
Other | 5 | — | — | 5 | |||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
U.S. government agencies | — | 51 | — | 51 | |||||||||||||||||||
Corporate bonds | — | 1 | — | 1 | |||||||||||||||||||
Fixed income mutual funds: | |||||||||||||||||||||||
U.S. investment-grade fixed income securities | 12 | — | — | 12 | |||||||||||||||||||
Total | $ | 121 | $ | 52 | $ | — | $ | 173 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
Current income taxes: | |||||||||||||||||
Federal taxes | $ | 71 | $ | 47 | $ | 41 | |||||||||||
State taxes | 5 | 4 | 6 | ||||||||||||||
Total current income taxes | 76 | 51 | 47 | ||||||||||||||
Deferred income taxes: | |||||||||||||||||
Federal taxes | (20) | 30 | 32 | ||||||||||||||
State taxes | 1 | 3 | — | ||||||||||||||
Total deferred income taxes | (19) | 33 | 32 | ||||||||||||||
Total income taxes | $ | 57 | $ | 84 | $ | 79 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Statutory federal tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
State taxes, net of federal benefit | 1.6 | 1.1 | 1.1 | ||||||||||||||
Tax-exempt interest | (2.8) | (2.2) | (2.1) | ||||||||||||||
Cash surrender value on BOLI | (0.8) | (0.5) | (0.5) | ||||||||||||||
Tax credits | (6.3) | (4.2) | (2.8) | ||||||||||||||
Affordable housing cost amortization, net of tax benefits | 2.5 | 1.4 | 0.7 | ||||||||||||||
Tax Cuts and Jobs Act revaluation of net deferred tax assets | — | — | (0.4) | ||||||||||||||
Other items | 1.5 | 1.1 | 0.6 | ||||||||||||||
Effective tax rate | 16.7 | % | 17.7 | % | 17.6 | % |
December 31 | 2020 | 2019 | |||||||||
(in millions) | |||||||||||
Deferred tax assets: | |||||||||||
Allowance for credit losses | $ | 80 | $ | 43 | |||||||
Discounts on loans acquired in a business combination | 16 | 41 | |||||||||
Net operating loss/tax credit carryforwards | 38 | 38 | |||||||||
Deferred compensation | 12 | 11 | |||||||||
Securities impairments | 1 | 1 | |||||||||
Pension and other defined benefit plans | 2 | 3 | |||||||||
Lease liability | 30 | 29 | |||||||||
Net unrealized securities losses | — | 2 | |||||||||
Other | 14 | 8 | |||||||||
Total | 193 | 176 | |||||||||
Valuation allowance | (33) | (28) | |||||||||
Total deferred tax assets | 160 | 148 | |||||||||
Deferred tax liabilities: | |||||||||||
Loan costs | (6) | (15) | |||||||||
Depreciation | (12) | (19) | |||||||||
Prepaid expenses | (1) | (1) | |||||||||
Amortizable intangibles | (13) | (15) | |||||||||
Lease financing | (32) | (35) | |||||||||
Mortgage servicing rights | (8) | (9) | |||||||||
Lease ROU asset | (28) | (27) | |||||||||
Net unrealized securities gains | (7) | — | |||||||||
Other | (2) | (2) | |||||||||
Total deferred tax liabilities | (109) | (123) | |||||||||
Net deferred tax assets | $ | 51 | $ | 25 |
(in millions) |
Unrealized
Net Gains (Losses) on Debt Securities Available for Sale |
Unrealized Net
Gains (Losses) on Derivative Instruments |
Unrecognized
Pension and Postretirement Obligations |
Total | |||||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||
Balance at beginning of period | $ | 11 | $ | (18) | $ | (58) | $ | (65) | |||||||||||||||
Other comprehensive (loss) income before reclassifications | 54 | (40) | (6) | 8 | |||||||||||||||||||
Amounts reclassified from AOCI | — | 18 | — | 18 | |||||||||||||||||||
Net current period other comprehensive (loss) income | 54 | (22) | (6) | 26 | |||||||||||||||||||
Balance at end of period | $ | 65 | $ | (40) | $ | (64) | $ | (39) |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(dollars in millions, except per share data) | |||||||||||||||||
Net income | $ | 286 | $ | 387 | $ | 373 | |||||||||||
Less: Preferred stock dividends | 8 | 8 | 8 | ||||||||||||||
Net income available to common stockholders | $ | 278 | $ | 379 | $ | 365 | |||||||||||
Basic weighted average common shares outstanding | 323,368,639 | 324,938,720 | 324,207,198 | ||||||||||||||
Net effect of dilutive stock options, warrants and restricted stock | 2,119,325 | 1,122,418 | 1,416,405 | ||||||||||||||
Diluted weighted average common shares outstanding | 325,487,964 | 326,061,138 | 325,623,603 | ||||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.86 | $ | 1.17 | $ | 1.13 | |||||||||||
Diluted | $ | 0.85 | $ | 1.16 | $ | 1.12 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Average shares excluded from the diluted earnings per common share calculation | 22,375 | — | 81 |
Actual |
Well-Capitalized
Requirements (1)
|
Minimum Capital
Requirements plus Capital Conservation Buffer |
|||||||||||||||||||||||||||||||||
(dollars in millions) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||
As of December 31, 2020 | |||||||||||||||||||||||||||||||||||
F.N.B. Corporation: | |||||||||||||||||||||||||||||||||||
Total capital | $ | 3,324 | 12.33 | % | $ | 2,695 | 10.00 | % | $ | 2,830 | 10.50 | % | |||||||||||||||||||||||
Tier 1 capital | 2,759 | 10.24 | 1,617 | 6.00 | 2,291 | 8.50 | |||||||||||||||||||||||||||||
Common equity tier 1 | 2,652 | 9.84 | n/a | n/a | 1,886 | 7.00 | |||||||||||||||||||||||||||||
Leverage | 2,759 | 7.83 | n/a | n/a | 1,410 | 4.00 | |||||||||||||||||||||||||||||
Risk-weighted assets | 26,948 | ||||||||||||||||||||||||||||||||||
FNBPA: | |||||||||||||||||||||||||||||||||||
Total capital | 3,400 | 12.64 | 2,690 | 10.00 | 2,825 | 10.50 | |||||||||||||||||||||||||||||
Tier 1 capital | 2,882 | 10.71 | 2,152 | 8.00 | 2,287 | 8.50 | |||||||||||||||||||||||||||||
Common equity tier 1 | 2,802 | 10.42 | 1,749 | 6.50 | 1,883 | 7.00 | |||||||||||||||||||||||||||||
Leverage | 2,882 | 8.19 | 1,760 | 5.00 | 1,408 | 4.00 | |||||||||||||||||||||||||||||
Risk-weighted assets | 26,902 | ||||||||||||||||||||||||||||||||||
As of December 31, 2019 | |||||||||||||||||||||||||||||||||||
F.N.B. Corporation: | |||||||||||||||||||||||||||||||||||
Total capital | $ | 3,174 | 11.81 | % | $ | 2,687 | 10.00 | % | $ | 2,821 | 10.50 | % | |||||||||||||||||||||||
Tier 1 capital | 2,632 | 9.79 | 1,612 | 6.00 | 2,284 | 8.50 | |||||||||||||||||||||||||||||
Common equity tier 1 | 2,525 | 9.40 | n/a | n/a | 1,881 | 7.00 | |||||||||||||||||||||||||||||
Leverage | 2,632 | 8.20 | n/a | n/a | 1,283 | 4.00 | |||||||||||||||||||||||||||||
Risk-weighted assets | 26,866 | ||||||||||||||||||||||||||||||||||
FNBPA: | |||||||||||||||||||||||||||||||||||
Total capital | 3,039 | 11.34 | 2,681 | 10.00 | 2,815 | 10.50 | |||||||||||||||||||||||||||||
Tier 1 capital | 2,841 | 10.60 | 2,144 | 8.00 | 2,279 | 8.50 | |||||||||||||||||||||||||||||
Common equity tier 1 | 2,761 | 10.30 | 1,742 | 6.50 | 1,876 | 7.00 | |||||||||||||||||||||||||||||
Leverage | 2,841 | 8.87 | 1,601 | 5.00 | 1,281 | 4.00 | |||||||||||||||||||||||||||||
Risk-weighted assets | 26,806 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
(in millions) | |||||||||||||||||
Interest paid on deposits and other borrowings | $ | 216 | $ | 329 | $ | 230 | |||||||||||
Income taxes paid | 57 | 40 | 19 | ||||||||||||||
Transfers of loans to other real estate owned | 3 | 15 | 12 | ||||||||||||||
Loans transferred to held for sale from portfolio | 537 | 389 | — | ||||||||||||||
Loans transferred to portfolio from held for sale | — | 110 | — |
(in millions) |
Community
Banking |
Wealth
Manage- ment |
Insurance |
Parent
and Other |
Consolidated | ||||||||||||||||||||||||
At or for the Year Ended December 31, 2020 | |||||||||||||||||||||||||||||
Interest income | $ | 1,129 | $ | — | $ | — | $ | 1 | $ | 1,130 | |||||||||||||||||||
Interest expense | 188 | — | — | 20 | 208 | ||||||||||||||||||||||||
Net interest income | 941 | — | — | (19) | 922 | ||||||||||||||||||||||||
Provision for credit losses | 123 | — | — | — | 123 | ||||||||||||||||||||||||
Non-interest income | 233 | 49 | 22 | (10) | 294 | ||||||||||||||||||||||||
Non-interest expense (1)
|
675 | 35 | 19 | 8 | 737 | ||||||||||||||||||||||||
Amortization of intangibles | 12 | — | 1 | — | 13 | ||||||||||||||||||||||||
Income tax expense (benefit) | 61 | 3 | — | (7) | 57 | ||||||||||||||||||||||||
Net income (loss) | 303 | 11 | 2 | (30) | 286 | ||||||||||||||||||||||||
Total assets | 37,245 | 38 | 35 | 36 | 37,354 | ||||||||||||||||||||||||
Total intangibles | 2,279 | 9 | 28 | — | 2,316 | ||||||||||||||||||||||||
At or for the Year Ended December 31, 2019 | |||||||||||||||||||||||||||||
Interest income | $ | 1,245 | $ | — | $ | — | $ | 2 | $ | 1,247 | |||||||||||||||||||
Interest expense | 310 | — | — | 20 | 330 | ||||||||||||||||||||||||
Net interest income | 935 | — | — | (18) | 917 | ||||||||||||||||||||||||
Provision for credit losses | 44 | — | — | — | 44 | ||||||||||||||||||||||||
Non-interest income | 237 | 46 | 20 | (9) | 294 | ||||||||||||||||||||||||
Non-interest expense (1)
|
621 | 34 | 17 | 10 | 682 | ||||||||||||||||||||||||
Amortization of intangibles | 13 | — | 1 | — | 14 | ||||||||||||||||||||||||
Income tax expense (benefit) | 88 | 3 | — | (7) | 84 | ||||||||||||||||||||||||
Net income (loss) | 406 | 9 | 2 | (30) | 387 | ||||||||||||||||||||||||
Total assets | 34,491 | 32 | 35 | 57 | 34,615 | ||||||||||||||||||||||||
Total intangibles | 2,291 | 10 | 28 | — | 2,329 |
(in millions) |
Community
Banking |
Wealth
Manage- ment |
Insurance |
Consumer
Finance |
Parent
and Other |
Consolidated | |||||||||||||||||||||||||||||
At or for the Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||
Interest income | $ | 1,145 | $ | — | $ | — | $ | 25 | $ | — | $ | 1,170 | |||||||||||||||||||||||
Interest expense | 219 | — | — | 2 | 17 | 238 | |||||||||||||||||||||||||||||
Net interest income | 926 | — | — | 23 | (17) | 932 | |||||||||||||||||||||||||||||
Provision for credit losses | 54 | — | — | 6 | 1 | 61 | |||||||||||||||||||||||||||||
Non-interest income | 213 | 44 | 16 | 2 | 1 | 276 | |||||||||||||||||||||||||||||
Non-interest expense (1)
|
609 | 33 | 17 | 15 | 5 | 679 | |||||||||||||||||||||||||||||
Amortization of intangibles | 15 | 1 | — | — | — | 16 | |||||||||||||||||||||||||||||
Income tax expense (benefit) | 82 | 2 | — | 1 | (6) | 79 | |||||||||||||||||||||||||||||
Net income (loss) | 379 | 8 | (1) | 3 | (16) | 373 | |||||||||||||||||||||||||||||
Total assets | 32,997 | 26 | 25 | — | 54 | 33,102 | |||||||||||||||||||||||||||||
Total intangibles | 2,304 | 10 | 20 | — | — | 2,334 |
Measurement
Category |
Definition | |||||||
Level 1 | Valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets. | |||||||
Level 2 | Valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data. | |||||||
Level 3 | Valuation is derived from other valuation methodologies including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. |
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Assets Measured at Fair Value | |||||||||||||||||||||||
Debt securities available for sale | |||||||||||||||||||||||
U.S. Treasury | $ | 600 | $ | — | $ | — | $ | 600 | |||||||||||||||
U.S. government agencies | — | 172 | — | 172 | |||||||||||||||||||
U.S. government-sponsored entities | — | 161 | — | 161 | |||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||
Agency mortgage-backed securities | — | 994 | — | 994 | |||||||||||||||||||
Agency collateralized mortgage obligations | — | 1,124 | — | 1,124 | |||||||||||||||||||
Commercial mortgage-backed securities | — | 378 | — | 378 | |||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | — | 32 | — | 32 | |||||||||||||||||||
Other debt securities | — | 2 | — | 2 | |||||||||||||||||||
Total debt securities available for sale | 600 | 2,863 | — | 3,463 | |||||||||||||||||||
Loans held for sale | — | 144 | — | 144 | |||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Trading | — | 349 | — | 349 | |||||||||||||||||||
Not for trading | — | 3 | 24 | 27 | |||||||||||||||||||
Total derivative financial instruments | — | 352 | 24 | 376 | |||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | 600 | $ | 3,359 | $ | 24 | $ | 3,983 | |||||||||||||||
Liabilities Measured at Fair Value | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Trading | $ | — | $ | 37 | $ | — | $ | 37 | |||||||||||||||
Not for trading | — | 3 | — | 3 | |||||||||||||||||||
Total derivative financial instruments | — | 40 | — | 40 | |||||||||||||||||||
Total liabilities measured at fair value on a recurring basis | $ | — | $ | 40 | $ | — | $ | 40 |
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Assets Measured at Fair Value | |||||||||||||||||||||||
Debt securities available for sale | |||||||||||||||||||||||
U.S. government agencies | $ | — | $ | 151 | $ | — | $ | 151 | |||||||||||||||
U.S. government-sponsored entities | — | 226 | — | 226 | |||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||
Agency mortgage-backed securities | — | 1,314 | — | 1,314 | |||||||||||||||||||
Agency collateralized mortgage obligations | — | 1,240 | — | 1,240 | |||||||||||||||||||
Commercial mortgage-backed securities | — | 345 | — | 345 | |||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | — | 11 | — | 11 | |||||||||||||||||||
Other debt securities | — | 2 | — | 2 | |||||||||||||||||||
Total debt securities available for sale | — | 3,289 | — | 3,289 | |||||||||||||||||||
Loans held for sale | — | 41 | — | 41 | |||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Trading | — | 149 | — | 149 | |||||||||||||||||||
Not for trading | — | 2 | 3 | 5 | |||||||||||||||||||
Total derivative financial instruments | — | 151 | 3 | 154 | |||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | — | $ | 3,481 | $ | 3 | $ | 3,484 | |||||||||||||||
Liabilities Measured at Fair Value | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Trading | $ | — | $ | 24 | $ | — | $ | 24 | |||||||||||||||
Not for trading | — | 1 | — | 1 | |||||||||||||||||||
Total derivative financial instruments | — | 25 | — | 25 | |||||||||||||||||||
Total liabilities measured at fair value on a recurring basis | $ | — | $ | 25 | $ | — | $ | 25 |
(in millions) |
Interest
Rate Lock Commitments |
Total | |||||||||||||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 3 | $ | 3 | |||||||||||||||||||||||||
Purchases, issuances, sales and settlements: | |||||||||||||||||||||||||||||
Issuances | 24 | 24 | |||||||||||||||||||||||||||
Settlements | (3) | (3) | |||||||||||||||||||||||||||
Balance at end of period | $ | 24 | $ | 24 | |||||||||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 1 | $ | 1 | |||||||||||||||||||||||||
Purchases, issuances, sales and settlements: | |||||||||||||||||||||||||||||
Issuances | 3 | 3 | |||||||||||||||||||||||||||
Settlements | (1) | (1) | |||||||||||||||||||||||||||
Balance at end of period | $ | 3 | $ | 3 |
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Collateral dependent loans | $ | — | $ | — | $ | 45 | $ | 45 | |||||||||||||||
Other real estate owned | — | — | 3 | 3 | |||||||||||||||||||
Other assets - SBA servicing asset | — | — | 3 | 3 | |||||||||||||||||||
Other assets - MSRs | — | — | 36 | 36 | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | 5 | $ | 5 | |||||||||||||||
Other real estate owned | — | — | 4 | 4 | |||||||||||||||||||
Other assets - SBA servicing asset | — | — | 3 | 3 | |||||||||||||||||||
Other assets - MSRs | — | — | 30 | 30 |
Fair Value Measurements | |||||||||||||||||||||||||||||
(in millions) |
Carrying
Amount |
Fair
Value |
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,383 | $ | 1,383 | $ | 1,383 | $ | — | $ | — | |||||||||||||||||||
Debt securities available for sale | 3,463 | 3,463 | 600 | 2,863 | — | ||||||||||||||||||||||||
Debt securities held to maturity | 2,868 | 2,973 | — | 2,973 | — | ||||||||||||||||||||||||
Net loans and leases, including loans held for sale | 25,250 | 25,012 | — | 144 | 24,868 | ||||||||||||||||||||||||
Loan servicing rights | 39 | 39 | — | — | 39 | ||||||||||||||||||||||||
Derivative assets | 376 | 376 | — | 352 | 24 | ||||||||||||||||||||||||
Accrued interest receivable | 90 | 90 | 90 | — | — | ||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||
Deposits | 29,122 | 29,158 | 25,460 | 3,698 | — | ||||||||||||||||||||||||
Short-term borrowings | 1,804 | 1,809 | 1,809 | — | — | ||||||||||||||||||||||||
Long-term borrowings | 1,095 | 1,068 | — | — | 1,068 | ||||||||||||||||||||||||
Derivative liabilities | 40 | 40 | — | 40 | — | ||||||||||||||||||||||||
Accrued interest payable | 13 | 13 | 13 | — | — | ||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 599 | $ | 599 | $ | 599 | $ | — | $ | — | |||||||||||||||||||
Debt securities available for sale | 3,289 | 3,289 | — | 3,289 | — | ||||||||||||||||||||||||
Debt securities held to maturity | 3,275 | 3,305 | — | 3,305 | — | ||||||||||||||||||||||||
Net loans and leases, including loans held for sale | 23,144 | 22,930 | — | 41 | 22,889 | ||||||||||||||||||||||||
Loan servicing rights | 46 | 48 | — | — | 48 | ||||||||||||||||||||||||
Derivative assets | 154 | 154 | — | 151 | 3 | ||||||||||||||||||||||||
Accrued interest receivable | 109 | 109 | 109 | — | — | ||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||
Deposits | 24,786 | 24,797 | 20,058 | 4,739 | — | ||||||||||||||||||||||||
Short-term borrowings | 3,216 | 3,219 | 3,219 | — | — | ||||||||||||||||||||||||
Long-term borrowings | 1,340 | 1,355 | — | — | 1,355 | ||||||||||||||||||||||||
Derivative liabilities | 25 | 25 | — | 25 | — | ||||||||||||||||||||||||
Accrued interest payable | 21 | 21 | 21 | — | — |
Balance Sheets (in millions)
December 31
|
2020 | 2019 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 380 | $ | 251 | |||||||
Other assets | 10 | 18 | |||||||||
Investment in bank subsidiary | 5,064 | 5,072 | |||||||||
Investments in and advances to non-bank subsidiaries | 371 | 104 | |||||||||
Total Assets | $ | 5,825 | $ | 5,445 | |||||||
Liabilities | |||||||||||
Other liabilities | $ | 40 | $ | 34 | |||||||
Advances from affiliates | 197 | 197 | |||||||||
Long-term borrowings | 621 | 323 | |||||||||
Subordinated notes: | |||||||||||
Short-term | 7 | 7 | |||||||||
Long-term | 1 | 1 | |||||||||
Total Liabilities | 866 | 562 | |||||||||
Stockholders’ Equity | 4,959 | 4,883 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 5,825 | $ | 5,445 |
Statements of Income (in millions)
Year Ended December 31
|
2020 | 2019 | 2018 | ||||||||||||||
Income | |||||||||||||||||
Dividend income from subsidiaries: | |||||||||||||||||
Bank | $ | 300 | $ | 179 | $ | 162 | |||||||||||
Non-bank | 4 | 2 | 8 | ||||||||||||||
304 | 181 | 170 | |||||||||||||||
Interest income | 6 | — | 4 | ||||||||||||||
Other income | — | — | 5 | ||||||||||||||
Total Income | 310 | 181 | 179 | ||||||||||||||
Expenses | |||||||||||||||||
Interest expense | 25 | 19 | 20 | ||||||||||||||
Other expenses | 18 | 18 | 15 | ||||||||||||||
Total Expenses | 43 | 37 | 35 | ||||||||||||||
Income Before Taxes and Equity in Undistributed Income of Subsidiaries | 267 | 144 | 144 | ||||||||||||||
Income tax benefit | 7 | 7 | 6 | ||||||||||||||
274 | 151 | 150 | |||||||||||||||
Equity in undistributed income (loss) of subsidiaries: | |||||||||||||||||
Bank | 15 | 236 | 225 | ||||||||||||||
Non-bank | (3) | — | (2) | ||||||||||||||
Net Income | $ | 286 | $ | 387 | $ | 373 |
Statements of Cash Flows (in millions)
Year Ended December 31
|
2020 | 2019 | 2018 | ||||||||||||||
Operating Activities | |||||||||||||||||
Net income | $ | 286 | $ | 387 | $ | 373 | |||||||||||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||||||||||
Undistributed earnings from subsidiaries | (12) | (236) | (222) | ||||||||||||||
Other, net | 13 | 2 | (13) | ||||||||||||||
Net cash flows provided by operating activities | 287 | 153 | 138 | ||||||||||||||
Investing Activities | |||||||||||||||||
Proceeds from sale of securities available for sale | — | — | 1 | ||||||||||||||
Net decrease in advances to subsidiaries | — | — | 20 | ||||||||||||||
Payment for further investment in subsidiaries | (270) | (47) | (22) | ||||||||||||||
Net cash received in business combinations | — | — | 123 | ||||||||||||||
Net cash flows (used in) provided by investing activities | (270) | (47) | 122 | ||||||||||||||
Financing Activities | |||||||||||||||||
Net decrease in advance from affiliate | — | — | (19) | ||||||||||||||
Net decrease in short-term borrowings | — | — | (1) | ||||||||||||||
Decrease in long-term debt | (4) | (77) | (2) | ||||||||||||||
Increase in long-term debt | 302 | 121 | 1 | ||||||||||||||
Other, net | (21) | 12 | 14 | ||||||||||||||
Cash dividends paid: | |||||||||||||||||
Preferred stock | (8) | (8) | (8) | ||||||||||||||
Common stock | (157) | (157) | (157) | ||||||||||||||
Net cash flows provided by (used in) financing activities | 112 | (109) | (172) | ||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 129 | (3) | 88 | ||||||||||||||
Cash and cash equivalents at beginning of year | 251 | 254 | 166 | ||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 380 | $ | 251 | $ | 254 | |||||||||||
Cash paid during the year for: | |||||||||||||||||
Interest | $ | 26 | $ | 20 | $ | 17 |
(Dollars in millions, except per share data) | |||||||||||||||||||||||
Quarter Ended 2020
|
Dec. 31 | Sept. 30 | June 30 | Mar. 31 | |||||||||||||||||||
Total interest income | $ | 270 | $ | 273 | $ | 281 | $ | 306 | |||||||||||||||
Total interest expense | 36 | 46 | 52 | 74 | |||||||||||||||||||
Net interest income | 234 | 227 | 229 | 232 | |||||||||||||||||||
Provision for credit losses | 18 | 27 | 30 | 48 | |||||||||||||||||||
Total non-interest income | 68 | 80 | 77 | 69 | |||||||||||||||||||
Total non-interest expense | 199 | 180 | 176 | 195 | |||||||||||||||||||
Net income | 72 | 83 | 84 | 47 | |||||||||||||||||||
Net income available to common stockholders | 70 | 81 | 82 | 45 | |||||||||||||||||||
Per Common Share | |||||||||||||||||||||||
Basic earnings per share | $ | 0.22 | $ | 0.25 | $ | 0.25 | $ | 0.14 | |||||||||||||||
Diluted earnings per share | 0.22 | 0.25 | 0.25 | 0.14 | |||||||||||||||||||
Quarter Ended 2019
|
|||||||||||||||||||||||
Total interest income | $ | 306 | $ | 314 | $ | 317 | $ | 310 | |||||||||||||||
Total interest expense | 80 | 84 | 87 | 79 | |||||||||||||||||||
Net interest income | 226 | 230 | 230 | 231 | |||||||||||||||||||
Provision for credit losses | 7 | 12 | 11 | 14 | |||||||||||||||||||
Other non-interest income | 74 | 80 | 75 | 65 | |||||||||||||||||||
Total non-interest expense | 177 | 178 | 175 | 166 | |||||||||||||||||||
Net income | 95 | 103 | 95 | 94 | |||||||||||||||||||
Net income available to common stockholders | 93 | 101 | 93 | 92 | |||||||||||||||||||
Per Common Share | |||||||||||||||||||||||
Basic earnings per share | $ | 0.29 | $ | 0.31 | $ | 0.29 | $ | 0.28 | |||||||||||||||
Diluted earnings per share | 0.29 | 0.31 | 0.29 | 0.28 |
Plan Category |
Number of
Securities to be Issued Upon Exercise of Outstanding Stock Options, Warrants and Rights |
Weighted
Average Exercise Price of Outstanding Stock Options, Warrants and Rights |
Number of
Securities Remaining for Future Issuance Under Equity Compensation Plans (excluding securities reflected in column (a)) |
||||||||||||||||||||
(a) | (b) | (c) | |||||||||||||||||||||
Equity compensation plans approved by security holders | 4,322,115 | (1) | n/a | 5,504,721 | (2) | ||||||||||||||||||
Equity compensation plans not approved by security holders | 196,086 | (3) | $ | 8.61 | n/a |
Exhibit Number | Description | |||||||
2.1. | ||||||||
3.1. | ||||||||
3.2. | ||||||||
4.3. | ||||||||
4.4. | ||||||||
4.5. | ||||||||
4.6. | ||||||||
4.7. | ||||||||
4.8 | ||||||||
4.9. | There are no instruments with respect to long-term debt of FNB and its subsidiaries that involve securities authorized under the instrument in an amount exceeding 10 percent of the total assets of FNB and its subsidiaries on a consolidated basis. FNB agrees to provide the SEC with a copy of instruments defining the rights of holders of long-term debt of FNB and its subsidiaries upon request. | |||||||
10.1. (P) | Form of Deferred Compensation Agreement by and between First National Bank of Pennsylvania and four of our executive officers. (Incorporated by reference to Exhibit 10.3. of FNB’s Annual Report on Form 10-K for the fiscal year ended December 31, 1993 (File No. 000-08144)). * | |||||||
10.3. | ||||||||
10.4. (P) | Basic Retirement Plan (formerly the Supplemental Executive Retirement Plan) of F.N.B. Corporation effective January 1, 1992. (Incorporated by reference to Exhibit 10.9. of FNB’s Annual Report on Form 10-K for the fiscal year ended December 31, 1993 (File No. 000-08144)). * | |||||||
10.6. | ||||||||
10.10. | ||||||||
Exhibit Number | Description | |||||||
10.11. | ||||||||
10.12. | ||||||||
10.13. | ||||||||
10.15. | ||||||||
10.16. | ||||||||
14. | ||||||||
21. | ||||||||
23. | ||||||||
31.1. | ||||||||
31.2. | ||||||||
32.1. | ||||||||
32.2. | ||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). |
* | Management contracts and compensatory plans or arrangements required to be filed as exhibits pursuant to Item 15(a)(3) of this Report. |
|
F.N.B. CORPORATION
|
|||||||
By | /s/ Vincent J. Delie, Jr. | |||||||
Vincent J. Delie, Jr. | ||||||||
Chairman, President and Chief Executive Officer |
/s/ Vincent J. Delie, Jr. | Chairman, President and Chief Executive Officer | February 25, 2021 | ||||||
Vincent J. Delie, Jr. | (Principal Executive Officer) | |||||||
/s/ Vincent J. Calabrese, Jr. | Chief Financial Officer | February 25, 2021 | ||||||
Vincent J. Calabrese, Jr. | (Principal Financial Officer) | |||||||
/s/ James L. Dutey | Corporate Controller and Senior Vice President | February 25, 2021 | ||||||
James L. Dutey | (Principal Accounting Officer) | |||||||
/s/ Pamela A. Bena | Director | February 25, 2021 | ||||||
Pamela A. Bena | ||||||||
/s/ William B. Campbell | Director | February 25, 2021 | ||||||
William B. Campbell | ||||||||
/s/ James D. Chiafullo | Director | February 25, 2021 | ||||||
James D. Chiafullo | ||||||||
/s/ Mary Jo Dively | Director | February 25, 2021 | ||||||
Mary Jo Dively | ||||||||
/s/ Robert A. Hormell | Director | February 25, 2021 | ||||||
Robert A. Hormell | ||||||||
/s/ David J. Malone | Director | February 25, 2021 | ||||||
David J. Malone | ||||||||
/s/ Frank C. Mencini | Director | February 25, 2021 | ||||||
Frank C. Mencini | ||||||||
/s/ David L. Motley | Director | February 25, 2021 | ||||||
David L. Motley | ||||||||
/s/ Heidi A. Nicholas | Director | February 25, 2021 | ||||||
Heidi A. Nicholas | ||||||||
/s/ John S. Stanik | Director | February 25, 2021 | ||||||
John S. Stanik | ||||||||
/s/ William J. Strimbu | Director | February 25, 2021 | ||||||
William J. Strimbu |
NAME | INCORPORATED | |||||||||||||
1) | First National Bank of Pennsylvania | United States | ||||||||||||
2) | First National Insurance Agency, LLC | Delaware |
Date: | February 25, 2021 | /s/ Vincent J. Delie, Jr. | ||||||
Vincent J. Delie, Jr. | ||||||||
Chairman, President and Chief Executive Officer |
Date: | February 25, 2021 | /s/ Vincent J. Calabrese, Jr. | ||||||
Vincent J. Calabrese, Jr. | ||||||||
Chief Financial Officer |
Date: | February 25, 2021 | /s/ Vincent J. Delie, Jr. | ||||||
Vincent J. Delie, Jr. | ||||||||
Chairman, President and Chief Executive Officer |
Date: | February 25, 2021 | /s/ Vincent J. Calabrese, Jr. | ||||||
Vincent J. Calabrese, Jr. | ||||||||
Chief Financial Officer |