☒ | 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 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
Item 9C. | ||||||||
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 | FVO | Fair value option | |||||||||||
AFS | Available for sale | GAAP | U.S. generally accepted accounting principles | |||||||||||
ALCO | Asset/Liability Committee | GLB Act | Gramm-Leach Bliley Act of 1999 | |||||||||||
AOCI | Accumulated other comprehensive income | GSE | Government-sponsored entity | |||||||||||
ARRC | Alternative Reference Rates Committee | HTM | Held to maturity | |||||||||||
ASC | Accounting Standards Codification | Howard | Howard Bancorp, Inc. | |||||||||||
ASU | Accounting Standards Update | HUD | Department of Housing and Urban Development | |||||||||||
AULC | Allowance for unfunded loan commitments | IDI | Insured depository institution | |||||||||||
BOLI | Bank owned life insurance | IRLC | Interest rate lock commitment | |||||||||||
Basel III | Basel III Capital Rules | LCR | Liquidity Coverage Ratio | |||||||||||
BHC Act | Bank Holding Company Act of 1956, as amended | LGD | Loss given default | |||||||||||
CECL | Current expected credit losses | LIBOR | London Inter-bank Offered Rate | |||||||||||
CET1 | Common equity tier 1 | LIHTC | Low income housing tax credit | |||||||||||
CFPB | Consumer Financial Protection Bureau | MCH | Months of Cash on Hand | |||||||||||
COVID-19 | Novel coronavirus disease of 2019 | MD&A | Management's Discussion and Analysis of Financial Condition and Results of Operations | |||||||||||
CRA | Community Reinvestment Act of 1977 | MSA | Mortgage servicing asset | |||||||||||
DIF | Deposit Insurance Fund | MSRs | Mortgage servicing rights | |||||||||||
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 | NYSE | New York Stock Exchange | |||||||||||
DOJ | U.S. Department of Justice | OCI | Other comprehensive income | |||||||||||
DTA | Deferred tax asset | OCC | Office of the Comptroller of the Currency | |||||||||||
DTL | Deferred tax liability | OREO | Other real estate owned | |||||||||||
Economic Growth Act | Economic Growth, Regulatory Relief and Consumer Protection Act | PCD | Purchase credit deteriorated | |||||||||||
ERISA | Employee Retirement Income Security Act of 1974 | Penn-Ohio | Penn-Ohio Life Insurance Company | |||||||||||
EVE | Economic value of equity | PPP | Paycheck Protection Program | |||||||||||
FASB | Financial Accounting Standards Board | RESPA | Real Estate Settlement Procedures Act | |||||||||||
FCA | United Kingdom’s Financial Conduct Authority | RRR | Reference rate reform | |||||||||||
FDI Act | Federal Deposit Insurance Act | R&S | Reasonable and Supportable | |||||||||||
FDIC | Federal Deposit Insurance Corporation | SBA | Small Business Administration | |||||||||||
FDICIA | Federal Deposit Insurance Corporation Improvement Act of 1991 | SBIC | Small Business Investment Company | |||||||||||
FHLB | Federal Home Loan Bank | SEC | Securities and Exchange Commission | |||||||||||
FICO | Fair Isaac Corporation | SOFR | Secured Overnight Financing Rate | |||||||||||
FINRA | Financial Industry Regulatory Authority | SOX | Sarbanes-Oxley Act of 2002 | |||||||||||
FNB | F.N.B. Corporation | TCJA | Tax Cuts and Jobs Act of 2017 | |||||||||||
FNBIA | F.N.B. Investment Advisors, Inc. | TDR | Troubled debt restructuring | |||||||||||
FNBPA | First National Bank of Pennsylvania | TILA | Truth in Lending Act | |||||||||||
FNIA | First National Insurance Agency, LLC | TPS | Trust preferred securities | |||||||||||
FNTC | First National Trust Company | Union | UB Bancorp | |||||||||||
FOMC | Federal Open Market Committee | U.S. | United States of America | |||||||||||
FSOC | Financial Stability Oversight Council | UST | U.S. Department of the Treasury | |||||||||||
FRB | Board of Governors of the Federal Reserve System | VIE | Variable interest entity | |||||||||||
FTE | Fully taxable equivalent | |||||||||||||
December 31, 2022 | Community Banking | ||||
Pennsylvania | 184 | ||||
Ohio | 28 | ||||
Maryland | 31 | ||||
West Virginia | 2 | ||||
North Carolina | 96 | ||||
South Carolina | 5 | ||||
Washington, D.C. | 1 | ||||
Virginia | 1 | ||||
Total number of branches/retail offices | 348 | ||||
Total branches/retail offices owned | 194 | ||||
Total branches/retail offices leased | 154 |
Name | Age | Principal Occupation | ||||||||||||
Vincent J. Delie, Jr. | 58 | President and Chief Executive Officer of FNB; Chief Executive Officer of FNBPA | ||||||||||||
Vincent J. Calabrese, Jr. | 60 | Chief Financial Officer of FNB; Executive Vice President of FNBPA | ||||||||||||
Gary L. Guerrieri | 62 | Chief Credit Officer of FNB; Executive Vice President of FNBPA | ||||||||||||
James G. Orie | 64 | Chief Legal Officer and Corporate Secretary of FNB; Executive Vice President of FNBPA | ||||||||||||
James L. Dutey | 49 | Corporate Controller and Senior Vice President of FNB | ||||||||||||
David B. Mitchell, II | 65 | Chief Wholesale Banking Officer of FNBPA | ||||||||||||
Barry C. Robinson | 59 | Chief Consumer Banking Officer of FNBPA |
Year-to-Date Results Summary | 2022 | 2021 | ||||||||||||
Reported results | ||||||||||||||
Net income available to common stockholders (millions) | $ | 431.1 | $ | 396.6 | ||||||||||
Net income per diluted common share | 1.22 | 1.23 | ||||||||||||
Book value per common share (period-end) | 15.39 | 15.81 | ||||||||||||
Common equity tier 1 capital ratio | 9.8 | % | 9.9 | % | ||||||||||
Operating results (non-GAAP) | ||||||||||||||
Operating net income available to common stockholders (millions) | $ | 494.9 | $ | 400.0 | ||||||||||
Operating net income per diluted common share | 1.40 | 1.24 | ||||||||||||
Average diluted common shares outstanding (thousands) | 354,052 | 323,481 | ||||||||||||
Significant items impacting earnings (1) (millions) | ||||||||||||||
Pre-tax merger-related expenses | $ | (45.3) | $ | (1.8) | ||||||||||
After-tax impact of merger-related expenses | (35.8) | (1.4) | ||||||||||||
Pre-tax provision expense related to acquisitions | (28.5) | — | ||||||||||||
After-tax impact of provision expense related to acquisitions | (22.5) | — | ||||||||||||
Pre-tax branch consolidation costs | (7.0) | (2.6) | ||||||||||||
After-tax impact of branch consolidation costs | (5.5) | (2.1) | ||||||||||||
Total significant items pre-tax | $ | (80.8) | $ | (4.4) | ||||||||||
Total significant items after-tax | $ | (63.8) | $ | (3.5) | ||||||||||
Capital measures | ||||||||||||||
Common equity tier 1 | 9.82 | % | 9.92 | % | ||||||||||
Tangible common equity to tangible assets (period-end) (non-GAAP) | 7.24 | 7.36 | ||||||||||||
Tangible book value per common share (period-end) (non-GAAP) | $ | 8.27 | $ | 8.59 | ||||||||||
(1) Favorable (unfavorable) impact on earnings |
Year Ended December 31 | $ Change | % Change | |||||||||||||||||||||
(in thousands, except per share data) | 2022 | 2021 | |||||||||||||||||||||
Net interest income | $ | 1,119,780 | $ | 906,476 | $ | 213,304 | 23.5 | % | |||||||||||||||
Provision for credit losses | 64,206 | 629 | 63,577 | 10,108 | |||||||||||||||||||
Non-interest income | 323,553 | 330,419 | (6,866) | (2.1) | |||||||||||||||||||
Non-interest expense | 826,392 | 733,168 | 93,224 | 12.7 | |||||||||||||||||||
Income taxes | 113,626 | 98,496 | 15,130 | 15.4 | |||||||||||||||||||
Net income | 439,109 | 404,602 | 34,507 | 8.5 | |||||||||||||||||||
Less: Preferred stock dividends | 8,041 | 8,041 | — | — | |||||||||||||||||||
Net income available to common stockholders | $ | 431,068 | $ | 396,561 | $ | 34,507 | 8.7 | % | |||||||||||||||
Earnings per common share – Basic | $ | 1.23 | $ | 1.24 | $ | (0.01) | (0.8) | % | |||||||||||||||
Earnings per common share – Diluted | 1.22 | 1.23 | (0.01) | (0.8) | |||||||||||||||||||
Cash dividends per common share | 0.48 | 0.48 | — | — |
Year Ended December 31 | 2022 | 2021 | |||||||||
Return on average equity | 8.02 | % | 8.04 | % | |||||||
Return on average tangible common equity (2) | 15.31 | 15.53 | |||||||||
Return on average assets | 1.05 | 1.05 | |||||||||
Return on average tangible assets (2) | 1.14 | 1.14 | |||||||||
Book value per common share (1) | $ | 15.39 | $ | 15.81 | |||||||
Tangible book value per common share (1) (2) | 8.27 | 8.59 | |||||||||
Equity to assets (1) | 12.93 | % | 13.03 | % | |||||||
Average equity to average assets | 13.05 | 13.04 | |||||||||
Common equity to assets (1) | 12.68 | 12.76 | |||||||||
Tangible equity to tangible assets (1) (2) | 7.50 | 7.65 | |||||||||
Tangible common equity to tangible assets (1) (2) | 7.24 | 7.36 | |||||||||
Common equity tier 1 capital ratio (1) | 9.82 | 9.92 | |||||||||
Dividend payout ratio | 39.54 | 39.20 |
Year Ended December 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(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 | $ | 2,174,415 | $ | 24,005 | 1.10 | % | $ | 2,723,493 | $ | 3,732 | 0.14 | % | $ | 470,466 | $ | 1,910 | 0.41 | % | |||||||||||||||||||||||||||||||||||
Federal funds sold | 500 | 29 | 5.81 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Taxable investment securities (1) | 6,126,544 | 115,956 | 1.89 | 5,131,473 | 85,633 | 1.67 | 5,038,547 | 106,266 | 2.11 | ||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt investment securities (1) (2) | 1,010,819 | 34,508 | 3.41 | 1,091,130 | 37,408 | 3.43 | 1,132,307 | 40,121 | 3.54 | ||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 189,360 | 8,151 | 4.30 | 227,181 | 8,276 | 3.64 | 212,328 | 9,817 | 4.62 | ||||||||||||||||||||||||||||||||||||||||||||
Loans and leases (2) (3) | 27,829,166 | 1,113,593 | 4.00 | 25,075,559 | 880,609 | 3.51 | 25,211,191 | 984,662 | 3.91 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets (2) | 37,330,804 | 1,296,242 | 3.47 | 34,248,836 | 1,015,658 | 2.97 | 32,064,839 | 1,142,776 | 3.56 | ||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 429,741 | 386,648 | 359,936 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (377,252) | (363,462) | (350,309) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and equipment | 405,023 | 338,644 | 336,117 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 4,166,392 | 3,992,426 | 4,196,847 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 41,954,708 | $ | 38,603,092 | $ | 36,607,430 | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing demand | $ | 14,951,905 | 78,599 | 0.53 | $ | 13,866,846 | 18,676 | 0.13 | $ | 12,161,766 | 57,224 | 0.47 | |||||||||||||||||||||||||||||||||||||||||
Savings | 3,976,285 | 8,512 | 0.21 | 3,442,809 | 664 | 0.02 | 2,890,440 | 2,822 | 0.10 | ||||||||||||||||||||||||||||||||||||||||||||
Certificates and other time | 3,004,482 | 21,410 | 0.71 | 3,208,586 | 27,875 | 0.87 | 4,261,738 | 72,825 | 1.71 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 21,932,672 | 108,521 | 0.49 | 20,518,241 | 47,215 | 0.23 | 19,313,944 | 132,871 | 0.69 | ||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | 1,427,361 | 24,535 | 1.72 | 1,660,070 | 26,675 | 1.61 | 2,515,558 | 38,504 | 1.53 | ||||||||||||||||||||||||||||||||||||||||||||
Long-term borrowings | 836,154 | 32,118 | 3.84 | 924,090 | 24,344 | 2.63 | 1,473,708 | 36,849 | 2.50 | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 24,196,187 | 165,174 | 0.68 | 23,102,401 | 98,234 | 0.43 | 23,303,210 | 208,224 | 0.89 | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing demand | 11,639,499 | 10,090,117 | 8,004,557 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits and borrowings | 35,835,686 | 0.46 | 33,192,518 | 0.30 | 31,307,767 | 0.66 | |||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 643,179 | 377,386 | 395,363 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 36,478,865 | 33,569,904 | 31,703,130 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 5,475,843 | 5,033,188 | 4,904,300 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 41,954,708 | $ | 38,603,092 | $ | 36,607,430 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest-earning assets | $ | 13,134,617 | $ | 11,146,435 | $ | 8,761,629 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (FTE) (2) | 1,131,068 | 917,424 | 934,552 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax-equivalent adjustment | (11,288) | (10,948) | (12,470) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 1,119,780 | $ | 906,476 | $ | 922,082 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest spread | 2.79 | % | 2.54 | % | 2.67 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin (2) | 3.03 | % | 2.68 | % | 2.91 | % |
2022 vs 2021 | 2021 vs 2020 | ||||||||||||||||||||||||||||||||||
(in thousands) | Volume | Rate | Net | Volume | Rate | Net | |||||||||||||||||||||||||||||
Interest Income (1) | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits with banks | $ | (752) | $ | 21,025 | $ | 20,273 | $ | 3,087 | $ | (1,265) | $ | 1,822 | |||||||||||||||||||||||
Federal funds sold | 15 | 14 | 29 | — | — | — | |||||||||||||||||||||||||||||
Securities (2) | 14,637 | 12,786 | 27,423 | 1,405 | (24,751) | (23,346) | |||||||||||||||||||||||||||||
Loans held for sale | (1,004) | 879 | (125) | 1,433 | (2,974) | (1,541) | |||||||||||||||||||||||||||||
Loans and leases (2) | 88,865 | 144,119 | 232,984 | (13,799) | (90,254) | (104,053) | |||||||||||||||||||||||||||||
Total interest income (2) | 101,761 | 178,823 | 280,584 | (7,874) | (119,244) | (127,118) | |||||||||||||||||||||||||||||
Interest Expense (1) | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand | 1,021 | 58,902 | 59,923 | 2,576 | (41,124) | (38,548) | |||||||||||||||||||||||||||||
Savings | 91 | 7,757 | 7,848 | 94 | (2,252) | (2,158) | |||||||||||||||||||||||||||||
Certificates and other time | (1,192) | (5,273) | (6,465) | (11,465) | (33,485) | (44,950) | |||||||||||||||||||||||||||||
Short-term borrowings | (3,747) | 1,607 | (2,140) | (12,380) | 551 | (11,829) | |||||||||||||||||||||||||||||
Long-term borrowings | (2,325) | 10,099 | 7,774 | (13,558) | 1,053 | (12,505) | |||||||||||||||||||||||||||||
Total interest expense | (6,152) | 73,092 | 66,940 | (34,733) | (75,257) | (109,990) | |||||||||||||||||||||||||||||
Net change (2) | $ | 107,913 | $ | 105,731 | $ | 213,644 | $ | 26,859 | $ | (43,987) | $ | (17,128) |
2022 vs 2021 | 2021 vs 2020 | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | $ Change | % Change | 2020 | $ Change | % Change | ||||||||||||||||||||||||||||||||||
Provision for credit losses (on loans and leases) | $ | 61,800 | $ | (4,853) | $ | 66,653 | 1,373 | % | $ | 121,756 | $ | (126,609) | (104) | % | |||||||||||||||||||||||||||
Provision for unfunded loan commitments | 2,230 | 5,472 | (3,242) | (59) | 1,046 | 4,426 | 423 | ||||||||||||||||||||||||||||||||||
Provision for credit losses | $ | 64,030 | $ | 619 | $ | 63,411 | 10,244 | % | $ | 122,802 | $ | (122,183) | (99) | % | |||||||||||||||||||||||||||
Net loan charge-offs | $ | 16,151 | $ | 13,949 | $ | 2,202 | 16 | % | $ | 59,808 | $ | (45,859) | (77) | % | |||||||||||||||||||||||||||
Net loan charge-offs / total average loans and leases | 0.06 | % | 0.06 | % | 0.24 | % | |||||||||||||||||||||||||||||||||||
2022 vs 2021 | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | $ Change | % Change | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||
Service charges | $ | 137,698 | $ | 121,735 | $ | 15,963 | 13.1 | % | $ | 108,146 | $ | 13,589 | 12.6 | % | ||||||||||||||||||||||||||||||
Trust services | 39,033 | 37,370 | 1,663 | 4.5 | 31,249 | 6,121 | 19.6 | |||||||||||||||||||||||||||||||||||||
Insurance commissions and fees | 24,253 | 25,522 | (1,269) | (5.0) | 24,212 | 1,310 | 5.4 | |||||||||||||||||||||||||||||||||||||
Securities commissions and fees | 23,715 | 22,207 | 1,508 | 6.8 | 17,441 | 4,766 | 27.3 | |||||||||||||||||||||||||||||||||||||
Capital markets income | 35,295 | 36,812 | (1,517) | (4.1) | 39,337 | (2,525) | (6.4) | |||||||||||||||||||||||||||||||||||||
Mortgage banking operations | 20,646 | 37,355 | (16,709) | (44.7) | 49,665 | (12,310) | (24.8) | |||||||||||||||||||||||||||||||||||||
Dividends on non-marketable equity securities | 11,953 | 8,588 | 3,365 | 39.2 | 13,736 | (5,148) | (37.5) | |||||||||||||||||||||||||||||||||||||
Bank owned life insurance | 11,942 | 14,866 | (2,924) | (19.7) | 13,835 | 1,031 | 7.5 | |||||||||||||||||||||||||||||||||||||
Net securities gains | 48 | 193 | (145) | (75.1) | 282 | (89) | (31.6) | |||||||||||||||||||||||||||||||||||||
Loss on debt extinguishment | — | — | — | — | (16,655) | 16,655 | n/m | |||||||||||||||||||||||||||||||||||||
Other | 18,970 | 25,771 | (6,801) | (26.4) | 13,308 | 12,463 | 93.7 | |||||||||||||||||||||||||||||||||||||
Total non-interest income | $ | 323,553 | $ | 330,419 | $ | (6,866) | (2.1) | % | $ | 294,556 | $ | 35,863 | 12.2 | % | ||||||||||||||||||||||||||||||
n/m - not meaningful |
2022 vs 2021 | 2021 vs 2020 | |||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | $ Change | % Change | 2020 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 426,237 | $ | 418,328 | $ | 7,909 | 1.9 | % | $ | 405,529 | $ | 12,799 | 3.2 | % | ||||||||||||||||||||||||||||||
Net occupancy | 68,189 | 58,368 | 9,821 | 16.8 | 71,166 | (12,798) | (18.0) | |||||||||||||||||||||||||||||||||||||
Equipment | 76,261 | 69,973 | 6,288 | 9.0 | 65,312 | 4,661 | 7.1 | |||||||||||||||||||||||||||||||||||||
Amortization of intangibles | 13,868 | 12,117 | 1,751 | 14.5 | 13,362 | (1,245) | (9.3) | |||||||||||||||||||||||||||||||||||||
Outside services | 72,961 | 70,553 | 2,408 | 3.4 | 69,258 | 1,295 | 1.9 | |||||||||||||||||||||||||||||||||||||
Marketing | 15,674 | 14,320 | 1,354 | 9.5 | 12,559 | 1,761 | 14.0 | |||||||||||||||||||||||||||||||||||||
FDIC insurance | 20,412 | 17,881 | 2,531 | 14.2 | 20,073 | (2,192) | (10.9) | |||||||||||||||||||||||||||||||||||||
Bank shares and franchise taxes | 13,954 | 12,629 | 1,325 | 10.5 | 14,376 | (1,747) | (12.2) | |||||||||||||||||||||||||||||||||||||
Merger-related | 45,259 | 1,764 | 43,495 | 2,466 | — | 1,764 | — | |||||||||||||||||||||||||||||||||||||
Other | 73,577 | 57,235 | 16,342 | 28.6 | 78,714 | (21,479) | (27.3) | |||||||||||||||||||||||||||||||||||||
Total non-interest expense | $ | 826,392 | $ | 733,168 | $ | 93,224 | 12.7 | % | $ | 750,349 | $ | (17,181) | (2.3) | % |
$ | % | ||||||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | Change | Change | |||||||||||||||||||
Total non-interest expense, as reported | $ | 826,392 | $ | 733,168 | $ | 93,224 | 12.7 | % | |||||||||||||||
Significant items: | |||||||||||||||||||||||
Branch consolidations | (7,016) | (2,644) | (4,372) | ||||||||||||||||||||
Merger-related | (45,259) | (1,764) | (43,495) | ||||||||||||||||||||
Total non-interest expense, excluding significant items (1) | $ | 774,117 | $ | 728,760 | $ | 45,357 | 6.2 | % |
Year ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Income tax expense | $ | 113,626 | $ | 98,496 | $ | 57,485 | |||||||||||
Effective tax rate | 20.6 | % | 19.6 | % | 16.7 | % | |||||||||||
Statutory federal tax rate | 21.0 | 21.0 | 21.0 |
December 31 | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,674 | $ | 3,493 | $ | (1,819) | (52.1) | % | |||||||||||||||
Securities | 7,362 | 6,889 | 473 | 6.9 | |||||||||||||||||||
Loans held for sale | 124 | 295 | (171) | (58.0) | |||||||||||||||||||
Loans and leases, net | 29,853 | 24,624 | 5,229 | 21.2 | |||||||||||||||||||
Goodwill and other intangibles | 2,566 | 2,304 | 262 | 11.4 | |||||||||||||||||||
Other assets | 2,146 | 1,908 | 238 | 12.5 | |||||||||||||||||||
Total Assets | $ | 43,725 | $ | 39,513 | $ | 4,212 | 10.7 | % | |||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||
Deposits | $ | 34,770 | $ | 31,726 | $ | 3,044 | 9.6 | % | |||||||||||||||
Borrowings | 2,465 | 2,218 | 247 | 11.1 | |||||||||||||||||||
Other liabilities | 837 | 419 | 418 | 99.8 | |||||||||||||||||||
Total Liabilities | 38,072 | 34,363 | 3,709 | 10.8 | |||||||||||||||||||
Stockholders’ Equity | 5,653 | 5,150 | 503 | 9.8 | |||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 43,725 | $ | 39,513 | $ | 4,212 | 10.7 | % |
December 31 | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Commercial real estate | $ | 11,526 | $ | 9,899 | $ | 1,627 | 16.4 | % | |||||||||||||||
Commercial and industrial | 7,131 | 5,977 | 1,154 | 19.3 | |||||||||||||||||||
Commercial leases | 519 | 495 | 24 | 4.8 | |||||||||||||||||||
Other | 114 | 94 | 20 | 21.3 | |||||||||||||||||||
Total commercial loans and leases | 19,290 | 16,465 | 2,825 | 17.2 | |||||||||||||||||||
Direct installment | 2,784 | 2,376 | 408 | 17.2 | |||||||||||||||||||
Residential mortgages | 5,297 | 3,654 | 1,643 | 45.0 | |||||||||||||||||||
Indirect installment | 1,553 | 1,227 | 326 | 26.6 | |||||||||||||||||||
Consumer lines of credit | 1,331 | 1,246 | 85 | 6.8 | |||||||||||||||||||
Total consumer loans | 10,965 | 8,503 | 2,462 | 29.0 | |||||||||||||||||||
Total loans and leases | $ | 30,255 | $ | 24,968 | $ | 5,287 | 21.2 | % |
(in millions) | Within 1 Year | 1-5 Years | Over 5 Years Through 15 years | After 15 Years | Total | ||||||||||||||||||||||||
Commercial real estate | $ | 1,424 | $ | 4,657 | $ | 4,845 | $ | 600 | $ | 11,526 | |||||||||||||||||||
Commercial and industrial | 1,541 | 4,581 | 864 | 145 | 7,131 | ||||||||||||||||||||||||
Commercial leases | 78 | 283 | 154 | 4 | 519 | ||||||||||||||||||||||||
Other | 8 | 96 | 9 | 1 | 114 | ||||||||||||||||||||||||
Total commercial loans and leases | 3,051 | 9,617 | 5,872 | 750 | 19,290 | ||||||||||||||||||||||||
Direct installment | 16 | 173 | 1,622 | 973 | 2,784 | ||||||||||||||||||||||||
Residential mortgages | 9 | 59 | 414 | 4,815 | 5,297 | ||||||||||||||||||||||||
Indirect installment | 22 | 675 | 856 | — | 1,553 | ||||||||||||||||||||||||
Consumer lines of credit | 146 | 35 | 262 | 888 | 1,331 | ||||||||||||||||||||||||
Total consumer loans | 193 | 942 | 3,154 | 6,676 | 10,965 | ||||||||||||||||||||||||
Total | $ | 3,244 | $ | 10,559 | $ | 9,026 | $ | 7,426 | $ | 30,255 | |||||||||||||||||||
Loans with maturities over one year: | |||||||||||||||||||||||||||||
Fixed | $ | 3,424 | $ | 4,453 | $ | 4,081 | $ | 11,958 | |||||||||||||||||||||
Floating | 7,135 | 4,573 | 3,345 | 15,053 |
December 31 | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Commercial real estate | $ | 39 | $ | 48 | $ | (9) | (18.8) | % | |||||||||||||||
Commercial and industrial | 44 | 15 | 29 | 193.3 | |||||||||||||||||||
Commercial leases | 1 | 1 | — | — | |||||||||||||||||||
Total commercial loans and leases | 84 | 64 | 20 | 31.3 | |||||||||||||||||||
Direct installment | 7 | 7 | — | — | |||||||||||||||||||
Residential mortgages | 14 | 10 | 4 | 40.0 | |||||||||||||||||||
Indirect installment | 1 | 2 | (1) | (50.0) | |||||||||||||||||||
Consumer lines of credit | 7 | 5 | 2 | 40.0 | |||||||||||||||||||
Total consumer loans | 29 | 24 | 5 | 20.8 | |||||||||||||||||||
Total non-performing loans and leases | $ | 113 | $ | 88 | $ | 25 | 28.4 | % |
December 31 | 2022 | 2021 | |||||||||
(dollars in millions) | |||||||||||
Non-accrual loans | $ | 113 | $ | 88 | |||||||
Total non-performing loans and leases | 113 | 88 | |||||||||
Other real estate owned | 6 | 8 | |||||||||
Total non-performing assets | $ | 119 | $ | 96 | |||||||
Non-performing loans / total loans and leases | 0.37 | % | 0.35 | % | |||||||
Non-performing loans + OREO / total loans and leases + OREO | 0.39 | 0.39 | |||||||||
Non-performing assets / total assets | 0.27 | 0.24 |
(in millions) | Accruing | Non-Accrual | Total | ||||||||||||||
December 31, 2022 | |||||||||||||||||
Commercial real estate | $ | 5 | $ | 15 | $ | 20 | |||||||||||
Commercial and industrial | — | 1 | 1 | ||||||||||||||
Total commercial loans | 5 | 16 | 21 | ||||||||||||||
Direct installment | 19 | 3 | 22 | ||||||||||||||
Residential mortgages | 33 | 4 | 37 | ||||||||||||||
Consumer lines of credit | 6 | 1 | 7 | ||||||||||||||
Total consumer loans | 58 | 8 | 66 | ||||||||||||||
Total TDRs | $ | 63 | $ | 24 | $ | 87 | |||||||||||
December 31, 2021 | |||||||||||||||||
Commercial real estate | $ | 6 | $ | 21 | $ | 27 | |||||||||||
Commercial and industrial | — | 1 | 1 | ||||||||||||||
Total commercial loans | 6 | 22 | 28 | ||||||||||||||
Direct installment | 21 | 4 | 25 | ||||||||||||||
Residential mortgages | 27 | 5 | 32 | ||||||||||||||
Consumer lines of credit | 6 | 1 | 7 | ||||||||||||||
Total consumer loans | 54 | 10 | 64 | ||||||||||||||
Total TDRs | $ | 60 | $ | 32 | $ | 92 |
December 31 | 2022 | 2021 | |||||||||
(dollars in millions) | |||||||||||
Total loans and leases 90 days or more past due | $ | 12 | $ | 6 | |||||||
As a percentage of total loans and leases | 0.04 | % | 0.02 | % |
December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
Gross interest income: | |||||||||||||||||
Per contractual terms | $ | 11 | $ | 9 | $ | 13 | |||||||||||
Recorded during the year | — | — | — |
Net Loan Charge-Offs (Recoveries) | Net Loan Charge-Offs to Average Loans | ||||||||||||||||||||||
Year Ended December 31 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Commercial real estate | $ | 8.4 | $ | 2.5 | 0.03 | % | 0.01 | % | |||||||||||||||
Commercial and industrial | 1.5 | 9.1 | 0.01 | 0.04 | |||||||||||||||||||
Commercial leases | 0.1 | (0.7) | — | — | |||||||||||||||||||
Other commercial | 2.4 | 1.0 | 0.01 | — | |||||||||||||||||||
Direct installment | (0.1) | 0.4 | — | — | |||||||||||||||||||
Residential mortgages | 0.1 | 0.4 | — | — | |||||||||||||||||||
Indirect installment | 3.9 | 0.9 | 0.01 | 0.01 | |||||||||||||||||||
Consumer lines of credit | (0.1) | 0.3 | — | — | |||||||||||||||||||
Total net loan charge-offs on loans and leases; net loan charge-offs/average loans | $ | 16.2 | $ | 13.9 | 0.06 | % | 0.06 | % | |||||||||||||||
Allowance for credit losses/total loans and leases | 1.33 | % | 1.38 | % | |||||||||||||||||||
Allowance for credit losses/non-performing loans | 354.26 | 391.90 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
Balance at beginning of period | $ | 19 | $ | 14 | $ | 3 | |||||||||||
Provision for unfunded loan commitments and letters of credit: | |||||||||||||||||
Commercial portfolio | 2 | 5 | 1 | ||||||||||||||
Consumer portfolio | — | — | — | ||||||||||||||
ASC 326 adoption impact: | |||||||||||||||||
Commercial portfolio | — | — | 8 | ||||||||||||||
Consumer portfolio | — | — | 2 | ||||||||||||||
Balance at end of period | $ | 21 | $ | 19 | $ | 14 |
December 31 | 2022 | 2021 | |||||||||||||||||||||
(dollars in millions) | Allowance | % of Loans | Allowance | % of Loans | |||||||||||||||||||
Commercial real estate | $ | 162 | 38 | % | $ | 157 | 40 | % | |||||||||||||||
Commercial and industrial | 102 | 24 | 87 | 24 | |||||||||||||||||||
Commercial leases | 14 | 2 | 15 | 2 | |||||||||||||||||||
Other | 4 | — | 3 | — | |||||||||||||||||||
Commercial loans and leases | 282 | 64 | 261 | 66 | |||||||||||||||||||
Direct installment | 36 | 9 | 26 | 9 | |||||||||||||||||||
Residential mortgages | 56 | 18 | 33 | 15 | |||||||||||||||||||
Indirect installment | 17 | 5 | 14 | 5 | |||||||||||||||||||
Consumer lines of credit | 11 | 4 | 10 | 5 | |||||||||||||||||||
Consumer loans | 120 | 36 | 83 | 34 | |||||||||||||||||||
Total | $ | 402 | 100 | % | $ | 344 | 100 | % |
(dollars in millions) | Amount | Weighted Average Yield | |||||||||
Obligations of U.S. Treasury: | |||||||||||
Maturing after five years but within ten years | $ | — | 5.25 | % | |||||||
Obligations of U.S. government agencies: | |||||||||||
Maturing after ten years | 1 | 5.25 | |||||||||
Obligations of U.S. government-sponsored entities: | |||||||||||
Maturing after one year but within five years | 52 | 5.03 | |||||||||
States of the U.S. and political subdivisions: | |||||||||||
Maturing within one year | 1 | 2.62 | |||||||||
Maturing after one year but within five years | 36 | 2.84 | |||||||||
Maturing after five years but within ten years | 170 | 3.13 | |||||||||
Maturing after ten years | 818 | 3.73 | |||||||||
Other debt securities: | |||||||||||
Maturing after five years but within ten years | 12 | 4.23 | |||||||||
Residential mortgage-backed securities: | |||||||||||
Agency mortgage-backed securities | 1,178 | 1.94 | |||||||||
Agency collateralized mortgage obligations | 953 | 1.87 | |||||||||
Commercial mortgage-backed securities | 866 | 3.53 | |||||||||
Total | $ | 4,087 | 2.72 | % |
December 31 | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Securities Available for Sale: | |||||||||||||||||||||||
U.S. Treasury | $ | 278 | $ | 205 | $ | 73 | 35.6 | % | |||||||||||||||
U.S. government agencies | 107 | 154 | (47) | (30.5) | |||||||||||||||||||
U.S. government-sponsored entities | 283 | 194 | 89 | 45.9 | |||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||
Agency mortgage-backed securities | 1,360 | 1,342 | 18 | 1.3 | |||||||||||||||||||
Agency collateralized mortgage obligations | 1,110 | 1,192 | (82) | (6.9) | |||||||||||||||||||
Commercial mortgage-backed securities | 430 | 294 | 136 | 46.3 | |||||||||||||||||||
States of the U.S. and political subdivisions | 33 | 33 | — | — | |||||||||||||||||||
Other debt securities | 21 | 2 | 19 | 950.0 | |||||||||||||||||||
Total debt securities available for sale | $ | 3,622 | $ | 3,416 | $ | 206 | 6.0 | % | |||||||||||||||
Debt Securities Held to Maturity: | |||||||||||||||||||||||
U.S. Treasury | $ | — | $ | 1 | $ | (1) | n/m | ||||||||||||||||
U.S. government agencies | 1 | 1 | — | — | |||||||||||||||||||
U.S. government-sponsored entities | 52 | — | 52 | n/m | |||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||
Agency mortgage-backed securities | 1,178 | 1,191 | (13) | (1.1) | |||||||||||||||||||
Agency collateralized mortgage obligations | 953 | 930 | 23 | 2.5 | |||||||||||||||||||
Commercial mortgage-backed securities | 866 | 323 | 543 | 168.1 | |||||||||||||||||||
States of the U.S. and political subdivisions | 1,025 | 1,017 | 8 | 0.8 | |||||||||||||||||||
Other debt securities | 12 | — | 12 | n/m | |||||||||||||||||||
Total debt securities held to maturity | $ | 4,087 | $ | 3,463 | $ | 624 | 18.0 | % | |||||||||||||||
n/m - not meaningful |
December 31 | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Non-interest-bearing demand | $ | 11,916 | $ | 10,789 | $ | 1,127 | 10.4 | % | |||||||||||||||
Interest-bearing demand | 15,100 | 14,409 | 691 | 4.8 | |||||||||||||||||||
Savings | 4,142 | 3,669 | 473 | 12.9 | |||||||||||||||||||
Certificates and other time deposits | 3,612 | 2,859 | 753 | 26.3 | |||||||||||||||||||
Total deposits | $ | 34,770 | $ | 31,726 | $ | 3,044 | 9.6 | % |
(in millions) | Insured | Uninsured | Total | ||||||||||||||
Three months or less | $ | 800 | $ | 261 | $ | 1,061 | |||||||||||
Three to six months | 441 | 339 | 780 | ||||||||||||||
Six to twelve months | 638 | 159 | 797 | ||||||||||||||
Over twelve months | 865 | 109 | 974 | ||||||||||||||
Total | $ | 2,744 | $ | 868 | $ | 3,612 |
At or for the Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(dollars in millions) | |||||||||||||||||
FHLB Advances (Short-term) | |||||||||||||||||
Balance at year-end | $ | 930 | $ | 1,030 | $ | 1,280 | |||||||||||
Maximum month-end balance | 930 | 1,280 | 2,055 | ||||||||||||||
Average balance during year | 933 | 1,113 | 1,699 | ||||||||||||||
Weighted average interest rates: | |||||||||||||||||
At year-end | 2.18 | % | 2.14 | % | 1.97 | % | |||||||||||
During the year | 2.18 | 2.13 | 1.83 | ||||||||||||||
(in millions) | Total | ||||
Deposits without a stated maturity | $ | 31,158 | |||
Certificates and other time deposits | 3,612 | ||||
Operating leases | 165 | ||||
Long-term borrowings | 1,093 | ||||
Total | $ | 36,028 |
(in millions) | Total | ||||
Commitments to extend credit | $ | 13,250 | |||
Standby letters of credit | 207 | ||||
Total | $ | 13,457 |
December 31 | 2022 | 2021 | Internal Limit | ||||||||||||||
Liquidity coverage ratio | 1.7 times | 2.4 times | > 1 time | ||||||||||||||
Months of cash on hand | 13.6 months | 16.9 months | > 12 months |
December 31 | 2022 | 2021 | |||||||||
(dollars in millions) | |||||||||||
Unused wholesale credit availability | $ | 15,669 | $ | 14,681 | |||||||
Unused wholesale credit availability as a % of FNBPA assets | 35.9 | % | 37.2 | % | |||||||
Salable unpledged government and agency securities | $ | 592 | $ | 836 | |||||||
Salable unpledged government and agency securities as a % of FNBPA assets | 1.4 | % | 2.1 | % | |||||||
Cash and salable unpledged government and agency securities as a % of FNBPA assets | 3.9 | % | 9.8 | % |
(dollars in millions) | Within 1 Month | 2-3 Months | 4-6 Months | 7-12 Months | Total 1 Year | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Loans | $ | 642 | $ | 1,344 | $ | 1,779 | $ | 3,022 | $ | 6,787 | |||||||||||||||||||
Investments | 1,341 | 162 | 233 | 466 | 2,202 | ||||||||||||||||||||||||
1,983 | 1,506 | 2,012 | 3,488 | 8,989 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Non-maturity deposits | 316 | 631 | 947 | 1,893 | 3,787 | ||||||||||||||||||||||||
Time deposits | 434 | 634 | 781 | 801 | 2,650 | ||||||||||||||||||||||||
Borrowings | 185 | 316 | 124 | 272 | 897 | ||||||||||||||||||||||||
935 | 1,581 | 1,852 | 2,966 | 7,334 | |||||||||||||||||||||||||
Period Gap (Assets - Liabilities) | $ | 1,048 | $ | (75) | $ | 160 | $ | 522 | $ | 1,655 | |||||||||||||||||||
Cumulative Gap | $ | 1,048 | $ | 973 | $ | 1,133 | $ | 1,655 | |||||||||||||||||||||
Cumulative Gap to Total Assets | 2.4 | % | 2.2 | % | 2.6 | % | 3.8 | % |
(dollars in millions) | Within 1 Month | 2-3 Months | 4-6 Months | 7-12 Months | Total 1 Year | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Loans | $ | 12,251 | $ | 932 | $ | 1,004 | $ | 1,832 | $ | 16,019 | |||||||||||||||||||
Investments | 1,351 | 167 | 327 | 454 | 2,299 | ||||||||||||||||||||||||
13,602 | 1,099 | 1,331 | 2,286 | 18,318 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Non-maturity deposits | 10,317 | — | — | — | 10,317 | ||||||||||||||||||||||||
Time deposits | 558 | 633 | 779 | 797 | 2,767 | ||||||||||||||||||||||||
Borrowings | 674 | 633 | 5 | 35 | 1,347 | ||||||||||||||||||||||||
11,549 | 1,266 | 784 | 832 | 14,431 | |||||||||||||||||||||||||
Off-balance sheet | (650) | 400 | (100) | (250) | (600) | ||||||||||||||||||||||||
Period Gap (assets - liabilities + off-balance sheet) | $ | 1,403 | $ | 233 | $ | 447 | $ | 1,204 | $ | 3,287 | |||||||||||||||||||
Cumulative Gap | $ | 1,403 | $ | 1,636 | $ | 2,083 | $ | 3,287 | |||||||||||||||||||||
Cumulative Gap to Assets | 3.6 | % | 4.2 | % | 5.3 | % | 8.4 | % |
December 31, | 2022 | 2021 | ALCO Limits | ||||||||||||||
Net interest income change (12 months): | |||||||||||||||||
+ 300 basis points | 5.5 | % | 21.6 | % | n/a | ||||||||||||
+ 200 basis points | 3.3 | 14.4 | (5.0) | % | |||||||||||||
+ 100 basis points | 1.1 | 7.0 | (5.0) | ||||||||||||||
– 100 basis points | 1.2 | (2.4) | (5.0) | ||||||||||||||
Economic value of equity: | |||||||||||||||||
+ 300 basis points | (6.8) | 6.6 | (25.0) | ||||||||||||||
+ 200 basis points | (4.0) | 5.8 | (15.0) | ||||||||||||||
+ 100 basis points | (1.4) | 3.8 | (10.0) | ||||||||||||||
– 100 basis points | (2.0) | (9.5) | (10.0) |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in thousands) | |||||||||||||||||
Net income available to common stockholders | $ | 431,068 | $ | 396,561 | $ | 277,965 | |||||||||||
Merger-related expense | 45,259 | 1,764 | — | ||||||||||||||
Tax benefit of merger-related expense | (9,504) | (370) | — | ||||||||||||||
COVID-19 expense | — | — | 11,276 | ||||||||||||||
Tax benefit of COVID-19 expense | — | — | (2,368) | ||||||||||||||
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) | ||||||||||||||
Provision expense related to acquisitions | 28,515 | — | — | ||||||||||||||
Tax benefit of provision expense related to acquisitions | (5,988) | — | — | ||||||||||||||
Branch consolidation costs | 7,016 | 2,644 | 18,745 | ||||||||||||||
Tax benefit of branch consolidation costs | (1,473) | (555) | (3,936) | ||||||||||||||
Service charge refunds | — | — | 3,780 | ||||||||||||||
Tax benefit of service charge refunds | — | — | (794) | ||||||||||||||
Operating net income available to common stockholders (non-GAAP) | $ | 494,893 | $ | 400,044 | $ | 313,985 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
Net income per diluted common share | $ | 1.22 | $ | 1.23 | $ | 0.85 | |||||||||||
Merger-related expense | 0.13 | 0.01 | — | ||||||||||||||
Tax benefit of merger-related expense | (0.03) | — | — | ||||||||||||||
COVID-19 expense | — | — | 0.03 | ||||||||||||||
Tax benefit of COVID-19 expense | — | — | (0.01) | ||||||||||||||
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) | ||||||||||||||
Provision expense related to acquisitions | 0.08 | — | — | ||||||||||||||
Tax benefit of provision expense related to acquisitions | (0.02) | — | — | ||||||||||||||
Branch consolidation costs | 0.02 | 0.01 | 0.06 | ||||||||||||||
Tax benefit of branch consolidation costs | — | — | (0.01) | ||||||||||||||
Service charge refunds | — | — | 0.01 | ||||||||||||||
Tax benefit of service charge refunds | — | — | — | ||||||||||||||
Operating earnings per diluted common share (non-GAAP) | $ | 1.40 | $ | 1.24 | $ | 0.96 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Net income available to common stockholders | $ | 431,068 | $ | 396,561 | $ | 277,965 | |||||||||||
Amortization of intangibles, net of tax | 10,956 | 9,573 | 10,556 | ||||||||||||||
Tangible net income available to common stockholders (non-GAAP) | $ | 442,024 | $ | 406,134 | $ | 288,521 | |||||||||||
Average total stockholders’ equity | $ | 5,475,843 | $ | 5,033,188 | $ | 4,904,300 | |||||||||||
Less: Average preferred stockholders’ equity | (106,882) | (106,882) | (106,882) | ||||||||||||||
Less: Average intangible assets (1) | (2,481,533) | (2,310,419) | (2,322,981) | ||||||||||||||
Average tangible common equity (non-GAAP) | $ | 2,887,428 | $ | 2,615,887 | $ | 2,474,437 | |||||||||||
Return on average tangible common equity (non-GAAP) | 15.31 | % | 15.53 | % | 11.66 | % |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Net income | $ | 439,109 | $ | 404,602 | $ | 286,006 | |||||||||||
Amortization of intangibles, net of tax | 10,956 | 9,573 | 10,556 | ||||||||||||||
Tangible net income (non-GAAP) | $ | 450,065 | $ | 414,175 | $ | 296,562 | |||||||||||
Average total assets | $ | 41,954,708 | $ | 38,603,092 | $ | 36,607,430 | |||||||||||
Less: Average intangible assets (1) | (2,481,533) | (2,310,419) | (2,322,981) | ||||||||||||||
Average tangible assets (non-GAAP) | $ | 39,473,175 | $ | 36,292,673 | $ | 34,284,449 | |||||||||||
Return on average tangible assets (non-GAAP) | 1.14 | % | 1.14 | % | 0.87 | % |
December 31 | 2022 | 2021 | |||||||||
(dollars in thousands, except per share data) | |||||||||||
Total stockholders’ equity | $ | 5,653,364 | $ | 5,149,864 | |||||||
Less: Preferred stockholders’ equity | (106,882) | (106,882) | |||||||||
Less: Intangible assets (1) | (2,566,029) | (2,304,410) | |||||||||
Tangible common equity (non-GAAP) | $ | 2,980,453 | $ | 2,738,572 | |||||||
Ending common shares outstanding | 360,470,110 | 318,933,492 | |||||||||
Tangible book value per common share (non-GAAP) | $ | 8.27 | $ | 8.59 |
December 31 | 2022 | 2021 | |||||||||
(dollars in thousands) | |||||||||||
Total stockholders' equity | $ | 5,653,364 | $ | 5,149,864 | |||||||
Less: Intangible assets (1) | (2,566,029) | (2,304,410) | |||||||||
Tangible equity (non-GAAP) | $ | 3,087,335 | $ | 2,845,454 | |||||||
Total assets | $ | 43,724,973 | $ | 39,513,318 | |||||||
Less: Intangible assets (1) | (2,566,029) | (2,304,410) | |||||||||
Tangible assets (non-GAAP) | $ | 41,158,944 | $ | 37,208,908 | |||||||
Tangible equity / tangible assets (period-end) (non-GAAP) | 7.50 | % | 7.65 | % |
December 31 | 2022 | 2021 | |||||||||
(dollars in thousands) | |||||||||||
Total stockholders' equity | $ | 5,653,364 | $ | 5,149,864 | |||||||
Less: Preferred stockholders' equity | (106,882) | (106,882) | |||||||||
Less: Intangible assets (1) | (2,566,029) | (2,304,410) | |||||||||
Tangible common equity (non-GAAP) | $ | 2,980,453 | $ | 2,738,572 | |||||||
Total assets | $ | 43,724,973 | $ | 39,513,318 | |||||||
Less: Intangible assets (1) | (2,566,029) | (2,304,410) | |||||||||
Tangible assets (non-GAAP) | $ | 41,158,944 | $ | 37,208,908 | |||||||
Tangible common equity / tangible assets (period-end) (non-GAAP) | 7.24 | % | 7.36 | % |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Non-interest expense | $ | 826,392 | $ | 733,168 | $ | 750,349 | |||||||||||
Less: Amortization of intangibles | (13,868) | (12,117) | (13,362) | ||||||||||||||
Less: OREO expense | (1,692) | (2,598) | (4,434) | ||||||||||||||
Less: Merger-related expense | (45,259) | (1,764) | — | ||||||||||||||
Less: COVID-19 expense | — | — | (11,276) | ||||||||||||||
Less: Branch consolidation costs | (7,016) | (2,644) | (18,745) | ||||||||||||||
Less: Tax credit-related project impairment | — | — | (4,101) | ||||||||||||||
Adjusted non-interest expense | $ | 758,557 | $ | 714,045 | $ | 698,431 | |||||||||||
Net interest income | $ | 1,119,780 | $ | 906,476 | $ | 922,082 | |||||||||||
Taxable equivalent adjustment | 11,288 | 10,948 | 12,470 | ||||||||||||||
Non-interest income | 323,553 | 330,419 | 294,556 | ||||||||||||||
Less: Net securities gains | (48) | (193) | (282) | ||||||||||||||
Less: Gain on sale of Visa class B stock | — | — | (13,818) | ||||||||||||||
Add: Loss on FHLB debt extinguishment and related hedge terminations | — | — | 25,611 | ||||||||||||||
Add: Service charge refunds | — | — | 3,780 | ||||||||||||||
Adjusted net interest income (FTE) + non-interest income | $ | 1,454,573 | $ | 1,247,650 | $ | 1,244,399 | |||||||||||
Efficiency ratio (FTE) (non-GAAP) | 52.15 | % | 57.23 | % | 56.13 | % |
/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 |
Allowance for Credit Losses (ACL) | ||||||||
Description of the Matter | At December 31, 2022, the Company’s net loan and lease portfolio was $30.3 billion with an associated ACL of $402 million. As discussed in Note 1 to the consolidated financial statements, the ACL is based on management’s evaluation of the 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 reserve captures the following factors, among others: regulatory, legal and technological environments; competition; forecast uncertainty; and events such as natural disasters. The qualitative factors are necessary for management to capture risks not addressed by the quantitative models or reflected in the data used by the quantitative models. In many cases, qualitative factors are intended to capture the Company’s expert credit judgment and as such are especially challenging to audit. | |||||||
How We Addressed the Matter in Our Audit | We 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 support for 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. With the help of our specialists, we evaluated the conceptual soundness of the models used to develop the allowance for credit losses, including the appropriateness of the qualitative framework. Regarding the measurement of the qualitative factors, we evaluated the relevance and reliability of the internal and external data used to inform management’s estimate, considered the existence of new or contrary information and evaluated the consistency of management’s application of their qualitative framework. 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, peer data and other relevant information. |
December 31 | |||||||||||
2022 | 2021 | ||||||||||
Assets | |||||||||||
Cash and due from banks | $ | 443 | $ | 337 | |||||||
Interest-bearing deposits with banks | 1,231 | 3,156 | |||||||||
Cash and Cash Equivalents | 1,674 | 3,493 | |||||||||
Debt securities available for sale (amortized cost of $3,622 and $3,416; allowance for credit losses of $0 and $0) | 3,275 | 3,426 | |||||||||
Debt securities held to maturity (fair value of $3,687 and $3,506; allowance for credit losses of $0 and $0) | 4,087 | 3,463 | |||||||||
Loans held for sale (includes $91 and $269 measured at fair value) (1) | 124 | 295 | |||||||||
Loans and leases, net of unearned income of $69 and $36 (includes $12 and $0 measured at fair value) (1) | 30,255 | 24,968 | |||||||||
Allowance for credit losses on loans and leases | (402) | (344) | |||||||||
Net Loans and Leases | 29,853 | 24,624 | |||||||||
Premises and equipment, net | 432 | 345 | |||||||||
Goodwill | 2,477 | 2,262 | |||||||||
Core deposit and other intangible assets, net | 89 | 42 | |||||||||
Bank owned life insurance | 653 | 546 | |||||||||
Other assets | 1,061 | 1,017 | |||||||||
Total Assets | $ | 43,725 | $ | 39,513 | |||||||
Liabilities | |||||||||||
Deposits: | |||||||||||
Non-interest-bearing demand | $ | 11,916 | $ | 10,789 | |||||||
Interest-bearing demand | 15,100 | 14,409 | |||||||||
Savings | 4,142 | 3,669 | |||||||||
Certificates and other time deposits | 3,612 | 2,859 | |||||||||
Total Deposits | 34,770 | 31,726 | |||||||||
Short-term borrowings | 1,372 | 1,536 | |||||||||
Long-term borrowings | 1,093 | 682 | |||||||||
Other liabilities | 837 | 419 | |||||||||
Total Liabilities | 38,072 | 34,363 | |||||||||
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 – 374,907,245 and 329,464,669 shares | 4 | 3 | |||||||||
Additional paid-in capital | 4,696 | 4,109 | |||||||||
Retained earnings | 1,370 | 1,110 | |||||||||
Accumulated other comprehensive loss | (357) | (62) | |||||||||
Treasury stock – 14,437,135 and 10,531,177 shares at cost | (167) | (117) | |||||||||
Total Stockholders’ Equity | 5,653 | 5,150 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 43,725 | $ | 39,513 |
Year Ended December 31 | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Interest Income | |||||||||||||||||
Loans and leases, including fees | $ | 1,117 | $ | 886 | $ | 990 | |||||||||||
Securities: | |||||||||||||||||
Taxable | 117 | 86 | 106 | ||||||||||||||
Tax-exempt | 27 | 29 | 32 | ||||||||||||||
Other | 24 | 4 | 2 | ||||||||||||||
Total Interest Income | 1,285 | 1,005 | 1,130 | ||||||||||||||
Interest Expense | |||||||||||||||||
Deposits | 108 | 47 | 133 | ||||||||||||||
Short-term borrowings | 25 | 27 | 38 | ||||||||||||||
Long-term borrowings | 32 | 24 | 37 | ||||||||||||||
Total Interest Expense | 165 | 98 | 208 | ||||||||||||||
Net Interest Income | 1,120 | 907 | 922 | ||||||||||||||
Provision for credit losses | 64 | 1 | 123 | ||||||||||||||
Net Interest Income After Provision for Credit Losses | 1,056 | 906 | 799 | ||||||||||||||
Non-Interest Income | |||||||||||||||||
Service charges | 137 | 122 | 108 | ||||||||||||||
Trust services | 39 | 37 | 31 | ||||||||||||||
Insurance commissions and fees | 24 | 25 | 24 | ||||||||||||||
Securities commissions and fees | 24 | 22 | 17 | ||||||||||||||
Capital markets income | 35 | 37 | 39 | ||||||||||||||
Mortgage banking operations | 21 | 37 | 50 | ||||||||||||||
Dividends on non-marketable equity securities | 12 | 9 | 14 | ||||||||||||||
Bank owned life insurance | 12 | 15 | 14 | ||||||||||||||
Loss on debt extinguishment | — | — | (17) | ||||||||||||||
Other | 19 | 26 | 14 | ||||||||||||||
Total Non-Interest Income | 323 | 330 | 294 | ||||||||||||||
Non-Interest Expense | |||||||||||||||||
Salaries and employee benefits | 426 | 418 | 406 | ||||||||||||||
Net occupancy | 68 | 58 | 71 | ||||||||||||||
Equipment | 76 | 70 | 66 | ||||||||||||||
Amortization of intangibles | 14 | 12 | 13 | ||||||||||||||
Outside services | 73 | 71 | 69 | ||||||||||||||
Marketing | 16 | 14 | 13 | ||||||||||||||
FDIC insurance | 20 | 18 | 20 | ||||||||||||||
Bank shares and franchise taxes | 14 | 13 | 14 | ||||||||||||||
Merger-related | 45 | 2 | — | ||||||||||||||
Other | 74 | 57 | 78 | ||||||||||||||
Total Non-Interest Expense | 826 | 733 | 750 | ||||||||||||||
Income Before Income Taxes | 553 | 503 | 343 | ||||||||||||||
Income taxes | 114 | 98 | 57 | ||||||||||||||
Net Income | 439 | 405 | 286 | ||||||||||||||
Preferred stock dividends | 8 | 8 | 8 | ||||||||||||||
Net Income Available to Common Stockholders | $ | 431 | $ | 397 | $ | 278 | |||||||||||
Earnings per Common Share | |||||||||||||||||
Basic | $ | 1.23 | $ | 1.24 | $ | 0.86 | |||||||||||
Diluted | $ | 1.22 | $ | 1.23 | $ | 0.85 |
Year Ended December 31 | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net income | $ | 439 | $ | 405 | $ | 286 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Securities available for sale: | |||||||||||||||||
Unrealized (losses) gains arising during the period, net of tax (benefit) expense of $(79), $(16) and $15 | (277) | (57) | 54 | ||||||||||||||
Derivative instruments: | |||||||||||||||||
Unrealized (losses) gains arising during the period, net of tax (benefit) expense of $(9), $1 and $(11) | (30) | 4 | (40) | ||||||||||||||
Reclassification adjustment for gains (losses) included in net income, net of tax expense (benefit) of $2, $4 and $3 | 8 | 14 | 18 | ||||||||||||||
Pension and postretirement benefit obligations: | |||||||||||||||||
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $(1), $(5) and $2 | 4 | 16 | (6) | ||||||||||||||
Other Comprehensive Income (Loss) | (295) | (23) | 26 | ||||||||||||||
Comprehensive Income (Loss) | $ | 144 | $ | 382 | $ | 312 |
Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | 107 | $ | 3 | $ | 4,067 | $ | 798 | $ | (65) | $ | (27) | $ | 4,883 | |||||||||||||||||||||||||||
Comprehensive income (loss) | 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 | ||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 405 | (23) | 382 | ||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Preferred stock: $72.52/share | (8) | (8) | |||||||||||||||||||||||||||||||||||||||
Common stock: $0.48/share | (156) | (156) | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | 3 | (6) | (3) | |||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (43) | (43) | |||||||||||||||||||||||||||||||||||||||
Restricted stock compensation | 19 | 19 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 107 | 3 | 4,109 | 1,110 | (62) | (117) | 5,150 | ||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 439 | (295) | 144 | ||||||||||||||||||||||||||||||||||||||
Dividends declared: | |||||||||||||||||||||||||||||||||||||||||
Preferred stock: $72.52/share | (8) | (8) | |||||||||||||||||||||||||||||||||||||||
Common stock: $0.48/share | (171) | (171) | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | 1 | (7) | (6) | |||||||||||||||||||||||||||||||||||||
Issuance of common stock – acquisitions | 1 | 569 | 570 | ||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | (43) | (43) | |||||||||||||||||||||||||||||||||||||||
Restricted stock compensation | 17 | 17 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | 107 | $ | 4 | $ | 4,696 | $ | 1,370 | $ | (357) | $ | (167) | $ | 5,653 |
Year Ended December 31 | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Operating Activities | |||||||||||||||||
Net income | $ | 439 | $ | 405 | $ | 286 | |||||||||||
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: | |||||||||||||||||
Depreciation, amortization and accretion | 73 | 10 | (3) | ||||||||||||||
Provision for credit losses | 64 | 1 | 123 | ||||||||||||||
Deferred tax expense (benefit) | 11 | 15 | (18) | ||||||||||||||
Loans originated for sale | (1,042) | (2,034) | (1,886) | ||||||||||||||
Loans sold | 1,239 | 1,946 | 1,830 | ||||||||||||||
Net gain on sale of loans | (38) | (53) | (47) | ||||||||||||||
Net change in: | |||||||||||||||||
Interest receivable | (42) | 14 | 19 | ||||||||||||||
Interest payable | 21 | (3) | (8) | ||||||||||||||
Bank owned life insurance, excluding purchases | (6) | 3 | (6) | ||||||||||||||
Other, net | 499 | 226 | (177) | ||||||||||||||
Net cash flows provided by (used in) operating activities | 1,218 | 530 | 113 | ||||||||||||||
Investing Activities | |||||||||||||||||
Net change in loans and leases, excluding sales and transfers | (2,831) | 558 | (2,604) | ||||||||||||||
Debt securities available for sale: | |||||||||||||||||
Purchases | (880) | (1,683) | (2,360) | ||||||||||||||
Sales | 459 | — | — | ||||||||||||||
Maturities/payments | 735 | 1,634 | 2,244 | ||||||||||||||
Debt securities held to maturity: | |||||||||||||||||
Purchases | (1,200) | (1,448) | (301) | ||||||||||||||
Maturities/payments | 569 | 844 | 703 | ||||||||||||||
Increase in premises and equipment | (95) | (58) | (41) | ||||||||||||||
Net cash received in business acquisitions | 188 | — | — | ||||||||||||||
Loans sold, not originated for sale | — | — | 537 | ||||||||||||||
Net cash flows provided by (used in) investing activities | (3,055) | (153) | (1,822) | ||||||||||||||
Financing Activities | |||||||||||||||||
Net change in: | |||||||||||||||||
Demand (non-interest-bearing and interest-bearing) and savings accounts | (108) | 3,406 | 5,402 | ||||||||||||||
Time deposits | 366 | (802) | (1,065) | ||||||||||||||
Short-term borrowings | (179) | (267) | (1,412) | ||||||||||||||
Proceeds from issuance of long-term borrowings | 381 | 25 | 328 | ||||||||||||||
Repayment of long-term borrowings | (231) | (438) | (574) | ||||||||||||||
Repurchases of common stock | (43) | (43) | (38) | ||||||||||||||
Cash dividends paid: | |||||||||||||||||
Preferred stock | (8) | (8) | (8) | ||||||||||||||
Common stock | (171) | (156) | (157) | ||||||||||||||
Other, net | 11 | 16 | 17 | ||||||||||||||
Net cash flows provided by (used in) financing activities | 18 | 1,733 | 2,493 | ||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (1,819) | 2,110 | 784 | ||||||||||||||
Cash and cash equivalents at beginning of year | 3,493 | 1,383 | 599 | ||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 1,674 | $ | 3,493 | $ | 1,383 |
Standard | Description | Financial Statements Impact | ||||||||||||
Troubled Debt Restructuring and Charge-offs | ||||||||||||||
ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures | This Update eliminates the recognition and measurement guidance on TDRs for creditors that have adopted ASC 326 and requires enhanced disclosures about loan modifications for borrowers experiencing financial difficulty. This Update also requires public business entities to present current-period gross write-offs by year of origination in their vintage disclosures. | This Update is to be applied using a prospective method. For the transition method related to TDRs, an entity has the option to apply a modified retrospective transition method. Early adoption of this Update is permitted. An entity is allowed to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. We adopted this Update on January 1, 2023. Adoption of this Update is not expected to have a material impact on our consolidated financial statements. |
(in millions) | Howard | Union | |||||||||
Fair value of consideration paid | $ | 443 | $ | 126 | |||||||
Fair value of identifiable assets acquired: | |||||||||||
Cash and cash equivalents | 75 | 113 | |||||||||
Securities | 321 | 212 | |||||||||
Loans | 1,780 | 652 | |||||||||
Core deposit and other intangible assets | 19 | 41 | |||||||||
Fixed and other assets | 156 | 60 | |||||||||
Total identifiable assets acquired | 2,351 | 1,078 | |||||||||
Fair value of liabilities assumed: | |||||||||||
Deposits | 1,831 | 956 | |||||||||
Borrowings | 247 | 30 | |||||||||
Other liabilities | 7 | 3 | |||||||||
Total liabilities assumed | 2,085 | 989 | |||||||||
Fair value of net identifiable assets acquired | 266 | 89 | |||||||||
Goodwill recognized | $ | 177 | $ | 37 |
(in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Debt Securities AFS: | |||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
U.S. Treasury | $ | 278 | $ | — | $ | (21) | $ | 257 | |||||||||||||||
U.S. government agencies | 107 | 1 | — | 108 | |||||||||||||||||||
U.S. government-sponsored entities | 283 | — | (21) | 262 | |||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||
Agency mortgage-backed securities | 1,360 | — | (128) | 1,232 | |||||||||||||||||||
Agency collateralized mortgage obligations | 1,110 | — | (138) | 972 | |||||||||||||||||||
Commercial mortgage-backed securities | 430 | — | (35) | 395 | |||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | 33 | — | (4) | 29 | |||||||||||||||||||
Other debt securities | 21 | — | (1) | 20 | |||||||||||||||||||
Total debt securities AFS | $ | 3,622 | $ | 1 | $ | (348) | $ | 3,275 |
(in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Debt Securities AFS: | |||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
U.S. Treasury | $ | 205 | $ | — | $ | (1) | $ | 204 | |||||||||||||||
U.S. government agencies | 154 | 1 | — | 155 | |||||||||||||||||||
U.S. government-sponsored entities | 194 | — | (2) | 192 | |||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||
Agency mortgage-backed securities | 1,342 | 19 | (4) | 1,357 | |||||||||||||||||||
Agency collateralized mortgage obligations | 1,192 | 11 | (17) | 1,186 | |||||||||||||||||||
Commercial mortgage-backed securities | 294 | 5 | (2) | 297 | |||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | 33 | — | — | 33 | |||||||||||||||||||
Other debt securities | 2 | — | — | 2 | |||||||||||||||||||
Total debt securities AFS | $ | 3,416 | $ | 36 | $ | (26) | $ | 3,426 |
(in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Debt Securities HTM: | |||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
U.S. government agencies | $ | 1 | $ | — | $ | — | $ | 1 | |||||||||||||||
U.S. government-sponsored entities | 52 | — | — | 52 | |||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||
Agency mortgage-backed securities | 1,178 | — | (125) | 1,053 | |||||||||||||||||||
Agency collateralized mortgage obligations | 953 | — | (120) | 833 | |||||||||||||||||||
Commercial mortgage-backed securities | 866 | 2 | (50) | 818 | |||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | 1,025 | 1 | (107) | 919 | |||||||||||||||||||
Other debt securities | 12 | — | (1) | 11 | |||||||||||||||||||
Total debt securities HTM | $ | 4,087 | $ | 3 | $ | (403) | $ | 3,687 |
(in millions) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Debt Securities HTM: | |||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
U.S. Treasury | $ | 1 | $ | — | $ | — | $ | 1 | |||||||||||||||
U.S. government agencies | 1 | — | — | 1 | |||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||
Agency mortgage-backed securities | 1,191 | 15 | (5) | 1,201 | |||||||||||||||||||
Agency collateralized mortgage obligations | 930 | 5 | (12) | 923 | |||||||||||||||||||
Commercial mortgage-backed securities | 323 | 3 | (2) | 324 | |||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | 1,017 | 39 | — | 1,056 | |||||||||||||||||||
Total debt securities HTM | $ | 3,463 | $ | 62 | $ | (19) | $ | 3,506 |
Available for Sale | Held to Maturity | ||||||||||||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
Due in one year or less | $ | 13 | $ | 13 | $ | 1 | $ | 1 | |||||||||||||||
Due after one year but within five years | 579 | 535 | 88 | 88 | |||||||||||||||||||
Due after five years but within ten years | 88 | 87 | 183 | 170 | |||||||||||||||||||
Due after ten years | 42 | 41 | 818 | 724 | |||||||||||||||||||
722 | 676 | 1,090 | 983 | ||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||
Agency mortgage-backed securities | 1,360 | 1,232 | 1,178 | 1,053 | |||||||||||||||||||
Agency collateralized mortgage obligations | 1,110 | 972 | 953 | 833 | |||||||||||||||||||
Commercial mortgage-backed securities | 430 | 395 | 866 | 818 | |||||||||||||||||||
Total debt securities | $ | 3,622 | $ | 3,275 | $ | 4,087 | $ | 3,687 |
December 31 | 2022 | 2021 | |||||||||
(dollars in millions) | |||||||||||
Securities pledged (carrying value): | |||||||||||
To secure public deposits, trust deposits and for other purposes as required by law | $ | 6,403 | $ | 5,660 | |||||||
As collateral for short-term borrowings | 348 | 392 | |||||||||
Securities pledged as a percent of total securities | 91.7 | % | 87.9 | % |
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, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury | 3 | $ | 120 | $ | (7) | 3 | $ | 137 | $ | (14) | 6 | $ | 257 | $ | (21) | ||||||||||||||||||||||||||||||||||||||
U.S. government agencies | 6 | 46 | — | 8 | 4 | — | 14 | 50 | — | ||||||||||||||||||||||||||||||||||||||||||||
U.S. government-sponsored entities | 9 | 150 | (8) | 4 | 112 | (13) | 13 | 262 | (21) | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency mortgage-backed securities | 104 | 773 | (58) | 13 | 455 | (70) | 117 | 1,228 | (128) | ||||||||||||||||||||||||||||||||||||||||||||
Agency collateralized mortgage obligations | 49 | 455 | (42) | 23 | 517 | (96) | 72 | 972 | (138) | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 16 | 302 | (21) | 5 | 94 | (14) | 21 | 396 | (35) | ||||||||||||||||||||||||||||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | 4 | 7 | (1) | 10 | 22 | (3) | 14 | 29 | (4) | ||||||||||||||||||||||||||||||||||||||||||||
Other debt securities | 7 | 15 | (1) | 1 | 2 | — | 8 | 17 | (1) | ||||||||||||||||||||||||||||||||||||||||||||
Total | 198 | $ | 1,868 | $ | (138) | 67 | $ | 1,343 | $ | (210) | 265 | $ | 3,211 | $ | (348) | ||||||||||||||||||||||||||||||||||||||
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, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury | 3 | $ | 151 | $ | (1) | — | $ | — | $ | — | 3 | $ | 151 | $ | (1) | ||||||||||||||||||||||||||||||||||||||
U.S. government agencies | 3 | 22 | — | 9 | 8 | — | 12 | 30 | — | ||||||||||||||||||||||||||||||||||||||||||||
U.S. government-sponsored entities | 3 | 99 | (1) | 1 | 24 | (1) | 4 | 123 | (2) | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency mortgage-backed securities | 13 | 599 | (4) | — | — | — | 13 | 599 | (4) | ||||||||||||||||||||||||||||||||||||||||||||
Agency collateralized mortgage obligations | 23 | 659 | (15) | 3 | 68 | (2) | 26 | 727 | (17) | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 5 | 125 | (2) | — | — | — | 5 | 125 | (2) | ||||||||||||||||||||||||||||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | 10 | 24 | — | — | — | — | 10 | 24 | — | ||||||||||||||||||||||||||||||||||||||||||||
Other debt securities | — | — | — | 1 | 2 | — | 1 | 2 | — | ||||||||||||||||||||||||||||||||||||||||||||
Total | 60 | $ | 1,679 | $ | (23) | 14 | $ | 102 | $ | (3) | 74 | $ | 1,781 | $ | (26) |
December 31 | 2022 | 2021 | |||||||||
(in millions) | |||||||||||
Federal Home Loan Bank stock | $ | 127 | $ | 122 | |||||||
Federal Reserve Bank stock | 140 | 123 | |||||||||
Other non-marketable equity securities | 1 | — | |||||||||
Total non-marketable equity securities | $ | 268 | $ | 245 |
December 31 | 2022 | 2021 | |||||||||
(in millions) | |||||||||||
Commercial real estate | $ | 11,526 | $ | 9,899 | |||||||
Commercial and industrial | 7,131 | 5,977 | |||||||||
Commercial leases | 519 | 495 | |||||||||
Other | 114 | 94 | |||||||||
Total commercial loans and leases | 19,290 | 16,465 | |||||||||
Direct installment | 2,784 | 2,376 | |||||||||
Residential mortgages | 5,297 | 3,654 | |||||||||
Indirect installment | 1,553 | 1,227 | |||||||||
Consumer lines of credit | 1,331 | 1,246 | |||||||||
Total consumer loans | 10,965 | 8,503 | |||||||||
Total loans and leases, net of unearned income | $ | 30,255 | $ | 24,968 |
December 31 | 2022 | 2021 | |||||||||
(dollars in millions) | |||||||||||
Commercial real estate: | |||||||||||
Percent owner-occupied | 30.2 | % | 28.8 | % | |||||||
Percent non-owner-occupied | 69.8 | 71.2 |
(in millions) | |||||
Balance at beginning of period | $ | 6 | |||
New loans | 11 | ||||
Repayments | (4) | ||||
Balance at end of period | $ | 13 |
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, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
COMMERCIAL | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 1,967 | $ | 2,348 | $ | 1,678 | $ | 1,283 | $ | 700 | $ | 2,447 | $ | 258 | $ | 10,681 | |||||||||||||||||||||||||||||||
Special Mention | 43 | 35 | 67 | 74 | 104 | 208 | 5 | 536 | |||||||||||||||||||||||||||||||||||||||
Substandard | 3 | 7 | 20 | 47 | 45 | 167 | 20 | 309 | |||||||||||||||||||||||||||||||||||||||
Total commercial real estate | 2,013 | 2,390 | 1,765 | 1,404 | 849 | 2,822 | 283 | 11,526 | |||||||||||||||||||||||||||||||||||||||
Commercial and Industrial: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | 1,635 | 1,194 | 760 | 533 | 289 | 453 | 1,856 | 6,720 | |||||||||||||||||||||||||||||||||||||||
Special Mention | 15 | 43 | 16 | 27 | 48 | 48 | 54 | 251 | |||||||||||||||||||||||||||||||||||||||
Substandard | 5 | 12 | 11 | 8 | 38 | 34 | 52 | 160 | |||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 1,655 | 1,249 | 787 | 568 | 375 | 535 | 1,962 | 7,131 | |||||||||||||||||||||||||||||||||||||||
Commercial Leases: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | 187 | 121 | 69 | 59 | 36 | 27 | — | 499 | |||||||||||||||||||||||||||||||||||||||
Special Mention | — | 1 | — | 1 | — | — | — | 2 | |||||||||||||||||||||||||||||||||||||||
Substandard | 2 | 5 | 8 | 1 | 1 | 1 | — | 18 | |||||||||||||||||||||||||||||||||||||||
Total commercial leases | 189 | 127 | 77 | 61 | 37 | 28 | — | 519 | |||||||||||||||||||||||||||||||||||||||
Other Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | 58 | — | — | — | — | 12 | 44 | 114 | |||||||||||||||||||||||||||||||||||||||
Total other commercial | 58 | — | — | — | — | 12 | 44 | 114 | |||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases | 3,915 | 3,766 | 2,629 | 2,033 | 1,261 | 3,397 | 2,289 | 19,290 | |||||||||||||||||||||||||||||||||||||||
CONSUMER | |||||||||||||||||||||||||||||||||||||||||||||||
Direct Installment: | |||||||||||||||||||||||||||||||||||||||||||||||
Current | 801 | 887 | 453 | 163 | 91 | 374 | — | 2,769 | |||||||||||||||||||||||||||||||||||||||
Past due | — | 1 | 1 | 1 | 1 | 11 | — | 15 | |||||||||||||||||||||||||||||||||||||||
Total direct installment | 801 | 888 | 454 | 164 | 92 | 385 | — | 2,784 | |||||||||||||||||||||||||||||||||||||||
Residential Mortgages: | |||||||||||||||||||||||||||||||||||||||||||||||
Current | 1,464 | 1,587 | 871 | 378 | 128 | 819 | 2 | 5,249 | |||||||||||||||||||||||||||||||||||||||
Past due | 2 | 3 | 3 | 2 | 5 | 33 | — | 48 | |||||||||||||||||||||||||||||||||||||||
Total residential mortgages | 1,466 | 1,590 | 874 | 380 | 133 | 852 | 2 | 5,297 | |||||||||||||||||||||||||||||||||||||||
Indirect Installment: | |||||||||||||||||||||||||||||||||||||||||||||||
Current | 800 | 357 | 166 | 88 | 80 | 40 | — | 1,531 | |||||||||||||||||||||||||||||||||||||||
Past due | 5 | 11 | 3 | 1 | 1 | 1 | — | 22 | |||||||||||||||||||||||||||||||||||||||
Total indirect installment | 805 | 368 | 169 | 89 | 81 | 41 | — | 1,553 | |||||||||||||||||||||||||||||||||||||||
Consumer Lines of Credit: | |||||||||||||||||||||||||||||||||||||||||||||||
Current | 74 | 17 | 1 | 3 | 4 | 126 | 1,086 | 1,311 | |||||||||||||||||||||||||||||||||||||||
Past due | — | 1 | 1 | — | — | 15 | 3 | 20 | |||||||||||||||||||||||||||||||||||||||
Total consumer lines of credit | 74 | 18 | 2 | 3 | 4 | 141 | 1,089 | 1,331 | |||||||||||||||||||||||||||||||||||||||
Total consumer loans | 3,146 | 2,864 | 1,499 | 636 | 310 | 1,419 | 1,091 | 10,965 | |||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 7,061 | $ | 6,630 | $ | 4,128 | $ | 2,669 | $ | 1,571 | $ | 4,816 | $ | 3,380 | $ | 30,255 |
December 31, 2021 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
COMMERCIAL | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 1,878 | $ | 1,782 | $ | 1,503 | $ | 830 | $ | 743 | $ | 2,171 | $ | 183 | $ | 9,090 | |||||||||||||||||||||||||||||||
Special Mention | 15 | 21 | 89 | 105 | 107 | 175 | 9 | 521 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | 15 | 28 | 45 | 45 | 152 | 3 | 288 | |||||||||||||||||||||||||||||||||||||||
Total commercial real estate | 1,893 | 1,818 | 1,620 | 980 | 895 | 2,498 | 195 | 9,899 | |||||||||||||||||||||||||||||||||||||||
Commercial and Industrial: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | 1,663 | 833 | 731 | 386 | 184 | 296 | 1,509 | 5,602 | |||||||||||||||||||||||||||||||||||||||
Special Mention | 8 | 12 | 18 | 7 | 37 | 42 | 52 | 176 | |||||||||||||||||||||||||||||||||||||||
Substandard | 1 | 4 | 14 | 57 | 42 | 17 | 64 | 199 | |||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 1,672 | 849 | 763 | 450 | 263 | 355 | 1,625 | 5,977 | |||||||||||||||||||||||||||||||||||||||
Commercial Leases: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | 182 | 109 | 98 | 53 | 39 | 1 | — | 482 | |||||||||||||||||||||||||||||||||||||||
Special Mention | — | 1 | — | 2 | 3 | 1 | — | 7 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | 2 | 3 | 1 | — | — | — | 6 | |||||||||||||||||||||||||||||||||||||||
Total commercial leases | 182 | 112 | 101 | 56 | 42 | 2 | — | 495 | |||||||||||||||||||||||||||||||||||||||
Other Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | 39 | — | — | — | — | 3 | 52 | 94 | |||||||||||||||||||||||||||||||||||||||
Total other commercial | 39 | — | — | — | — | 3 | 52 | 94 | |||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases | 3,786 | 2,779 | 2,484 | 1,486 | 1,200 | 2,858 | 1,872 | 16,465 | |||||||||||||||||||||||||||||||||||||||
CONSUMER | |||||||||||||||||||||||||||||||||||||||||||||||
Direct Installment: | |||||||||||||||||||||||||||||||||||||||||||||||
Current | 978 | 538 | 215 | 125 | 96 | 412 | — | 2,364 | |||||||||||||||||||||||||||||||||||||||
Past due | — | — | 1 | 1 | — | 10 | — | 12 | |||||||||||||||||||||||||||||||||||||||
Total direct installment | 978 | 538 | 216 | 126 | 96 | 422 | — | 2,376 | |||||||||||||||||||||||||||||||||||||||
Residential Mortgages: | |||||||||||||||||||||||||||||||||||||||||||||||
Current | 1,280 | 932 | 392 | 152 | 212 | 652 | — | 3,620 | |||||||||||||||||||||||||||||||||||||||
Past due | 1 | 1 | 1 | 3 | 3 | 25 | — | 34 | |||||||||||||||||||||||||||||||||||||||
Total residential mortgages | 1,281 | 933 | 393 | 155 | 215 | 677 | — | 3,654 | |||||||||||||||||||||||||||||||||||||||
Indirect Installment: | |||||||||||||||||||||||||||||||||||||||||||||||
Current | 516 | 262 | 157 | 178 | 64 | 35 | — | 1,212 | |||||||||||||||||||||||||||||||||||||||
Past due | 6 | 3 | 2 | 2 | 1 | 1 | — | 15 | |||||||||||||||||||||||||||||||||||||||
Total indirect installment | 522 | 265 | 159 | 180 | 65 | 36 | — | 1,227 | |||||||||||||||||||||||||||||||||||||||
Consumer Lines of Credit: | |||||||||||||||||||||||||||||||||||||||||||||||
Current | 20 | 3 | 4 | 5 | 3 | 127 | 1,072 | 1,234 | |||||||||||||||||||||||||||||||||||||||
Past due | — | — | — | — | — | 10 | 2 | 12 | |||||||||||||||||||||||||||||||||||||||
Total consumer lines of credit | 20 | 3 | 4 | 5 | 3 | 137 | 1,074 | 1,246 | |||||||||||||||||||||||||||||||||||||||
Total consumer loans | 2,801 | 1,739 | 772 | 466 | 379 | 1,272 | 1,074 | 8,503 | |||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 6,587 | $ | 4,518 | $ | 3,256 | $ | 1,952 | $ | 1,579 | $ | 4,130 | $ | 2,946 | $ | 24,968 |
(in millions) | 30-89 Days Past Due | ≥ 90 Days Past Due and Still Accruing | Non- Accrual | Total Past Due | Current | Total Loans and Leases | Non-accrual with No ACL | ||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 13 | $ | — | $ | 39 | $ | 52 | $ | 11,474 | $ | 11,526 | $ | 15 | |||||||||||||||||||||||||||
Commercial and industrial | 9 | 1 | 44 | 54 | 7,077 | 7,131 | 11 | ||||||||||||||||||||||||||||||||||
Commercial leases | 3 | — | 1 | 4 | 515 | 519 | — | ||||||||||||||||||||||||||||||||||
Other | 1 | — | — | 1 | 113 | 114 | — | ||||||||||||||||||||||||||||||||||
Total commercial loans and leases | 26 | 1 | 84 | 111 | 19,179 | 19,290 | 26 | ||||||||||||||||||||||||||||||||||
Direct installment | 7 | 1 | 7 | 15 | 2,769 | 2,784 | — | ||||||||||||||||||||||||||||||||||
Residential mortgages | 28 | 6 | 14 | 48 | 5,249 | 5,297 | — | ||||||||||||||||||||||||||||||||||
Indirect installment | 20 | 1 | 1 | 22 | 1,531 | 1,553 | — | ||||||||||||||||||||||||||||||||||
Consumer lines of credit | 10 | 3 | 7 | 20 | 1,311 | 1,331 | — | ||||||||||||||||||||||||||||||||||
Total consumer loans | 65 | 11 | 29 | 105 | 10,860 | 10,965 | — | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 91 | $ | 12 | $ | 113 | $ | 216 | $ | 30,039 | $ | 30,255 | $ | 26 |
(in millions) | 30-89 Days Past Due | > 90 Days Past Due and Still Accruing | Non- Accrual | Total Past Due | Current | Total Loans and Leases | Non-accrual with No ACL | ||||||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 11 | $ | — | $ | 48 | $ | 59 | $ | 9,840 | $ | 9,899 | $ | 20 | |||||||||||||||||||||||||||
Commercial and industrial | 4 | — | 15 | 19 | 5,958 | 5,977 | 4 | ||||||||||||||||||||||||||||||||||
Commercial leases | 1 | — | 1 | 2 | 493 | 495 | — | ||||||||||||||||||||||||||||||||||
Other | — | — | — | — | 94 | 94 | — | ||||||||||||||||||||||||||||||||||
Total commercial loans and leases | 16 | — | 64 | 80 | 16,385 | 16,465 | 24 | ||||||||||||||||||||||||||||||||||
Direct installment | 5 | — | 7 | 12 | 2,364 | 2,376 | — | ||||||||||||||||||||||||||||||||||
Residential mortgages | 20 | 4 | 10 | 34 | 3,620 | 3,654 | — | ||||||||||||||||||||||||||||||||||
Indirect installment | 12 | 1 | 2 | 15 | 1,212 | 1,227 | — | ||||||||||||||||||||||||||||||||||
Consumer lines of credit | 6 | 1 | 5 | 12 | 1,234 | 1,246 | — | ||||||||||||||||||||||||||||||||||
Total consumer loans | 43 | 6 | 24 | 73 | 8,430 | 8,503 | — | ||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 59 | $ | 6 | $ | 88 | $ | 153 | $ | 24,815 | $ | 24,968 | $ | 24 |
December 31 | 2022 | 2021 | |||||||||
(dollars in millions) | |||||||||||
Non-accrual loans | $ | 113 | $ | 88 | |||||||
Total non-performing loans and leases | 113 | 88 | |||||||||
Other real estate owned | 6 | 8 | |||||||||
Total non-performing assets | $ | 119 | $ | 96 | |||||||
Asset quality ratios: | |||||||||||
Non-performing loans and leases / total loans and leases | 0.37 | % | 0.35 | % | |||||||
Non-performing assets + 90 days past due / total loans and leases + OREO | 0.44 | 0.41 |
December 31 | 2022 | 2021 | |||||||||
(in millions) | |||||||||||
Accruing | $ | 63 | $ | 60 | |||||||
Non-accrual | 24 | 32 | |||||||||
Total TDRs | $ | 87 | $ | 92 |
Year Ended December 31 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
(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 | 12 | $ | 2 | $ | 2 | 25 | $ | 21 | $ | 20 | |||||||||||||||||||||||||
Commercial and industrial | 9 | 1 | — | 7 | 1 | — | |||||||||||||||||||||||||||||
Other | — | — | — | 1 | — | — | |||||||||||||||||||||||||||||
Total commercial loans | 21 | 3 | 2 | 33 | 22 | 20 | |||||||||||||||||||||||||||||
Direct installment | 42 | 2 | 2 | 38 | 2 | 2 | |||||||||||||||||||||||||||||
Residential mortgages | 44 | 7 | 7 | 27 | 4 | 4 | |||||||||||||||||||||||||||||
Consumer lines of credit | 14 | 1 | 1 | 41 | 2 | 2 | |||||||||||||||||||||||||||||
Total consumer loans | 100 | 10 | 10 | 106 | 8 | 8 | |||||||||||||||||||||||||||||
Total | 121 | $ | 13 | $ | 12 | 139 | $ | 30 | $ | 28 |
Year Ended December 31 | 2022 | 2021 | |||||||||||||||||||||
(dollars in millions) | Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | |||||||||||||||||||
Commercial real estate | 5 | $ | 1 | — | $ | — | |||||||||||||||||
Commercial and industrial | 2 | — | 1 | — | |||||||||||||||||||
Total commercial loans | 7 | 1 | 1 | — | |||||||||||||||||||
Direct installment | 5 | — | — | — | |||||||||||||||||||
Residential mortgages | 8 | 1 | 1 | — | |||||||||||||||||||
Consumer lines of credit | — | — | 1 | — | |||||||||||||||||||
Total consumer loans | 13 | 1 | 2 | — | |||||||||||||||||||
Total | 20 | $ | 2 | 3 | $ | — |
(in millions) | Balance at Beginning of Year | Charge- Offs | Recoveries | Net Charge- Offs | Provision for Credit Losses | Allowance for PCD Loans and Leases at Acquisition | Balance at End of Year | ||||||||||||||||||||||||||||||||||
Year Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 156.5 | $ | (12.5) | $ | 4.1 | $ | (8.4) | $ | 8.0 | $ | 6.0 | $ | 162.1 | |||||||||||||||||||||||||||
Commercial and industrial | 87.4 | (7.4) | 5.9 | (1.5) | 12.7 | 3.5 | 102.1 | ||||||||||||||||||||||||||||||||||
Commercial leases | 14.7 | (0.1) | — | (0.1) | (1.1) | — | 13.5 | ||||||||||||||||||||||||||||||||||
Other | 2.6 | (3.4) | 1.0 | (2.4) | 3.8 | — | 4.0 | ||||||||||||||||||||||||||||||||||
Total commercial loans and leases | 261.2 | (23.4) | 11.0 | (12.4) | 23.4 | 9.5 | 281.7 | ||||||||||||||||||||||||||||||||||
Direct installment | 26.4 | (0.6) | 0.7 | 0.1 | 8.9 | 0.5 | 35.9 | ||||||||||||||||||||||||||||||||||
Residential mortgages | 33.1 | (0.6) | 0.5 | (0.1) | 21.2 | 1.3 | 55.5 | ||||||||||||||||||||||||||||||||||
Indirect installment | 13.5 | (6.1) | 2.2 | (3.9) | 7.7 | — | 17.3 | ||||||||||||||||||||||||||||||||||
Consumer lines of credit | 10.1 | (1.0) | 1.1 | 0.1 | 0.6 | 0.5 | 11.3 | ||||||||||||||||||||||||||||||||||
Total consumer loans | 83.1 | (8.3) | 4.5 | (3.8) | 38.4 | 2.3 | 120.0 | ||||||||||||||||||||||||||||||||||
Total allowance for credit losses on loans and leases | 344.3 | (31.7) | 15.5 | (16.2) | 61.8 | 11.8 | 401.7 | ||||||||||||||||||||||||||||||||||
Allowance for unfunded loan commitments | 19.1 | — | — | — | 2.3 | — | 21.4 | ||||||||||||||||||||||||||||||||||
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments | $ | 363.4 | $ | (31.7) | $ | 15.5 | $ | (16.2) | $ | 64.1 | $ | 11.8 | $ | 423.1 |
(in millions) | Balance at Beginning of Year | Charge- Offs | Recoveries | Net Charge- Offs | Provision for Credit Losses | Balance at End of Year | |||||||||||||||||||||||||||||
Year Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 180.5 | $ | (8.8) | $ | 6.3 | $ | (2.5) | $ | (21.5) | $ | 156.5 | |||||||||||||||||||||||
Commercial and industrial | 81.2 | (15.7) | 6.6 | (9.1) | 15.3 | 87.4 | |||||||||||||||||||||||||||||
Commercial leases | 17.3 | (0.2) | 0.9 | 0.7 | (3.3) | 14.7 | |||||||||||||||||||||||||||||
Other | 1.4 | (2.3) | 1.3 | (1.0) | 2.2 | 2.6 | |||||||||||||||||||||||||||||
Total commercial loans and leases | 280.4 | (27.0) | 15.1 | (11.9) | (7.3) | 261.2 | |||||||||||||||||||||||||||||
Direct installment | 26.0 | (1.4) | 1.0 | (0.4) | 0.8 | 26.4 | |||||||||||||||||||||||||||||
Residential mortgages | 33.7 | (1.0) | 0.6 | (0.4) | (0.2) | 33.1 | |||||||||||||||||||||||||||||
Indirect installment | 11.2 | (3.1) | 2.2 | (0.9) | 3.2 | 13.5 | |||||||||||||||||||||||||||||
Consumer lines of credit | 11.8 | (1.7) | 1.4 | (0.3) | (1.4) | 10.1 | |||||||||||||||||||||||||||||
Total consumer loans | 82.7 | (7.2) | 5.2 | (2.0) | 2.4 | 83.1 | |||||||||||||||||||||||||||||
Total allowance for credit losses on loans and leases | 363.1 | (34.2) | 20.3 | (13.9) | (4.9) | 344.3 | |||||||||||||||||||||||||||||
Allowance for unfunded loan commitments | 13.6 | — | — | — | 5.5 | 19.1 | |||||||||||||||||||||||||||||
Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments | $ | 376.7 | $ | (34.2) | $ | 20.3 | $ | (13.9) | $ | 0.6 | $ | 363.4 |
(in millions) | Balance at Beginning of Period | Charge- Offs | Recoveries | Net Charge- Offs | Provision for Credit Losses | ASC 326 Adoption Impact | Initial Allowance on PCD Loans | Balance at End of Period | |||||||||||||||||||||||||||||||||||||||
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 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
Balance at beginning of period | $ | 19 | $ | 14 | $ | 3 | |||||||||||
Provision for unfunded loan commitments and letters of credit: | |||||||||||||||||
Commercial portfolio | 2 | 5 | 1 | ||||||||||||||
Consumer portfolio | — | — | — | ||||||||||||||
ASC 326 adoption impact: | |||||||||||||||||
Commercial portfolio | — | — | 8 | ||||||||||||||
Consumer portfolio | — | — | 2 | ||||||||||||||
Balance at end of period | $ | 21 | $ | 19 | $ | 14 |
December 31 | 2022 | 2021 | |||||||||
(in millions) | |||||||||||
Mortgage loans sold with servicing retained | $ | 5,242 | $ | 4,855 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
Mortgage loans sold with servicing retained | $ | 1,056 | $ | 1,762 | $ | 1,636 | |||||||||||
Pre-tax net gains (losses) resulting from above loan sales (1) | (12) | 43 | 70 | ||||||||||||||
Mortgage servicing fees (1) | 13 | 12 | 12 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
Balance at beginning of period | $ | 44.4 | $ | 35.6 | $ | 42.6 | |||||||||||
Additions | 13.0 | 19.2 | 16.0 | ||||||||||||||
Payoffs and curtailments | (4.4) | (12.8) | (14.8) | ||||||||||||||
Impairment (charge) / recovery | 2.5 | 4.8 | (5.8) | ||||||||||||||
Amortization | (2.7) | (2.4) | (2.4) | ||||||||||||||
Balance at end of period | $ | 52.8 | $ | 44.4 | $ | 35.6 | |||||||||||
Fair value, beginning of period | $ | 46.0 | $ | 35.6 | $ | 45.2 | |||||||||||
Fair value, end of period | 68.6 | 46.0 | 35.6 |
December 31 | 2022 | 2021 | |||||||||
(dollars in millions) | |||||||||||
Weighted average life (months) | 96 | 76.6 | |||||||||
Constant prepayment rate (annualized) | 7.3 | % | 11.2 | % | |||||||
Discount rate | 10.0 | % | 9.5 | % | |||||||
Effect on fair value due to change in interest rates: | |||||||||||
+2.00% | $ | 9 | $ | 15 | |||||||
+1.00% | 4 | 9 | |||||||||
+0.50% | 2 | 5 | |||||||||
+0.25% | 1 | 3 | |||||||||
-0.25% | (1) | (3) | |||||||||
-0.50% | (3) | (7) | |||||||||
-1.00% | (6) | (13) | |||||||||
-2.00% | (15) | (28) |
December 31 | 2022 | 2021 | |||||||||
(in millions) | |||||||||||
SBA loans sold to investors with servicing retained | $ | 186 | $ | 230 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
SBA loans sold with servicing retained | $ | 15 | $ | 64 | $ | 33 | |||||||||||
Pretax gains resulting from above loan sales (1) | 1 | 8 | 3 | ||||||||||||||
SBA servicing fees (1) | 2 | 2 | 2 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
Balance at beginning of period | $ | 3 | $ | 3 | $ | 3 | |||||||||||
Additions | — | 1 | 1 | ||||||||||||||
Payoffs, curtailments and amortization | (1) | (1) | (1) | ||||||||||||||
Balance at end of period | $ | 2 | $ | 3 | $ | 3 | |||||||||||
Fair value, beginning of period | $ | 3 | $ | 3 | $ | 3 | |||||||||||
Fair value, end of period | 2 | 3 | 3 |
December 31 | 2022 | 2021 | |||||||||
(dollars in millions) | |||||||||||
Weighted average life (months) | 42 | 42 | |||||||||
Constant prepayment rate | 15.2 | % | 14.8 | % | |||||||
Discount rate | 19.9 | 12.1 | |||||||||
Decline in fair value due to change in interest rates: | |||||||||||
1% adverse change | $ | — | $ | (0.1) | |||||||
2% adverse change | (0.1) | (0.2) | |||||||||
Decline in fair value due to change in constant prepayment rates: | |||||||||||
10% adverse change | (0.1) | (0.1) | |||||||||
20% adverse change | (0.1) | (0.2) |
December 31 | 2022 | 2021 | |||||||||
(in millions) | |||||||||||
Land | $ | 74 | $ | 59 | |||||||
Premises | 264 | 229 | |||||||||
Equipment | 406 | 344 | |||||||||
Finance leases | 23 | 12 | |||||||||
767 | 644 | ||||||||||
Accumulated depreciation | (335) | (299) | |||||||||
Total premises and equipment, net | $ | 432 | $ | 345 |
December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
Depreciation expense for premises and equipment | $ | 49 | $ | 46 | $ | 43 |
(in millions) | Community Banking | Wealth Manage- ment | Insurance | Total | |||||||||||||||||||
Balance at January 1, 2021 | $ | 2,231 | $ | 8 | $ | 23 | $ | 2,262 | |||||||||||||||
Goodwill additions | — | — | — | — | |||||||||||||||||||
Balance at December 31, 2021 | 2,231 | 8 | 23 | 2,262 | |||||||||||||||||||
Goodwill additions | 215 | — | — | 215 | |||||||||||||||||||
Balance at December 31, 2022 | $ | 2,446 | $ | 8 | $ | 23 | $ | 2,477 |
(in millions) | Core Deposit Intangibles | Customer Renewal Lists | Total | ||||||||||||||
December 31, 2022 | |||||||||||||||||
Gross carrying amount | $ | 258 | $ | 18 | $ | 276 | |||||||||||
Accumulated amortization | (173) | (14) | (187) | ||||||||||||||
Net carrying amount | $ | 85 | $ | 4 | $ | 89 | |||||||||||
December 31, 2021 | |||||||||||||||||
Gross carrying amount | $ | 197 | $ | 18 | $ | 215 | |||||||||||
Accumulated amortization | (160) | (13) | (173) | ||||||||||||||
Net carrying amount | $ | 37 | $ | 5 | $ | 42 |
December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
Amortization expense | $ | 14 | $ | 12 | $ | 13 |
(in millions) | |||||
2023 | $ | 20 | |||
2024 | 18 | ||||
2025 | 16 | ||||
2026 | 12 | ||||
2027 | 8 | ||||
Total | $ | 74 |
Twelve Months Ended December 31, | |||||||||||||||||
(dollars in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Operating lease cost | $ | 30 | $ | 29 | $ | 27 | |||||||||||
Short-term lease cost | 1 | 1 | 1 | ||||||||||||||
Variable lease cost | 4 | 3 | 3 | ||||||||||||||
Finance lease cost | 1 | — | — | ||||||||||||||
Total lease cost | $ | 36 | $ | 33 | $ | 31 |
Twelve Months Ended December 31, | |||||||||||
(dollars in millions) | 2022 | 2021 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | 28 | $ | 27 | |||||||
Operating cash flows from finance leases | $ | 1 | $ | — | |||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||
Operating leases | $ | 9 | $ | 23 | |||||||
Finance leases | $ | 11 | $ | 12 | |||||||
Weighted average remaining lease term (years): | |||||||||||
Operating leases | 9.32 | 9.83 | |||||||||
Finance leases | 21.00 | 23.09 | |||||||||
Weighted average discount rate: | |||||||||||
Operating leases | 2.5 | % | 2.4 | % | |||||||
Finance leases | 2.6 | % | 1.9 | % |
(in millions) | Operating Leases | Finance Leases | Total Leases | ||||||||||||||
December 31, 2022 | |||||||||||||||||
2023 | $ | 27 | $ | 1 | $ | 28 | |||||||||||
2024 | 24 | 1 | 25 | ||||||||||||||
2025 | 18 | 1 | 19 | ||||||||||||||
2026 | 15 | 1 | 16 | ||||||||||||||
2027 | 12 | 2 | 14 | ||||||||||||||
Later years | 69 | 24 | 93 | ||||||||||||||
Total lease payments | 165 | 30 | 195 | ||||||||||||||
Less: imputed interest | (19) | (7) | (26) | ||||||||||||||
Present value of lease liabilities | $ | 146 | $ | 23 | $ | 169 |
(in millions) | Total Assets | Total Liabilities | Maximum Exposure to Loss | ||||||||||||||
December 31, 2022 | |||||||||||||||||
Trust preferred securities (1) | $ | 1 | $ | 72 | $ | — | |||||||||||
Affordable housing tax credit partnerships | 123 | 37 | 123 | ||||||||||||||
Other investments | 33 | 9 | 33 | ||||||||||||||
Total | $ | 157 | $ | 118 | $ | 156 | |||||||||||
December 31, 2021 | |||||||||||||||||
Trust preferred securities (1) | $ | 1 | $ | 67 | $ | — | |||||||||||
Affordable housing tax credit partnerships | 121 | 34 | 121 | ||||||||||||||
Other investments | 28 | 6 | 28 | ||||||||||||||
Total | $ | 150 | $ | 107 | $ | 149 | |||||||||||
(1) Represents our investment in unconsolidated subsidiaries. |
December 31 | 2022 | 2021 | |||||||||
(in millions) | |||||||||||
LIHTC investments included in other assets | $ | 86 | $ | 87 | |||||||
Unfunded LIHTC commitments | 37 | 34 |
Year Ended December 31 | |||||||||||||||||
(in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Provision for income taxes: | |||||||||||||||||
Amortization of LIHTC investments under proportional method | $ | 14 | $ | 13 | $ | 11 | |||||||||||
Low-income housing tax credits | (15) | (15) | (12) | ||||||||||||||
Other tax benefits related to tax credit investments | (2) | (2) | (2) | ||||||||||||||
Total impact on provision for income taxes | $ | (3) | $ | (4) | $ | (3) |
December 31 | 2022 | 2021 | |||||||||
(in millions) | |||||||||||
Non-interest-bearing demand | $ | 11,916 | $ | 10,789 | |||||||
Interest-bearing demand | 15,100 | 14,409 | |||||||||
Savings | 4,142 | 3,669 | |||||||||
Certificates and other time deposits: | |||||||||||
Less than $100,000 | 1,763 | 1,540 | |||||||||
$100,000 through $250,000 | 827 | 866 | |||||||||
Greater than $250,000 | 1,022 | 453 | |||||||||
Total certificates and other time deposits | 3,612 | 2,859 | |||||||||
Total deposits | $ | 34,770 | $ | 31,726 |
(in millions) | |||||
2023 | $ | 2,638 | |||
2024 | 635 | ||||
2025 | 151 | ||||
2026 | 119 | ||||
2027 | 64 | ||||
Later years | 5 | ||||
Total | $ | 3,612 |
December 31 | 2022 | 2021 | |||||||||
(in millions) | |||||||||||
Securities sold under repurchase agreements | $ | 317 | $ | 376 | |||||||
Federal Home Loan Bank advances | 930 | 1,030 | |||||||||
Subordinated notes | 125 | 130 | |||||||||
Total short-term borrowings | $ | 1,372 | $ | 1,536 |
December 31 | 2022 | 2021 | 2020 | ||||||||||||||
Year-to-date average | 1.72 | % | 1.61 | % | 1.53 | % | |||||||||||
Period-end | 1.96 | 1.61 | 1.57 |
December 31 | 2022 | 2021 | |||||||||
(in millions) | |||||||||||
Senior notes | $ | 648 | $ | 299 | |||||||
Subordinated notes | 70 | 68 | |||||||||
Junior subordinated debt | 72 | 67 | |||||||||
Other subordinated debt | 303 | 248 | |||||||||
Total long-term borrowings | $ | 1,093 | $ | 682 |
(in millions) | |||||
2023 | $ | 337 | |||
2024 | 7 | ||||
2025 | 457 | ||||
2026 | 9 | ||||
2027 | 9 | ||||
Later years | 274 | ||||
Total | $ | 1,093 |
December 31 | 2022 | 2021 | 2020 | ||||||||||||||
Subordinated notes weighted average interest rate | 3.36 | % | 3.12 | % | 3.23 | % |
(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 | 6.42 | % | LIBOR + 165 bps | |||||||||||||||||||||||||
Yadkin Valley Statutory Trust I | 25 | 1 | 22 | 12/15/2037 | 6.09 | % | LIBOR + 132 bps | ||||||||||||||||||||||||||||
FNB Financial Services Capital Trust I | 25 | 1 | 23 | 9/30/2035 | 6.19 | % | LIBOR + 146 bps | ||||||||||||||||||||||||||||
Patapsco Statutory Trust I | 5 | — | 5 | 12/15/2035 | 6.25 | % | LIBOR + 148 bps | ||||||||||||||||||||||||||||
Total | $ | 77 | $ | 3 | $ | 72 |
(dollars in millions) | Aggregate Principal Amount Issued | Net Proceeds (6) | Carrying Value | Stated Maturity Date | Interest Rate | ||||||||||||||||||||||||
Senior Notes: | |||||||||||||||||||||||||||||
2.200% Senior Notes due February 24, 2023 | $ | 300 | $ | 298 | $ | 300 | 2/24/2023 | 2.200 | % | ||||||||||||||||||||
5.150% Senior Notes due August 25, 2025 | 350 | 347 | 348 | 8/25/2025 | 5.150 | % | |||||||||||||||||||||||
Total senior notes | 650 | 645 | 648 | ||||||||||||||||||||||||||
Other Subordinated Debt: | |||||||||||||||||||||||||||||
4.950% Fixed-To-Floating Rate Subordinated Notes due 2029 (1) | 120 | 118 | 119 | 2/14/2029 | 4.950 | % | |||||||||||||||||||||||
4.875% Subordinated Notes due 2025 | 100 | 98 | 100 | 10/2/2025 | 4.875 | % | |||||||||||||||||||||||
7.625% Subordinated Notes due August 12, 2023 (5) | 38 | 46 | 29 | 8/12/2023 | 7.625 | % | |||||||||||||||||||||||
6.000% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 (2) (5) | 25 | 26 | 25 | 12/6/2028 | 6.000 | % | |||||||||||||||||||||||
5.000% Fixed-To-Floating Rate Subordinated Note due May 29, 2030 (3) (5) | 25 | 24 | 24 | 5/29/2030 | 5.000 | % | |||||||||||||||||||||||
6.000% Fixed-To-Floating Rate Subordinated Note due May 15, 2028 (4) (5) | 6 | 6 | 6 | 5/15/2028 | 6.000 | % | |||||||||||||||||||||||
Total other subordinated debt | 314 | 318 | 303 | ||||||||||||||||||||||||||
Total | $ | 964 | $ | 963 | $ | 951 |
December 31 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
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 | $ | 2,180 | $ | — | $ | 1 | $ | 2,080 | $ | 1 | $ | — | |||||||||||||||||||||||
Interest rate swaps – not designated | 5,333 | 89 | 6 | 5,547 | 2 | 20 | |||||||||||||||||||||||||||||
Total subject to master netting arrangements | 7,513 | 89 | 7 | 7,627 | 3 | 20 | |||||||||||||||||||||||||||||
Not subject to master netting arrangements: | |||||||||||||||||||||||||||||||||||
Interest rate swaps – not designated | 5,333 | 6 | 390 | 5,547 | 172 | 24 | |||||||||||||||||||||||||||||
Interest rate lock commitments – not designated | 163 | — | 12 | 482 | 9 | — | |||||||||||||||||||||||||||||
Forward delivery commitments – not designated | 203 | 1 | 2 | 502 | 1 | 1 | |||||||||||||||||||||||||||||
Credit risk contracts – not designated | 506 | — | — | 368 | — | — | |||||||||||||||||||||||||||||
Total not subject to master netting arrangements | 6,205 | 7 | 404 | 6,899 | 182 | 25 | |||||||||||||||||||||||||||||
Total | $ | 13,718 | $ | 96 | $ | 411 | $ | 14,526 | $ | 185 | $ | 45 |
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) | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
Derivatives in cash flow hedging relationships: | |||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | (39) | $ | 5 | $ | (51) | Interest income (expense) | $ | (11) | $ | (18) | $ | (14) | ||||||||||||||||||||||||||||
Other income | — | — | (9) |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
(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) | $ | 1,117 | $ | 25 | $ | 886 | $ | 27 | $ | 990 | $ | 38 | |||||||||||||||||||||||
The effects of cash flow hedging: | |||||||||||||||||||||||||||||||||||
Gain (loss) on cash flow hedging relationships: | |||||||||||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||||||||||
Amount of gain (loss) reclassified from AOCI into net income (1) | (8) | (3) | 2 | (20) | (7) | (16) | |||||||||||||||||||||||||||||
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 | 2022 | 2021 | 2020 | |||||||||||||||||||
Interest rate swaps | Non-interest income - other | $ | — | $ | — | $ | — | ||||||||||||||||
Interest rate lock commitments | Mortgage banking operations | — | — | — | |||||||||||||||||||
Forward delivery contracts | Mortgage banking operations | (1) | 2 | (2) | |||||||||||||||||||
Credit risk contracts | Non-interest income - other | — | — | — |
Amount Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||
(in millions) | Amount Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral | Net Amount | |||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Not designated | $ | 89 | $ | — | $ | 88 | $ | 1 | |||||||||||||||
Total | $ | 89 | $ | — | $ | 88 | $ | 1 |
Derivative Liabilities | |||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Designated | $ | 1 | $ | — | $ | 1 | $ | — | |||||||||||||||
Not designated | 6 | — | 6 | — | |||||||||||||||||||
Total | $ | 7 | $ | — | $ | 7 | $ | — |
December 31, 2021 | |||||||||||||||||||||||
Derivative Assets | |||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Designated | $ | 1 | $ | — | $ | 1 | $ | — | |||||||||||||||
Not designated | 2 | — | 2 | — | |||||||||||||||||||
Total | $ | 3 | $ | — | $ | 3 | $ | — |
Derivative Liabilities | |||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Not designated | $ | 20 | $ | — | $ | 20 | $ | — | |||||||||||||||
Total | $ | 20 | $ | — | $ | 20 | $ | — |
December 31 | 2022 | 2021 | |||||||||
(in millions) | |||||||||||
Commitments to extend credit | $ | 13,250 | $ | 11,228 | |||||||
Standby letters of credit | 207 | 194 |
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
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 | 4,680,786 | $ | 9.71 | 4,322,115 | $ | 9.46 | 2,858,357 | $ | 12.56 | ||||||||||||||||||||||||||
Granted | 1,266,821 | 13.07 | 1,113,314 | 12.65 | 2,004,895 | 6.95 | |||||||||||||||||||||||||||||
Acquired | 60,300 | 9.41 | — | — | — | — | |||||||||||||||||||||||||||||
Net adjustment due to performance | 575,264 | 9.58 | 527,975 | 10.79 | 47,290 | 13.00 | |||||||||||||||||||||||||||||
Vested | (1,702,099) | 10.57 | (1,320,646) | 12.07 | (613,581) | 14.41 | |||||||||||||||||||||||||||||
Forfeited/expired/canceled | (243,062) | 10.88 | (143,238) | 10.65 | (203,058) | 12.54 | |||||||||||||||||||||||||||||
Dividend reinvestment | 183,172 | 12.12 | 181,266 | 12.17 | 228,212 | 8.14 | |||||||||||||||||||||||||||||
Unvested units outstanding at end of year | 4,821,182 | 10.30 | 4,680,786 | 9.71 | 4,322,115 | 9.46 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
Stock-based compensation expense | $ | 22 | $ | 21 | $ | 16 | |||||||||||
Tax benefit related to stock-based compensation expense | 5 | 4 | 3 | ||||||||||||||
Fair value of units vested | 21 | 16 | 5 |
(dollars in millions) | Service- Based Units | Performance- Based Units | Total | ||||||||||||||
Unvested restricted stock units | 2,842,684 | 1,978,498 | 4,821,182 | ||||||||||||||
Unrecognized compensation expense | $ | 9 | $ | — | $ | 9 | |||||||||||
Intrinsic value | $ | 37 | $ | 26 | $ | 63 | |||||||||||
Weighted average remaining life (in years) | 1.77 | 1.43 | 1.63 |
2022 | Weighted Average Exercise Price per Share | 2021 | Weighted Average Exercise Price per Share | 2020 | Weighted Average Exercise Price per Share | ||||||||||||||||||||||||||||||
Options outstanding at beginning of year | 167,327 | $ | 8.83 | 196,086 | $ | 8.61 | 246,084 | $ | 8.14 | ||||||||||||||||||||||||||
Assumed from acquisitions | 29,396 | 8.08 | — | — | — | — | |||||||||||||||||||||||||||||
Exercised | (55,713) | 7.23 | (28,168) | 7.38 | (33,945) | 5.74 | |||||||||||||||||||||||||||||
Forfeited/expired | (2,629) | 8.22 | (591) | 6.44 | (16,053) | 7.38 | |||||||||||||||||||||||||||||
Options outstanding and exercisable at end of year | 138,381 | 9.32 | 167,327 | 8.83 | 196,086 | 8.61 |
Range of Exercise Prices | Options Outstanding and Exercisable | Weighted Average Remaining Contractual Years | Weighted Average Exercise Price | |||||||||||||||||
$6.97 - $10.46 | 65,301 | 1.51 | $ | 7.76 | ||||||||||||||||
$10.47 - $11.37 | 73,080 | 2.14 | 10.72 | |||||||||||||||||
138,381 |
December 31 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Qualified | Non-Qualified | Total | Qualified | Non-Qualified | Total | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Accumulated benefit obligation | $ | 114 | $ | 16 | $ | 130 | $ | 154 | $ | 18 | $ | 172 | |||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 154 | $ | 18 | $ | 172 | $ | 167 | $ | 20 | $ | 187 | |||||||||||||||||||||||
Acquisition | — | 2 | 2 | — | — | — | |||||||||||||||||||||||||||||
Interest cost | 4 | 1 | 5 | 4 | — | 4 | |||||||||||||||||||||||||||||
Actuarial loss (gain) | (34) | (3) | (37) | (7) | (1) | (8) | |||||||||||||||||||||||||||||
Benefits paid | (10) | (2) | (12) | (10) | (1) | (11) | |||||||||||||||||||||||||||||
Projected benefit obligation at end of year | $ | 114 | $ | 16 | $ | 130 | $ | 154 | $ | 18 | $ | 172 | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 201 | $ | — | $ | 201 | $ | 189 | $ | — | $ | 189 | |||||||||||||||||||||||
Actual return on plan assets | (21) | — | (21) | 22 | — | 22 | |||||||||||||||||||||||||||||
Corporation contribution | — | 2 | 2 | — | 1 | 1 | |||||||||||||||||||||||||||||
Benefits paid | (10) | (2) | (12) | (10) | (1) | (11) | |||||||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 170 | $ | — | $ | 170 | $ | 201 | $ | — | $ | 201 | |||||||||||||||||||||||
Funded status of plans | $ | 56 | $ | (16) | $ | 40 | $ | 47 | $ | (18) | $ | 29 |
Assumptions at December 31 | 2022 | 2021 | |||||||||
Weighted average discount rate | 5.34 | % | 2.72 | % | |||||||
Rates of average increase in compensation levels | 3.30 | 3.50 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
Interest cost | $ | 5 | $ | 4 | $ | 6 | |||||||||||
Expected return on plan assets | (14) | (12) | (13) | ||||||||||||||
Actuarial loss amortization | 2 | 3 | 3 | ||||||||||||||
Total pension cost | (7) | (5) | (4) | ||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income: | |||||||||||||||||
Current year actuarial (gain) loss | (2) | (18) | 10 | ||||||||||||||
Amortization of actuarial loss | (2) | (3) | (3) | ||||||||||||||
Total amount recognized in other comprehensive (loss) income | (4) | (21) | 7 | ||||||||||||||
Total amount recognized in net periodic benefit cost (gain) and other comprehensive (loss) income | $ | (11) | $ | (26) | $ | 3 |
Assumptions for the Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
Weighted average discount rate | 2.72 | % | 2.31 | % | 3.17 | % | |||||||||||
Rates of increase in compensation levels | 3.30 | 3.50 | 3.50 | ||||||||||||||
Expected long-term rate of return on assets | 6.75 | 6.75 | 7.25 |
(in millions) | |||||||||||
Expected employer contributions: | 2023 | $ | 2 | ||||||||
Expected benefit payments: | 2023 | 11 | |||||||||
2024 | 11 | ||||||||||
2025 | 11 | ||||||||||
2026 | 11 | ||||||||||
2027 | 11 | ||||||||||
2028 – 2032 | 51 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
401(k) contribution expense | $ | 20 | $ | 19 | $ | 17 |
Target Allocation | Percentage of Plan Assets | ||||||||||||||||
December 31 | 2023 | 2022 | 2021 | ||||||||||||||
Asset Category | |||||||||||||||||
Equity securities | 45 - 65 | 63 | % | 64 | % | ||||||||||||
Debt securities | 30 - 50 | 35 | 33 | ||||||||||||||
Cash equivalents | 0 - 10 | 2 | 3 |
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Asset Class | |||||||||||||||||||||||
Cash | $ | 4 | $ | — | $ | — | $ | 4 | |||||||||||||||
Equity securities: | |||||||||||||||||||||||
F.N.B. Corporation | 5 | — | — | 5 | |||||||||||||||||||
Other large-cap U.S. financial services companies | 2 | — | — | 2 | |||||||||||||||||||
Other large-cap U.S. companies | 58 | — | — | 58 | |||||||||||||||||||
Other equity | 1 | — | — | 1 | |||||||||||||||||||
Mutual fund equity investments: | |||||||||||||||||||||||
U.S. equity index funds: | |||||||||||||||||||||||
U.S. small-cap equity index funds | 4 | — | — | 4 | |||||||||||||||||||
U.S. mid-cap equity index funds | 5 | — | — | 5 | |||||||||||||||||||
Non-U.S. equities growth fund | 12 | — | — | 12 | |||||||||||||||||||
U.S. equity funds: | |||||||||||||||||||||||
U.S. mid-cap | 12 | — | — | 12 | |||||||||||||||||||
U.S. small-cap | 4 | — | — | 4 | |||||||||||||||||||
Other | 4 | — | — | 4 | |||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
U.S. government agencies | — | 40 | — | 40 | |||||||||||||||||||
Fixed income mutual funds: | |||||||||||||||||||||||
U.S. investment-grade fixed income securities | 19 | — | — | 19 | |||||||||||||||||||
Total | $ | 130 | $ | 40 | $ | — | $ | 170 |
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Asset Class | |||||||||||||||||||||||
Cash | $ | 7 | $ | — | $ | — | $ | 7 | |||||||||||||||
Equity securities: | |||||||||||||||||||||||
F.N.B. Corporation | 4 | — | — | 4 | |||||||||||||||||||
Other large-cap U.S. financial services companies | 3 | — | — | 3 | |||||||||||||||||||
Other large-cap U.S. companies | 67 | — | — | 67 | |||||||||||||||||||
Other equity | 1 | — | — | 1 | |||||||||||||||||||
Mutual fund equity investments: | |||||||||||||||||||||||
U.S. 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 | 17 | — | — | 17 | |||||||||||||||||||
U.S. equity funds: | |||||||||||||||||||||||
U.S. mid-cap | 14 | — | — | 14 | |||||||||||||||||||
U.S. small-cap | 5 | — | — | 5 | |||||||||||||||||||
Other | 5 | — | — | 5 | |||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
U.S. government agencies | — | 44 | — | 44 | |||||||||||||||||||
Fixed income mutual funds: | |||||||||||||||||||||||
U.S. investment-grade fixed income securities | 23 | — | — | 23 | |||||||||||||||||||
Total | $ | 157 | $ | 44 | $ | — | $ | 201 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
Current income taxes: | |||||||||||||||||
Federal taxes | $ | 94 | $ | 79 | $ | 71 | |||||||||||
State taxes | 9 | 4 | 5 | ||||||||||||||
Total current income taxes | 103 | 83 | 76 | ||||||||||||||
Deferred income taxes: | |||||||||||||||||
Federal taxes | 9 | 12 | (20) | ||||||||||||||
State taxes | 2 | 3 | 1 | ||||||||||||||
Total deferred income taxes | 11 | 15 | (19) | ||||||||||||||
Total income taxes | $ | 114 | $ | 98 | $ | 57 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
Statutory federal tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
State taxes, net of federal benefit | 1.5 | 1.1 | 1.6 | ||||||||||||||
Tax-exempt interest | (1.6) | (1.7) | (2.8) | ||||||||||||||
Cash surrender value on BOLI | (0.4) | (0.5) | (0.8) | ||||||||||||||
Tax credits | (3.2) | (3.2) | (6.3) | ||||||||||||||
Affordable housing cost amortization, net of tax benefits | 2.2 | 2.2 | 2.5 | ||||||||||||||
Other items | 1.1 | 0.7 | 1.5 | ||||||||||||||
Effective tax rate | 20.6 | % | 19.6 | % | 16.7 | % |
December 31 | 2022 | 2021 | |||||||||
(in millions) | |||||||||||
Deferred tax assets: | |||||||||||
Allowance for credit losses | $ | 90 | $ | 76 | |||||||
Discounts on loans acquired in a business combination | 14 | 8 | |||||||||
Net operating loss/tax credit carryforwards | 50 | 37 | |||||||||
Deferred compensation | 16 | 14 | |||||||||
Securities impairments | 2 | 1 | |||||||||
Lease liability | 39 | 36 | |||||||||
Net unrealized securities losses | 90 | 4 | |||||||||
Other | 13 | 13 | |||||||||
Total | 314 | 189 | |||||||||
Valuation allowance | (35) | (34) | |||||||||
Total deferred tax assets | 279 | 155 | |||||||||
Deferred tax liabilities: | |||||||||||
Loan costs | (10) | (6) | |||||||||
Depreciation | (7) | (11) | |||||||||
Prepaid expenses | (1) | (1) | |||||||||
Amortizable intangibles | (24) | (11) | |||||||||
Pension and other defined benefit plans | (7) | (4) | |||||||||
Lease financing | (31) | (33) | |||||||||
Mortgage servicing rights | (12) | (10) | |||||||||
Lease ROU asset | (35) | (34) | |||||||||
Other | (4) | (2) | |||||||||
Total deferred tax liabilities | (131) | (112) | |||||||||
Net deferred tax assets | $ | 148 | $ | 43 |
(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, 2022 | |||||||||||||||||||||||
Balance at beginning of period | $ | 8 | $ | (22) | $ | (48) | $ | (62) | |||||||||||||||
Other comprehensive (loss) income before reclassifications | (277) | (30) | 4 | (303) | |||||||||||||||||||
Amounts reclassified from AOCI | — | 8 | — | 8 | |||||||||||||||||||
Net current period other comprehensive (loss) income | (277) | (22) | 4 | (295) | |||||||||||||||||||
Balance at end of period | $ | (269) | $ | (44) | $ | (44) | $ | (357) |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(dollars in millions, except per share data) | |||||||||||||||||
Net income | $ | 439 | $ | 405 | $ | 286 | |||||||||||
Less: Preferred stock dividends | 8 | 8 | 8 | ||||||||||||||
Net income available to common stockholders | $ | 431 | $ | 397 | $ | 278 | |||||||||||
Basic weighted average common shares outstanding | 349,976,557 | 319,791,100 | 323,368,639 | ||||||||||||||
Net effect of dilutive stock options and restricted stock | 4,075,640 | 3,690,388 | 2,119,325 | ||||||||||||||
Diluted weighted average common shares outstanding | 354,052,197 | 323,481,488 | 325,487,964 | ||||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 1.23 | $ | 1.24 | $ | 0.86 | |||||||||||
Diluted | $ | 1.22 | $ | 1.23 | $ | 0.85 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
Average shares excluded from the diluted earnings per common share calculation | — | — | 22,375 |
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, 2022 | |||||||||||||||||||||||||||||||||||
F.N.B. Corporation: | |||||||||||||||||||||||||||||||||||
Total capital | $ | 4,183 | 12.06 | % | $ | 3,467 | 10.00 | % | $ | 3,640 | 10.50 | % | |||||||||||||||||||||||
Tier 1 capital | 3,511 | 10.13 | 2,080 | 6.00 | 2,947 | 8.50 | |||||||||||||||||||||||||||||
Common equity tier 1 | 3,405 | 9.82 | n/a | n/a | 2,427 | 7.00 | |||||||||||||||||||||||||||||
Leverage | 3,511 | 8.64 | n/a | n/a | 1,626 | 4.00 | |||||||||||||||||||||||||||||
Risk-weighted assets | 34,671 | ||||||||||||||||||||||||||||||||||
FNBPA: | |||||||||||||||||||||||||||||||||||
Total capital | 4,327 | 12.51 | 3,459 | 10.00 | 3,632 | 10.50 | |||||||||||||||||||||||||||||
Tier 1 capital | 3,640 | 10.52 | 2,767 | 8.00 | 2,940 | 8.50 | |||||||||||||||||||||||||||||
Common equity tier 1 | 3,560 | 10.29 | 2,248 | 6.50 | 2,421 | 7.00 | |||||||||||||||||||||||||||||
Leverage | 3,640 | 8.97 | 2,029 | 5.00 | 1,623 | 4.00 | |||||||||||||||||||||||||||||
Risk-weighted assets | 34,589 | ||||||||||||||||||||||||||||||||||
As of December 31, 2021 | |||||||||||||||||||||||||||||||||||
F.N.B. Corporation: | |||||||||||||||||||||||||||||||||||
Total capital | $ | 3,531 | 12.18 | % | $ | 2,899 | 10.00 | % | $ | 3,044 | 10.50 | % | |||||||||||||||||||||||
Tier 1 capital | 2,984 | 10.29 | 1,739 | 6.00 | 2,464 | 8.50 | |||||||||||||||||||||||||||||
Common equity tier 1 | 2,877 | 9.92 | n/a | n/a | 2,029 | 7.00 | |||||||||||||||||||||||||||||
Leverage | 2,984 | 7.99 | n/a | n/a | 1,493 | 4.00 | |||||||||||||||||||||||||||||
Risk-weighted assets | 28,991 | ||||||||||||||||||||||||||||||||||
FNBPA: | |||||||||||||||||||||||||||||||||||
Total capital | 3,695 | 12.77 | 2,893 | 10.00 | 3,038 | 10.50 | |||||||||||||||||||||||||||||
Tier 1 capital | 3,098 | 10.71 | 2,314 | 8.00 | 2,459 | 8.50 | |||||||||||||||||||||||||||||
Common equity tier 1 | 3,018 | 10.43 | 1,880 | 6.50 | 2,025 | 7.00 | |||||||||||||||||||||||||||||
Leverage | 3,098 | 8.31 | 1,864 | 5.00 | 1,491 | 4.00 | |||||||||||||||||||||||||||||
Risk-weighted assets | 28,930 |
Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
(in millions) | |||||||||||||||||
Interest paid on deposits and other borrowings | $ | 144 | $ | 101 | $ | 216 | |||||||||||
Income taxes paid | 81 | 74 | 57 | ||||||||||||||
Transfers of loans to other real estate owned | 2 | 4 | 3 | ||||||||||||||
Loans transferred to held for sale from portfolio | — | — | 537 | ||||||||||||||
Loans transferred to portfolio from held for sale | 12 | — | — |
(in millions) | Community Banking | Wealth Manage- ment | Insurance | Parent and Other | Consolidated | ||||||||||||||||||||||||
At or for the Year Ended December 31, 2022 | |||||||||||||||||||||||||||||
Interest income | $ | 1,280 | $ | — | $ | — | $ | 5 | $ | 1,285 | |||||||||||||||||||
Interest expense | 145 | — | — | 20 | 165 | ||||||||||||||||||||||||
Net interest income | 1,135 | — | — | (15) | 1,120 | ||||||||||||||||||||||||
Provision for credit losses | 63 | — | — | 1 | 64 | ||||||||||||||||||||||||
Non-interest income | 240 | 64 | 24 | (5) | 323 | ||||||||||||||||||||||||
Non-interest expense (1) | 744 | 42 | 19 | 7 | 812 | ||||||||||||||||||||||||
Amortization of intangibles | 13 | — | 1 | — | 14 | ||||||||||||||||||||||||
Income tax expense (benefit) | 116 | 5 | 1 | (8) | 114 | ||||||||||||||||||||||||
Net income (loss) | 439 | 17 | 3 | (20) | 439 | ||||||||||||||||||||||||
Total assets | 43,586 | 37 | 33 | 69 | 43,725 | ||||||||||||||||||||||||
Total intangibles | 2,530 | 9 | 27 | — | 2,566 | ||||||||||||||||||||||||
At or for the Year Ended December 31, 2021 | |||||||||||||||||||||||||||||
Interest income | $ | 1,003 | $ | — | $ | — | $ | 2 | $ | 1,005 | |||||||||||||||||||
Interest expense | 86 | — | — | 12 | 98 | ||||||||||||||||||||||||
Net interest income | 917 | — | — | (10) | 907 | ||||||||||||||||||||||||
Provision for credit losses | (1) | — | — | 2 | 1 | ||||||||||||||||||||||||
Non-interest income | 251 | 61 | 24 | (6) | 330 | ||||||||||||||||||||||||
Non-interest expense (1) | 653 | 39 | 21 | 8 | 721 | ||||||||||||||||||||||||
Amortization of intangibles | 11 | — | 1 | — | 12 | ||||||||||||||||||||||||
Income tax expense (benefit) | 100 | 5 | — | (7) | 98 | ||||||||||||||||||||||||
Net income (loss) | 405 | 17 | 2 | (19) | 405 | ||||||||||||||||||||||||
Total assets | 39,396 | 37 | 34 | 46 | 39,513 | ||||||||||||||||||||||||
Total intangibles | 2,268 | 9 | 27 | — | 2,304 | ||||||||||||||||||||||||
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 |
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, 2022 | |||||||||||||||||||||||
Assets Measured at Fair Value | |||||||||||||||||||||||
Debt securities available for sale | |||||||||||||||||||||||
U.S. Treasury | $ | 257 | $ | — | $ | — | $ | 257 | |||||||||||||||
U.S. government agencies | — | 108 | — | 108 | |||||||||||||||||||
U.S. government-sponsored entities | — | 262 | — | 262 | |||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||
Agency mortgage-backed securities | — | 1,232 | — | 1,232 | |||||||||||||||||||
Agency collateralized mortgage obligations | — | 972 | — | 972 | |||||||||||||||||||
Commercial mortgage-backed securities | — | 395 | — | 395 | |||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | — | 29 | — | 29 | |||||||||||||||||||
Other debt securities | — | 20 | — | 20 | |||||||||||||||||||
Total debt securities available for sale | 257 | 3,018 | — | 3,275 | |||||||||||||||||||
Loans held for sale | — | 91 | — | 91 | |||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Trading | — | 95 | — | 95 | |||||||||||||||||||
Not for trading | — | 1 | — | 1 | |||||||||||||||||||
Total derivative financial instruments | — | 96 | — | 96 | |||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | 257 | $ | 3,205 | $ | — | $ | 3,462 | |||||||||||||||
Liabilities Measured at Fair Value | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Trading | $ | — | $ | 396 | $ | — | $ | 396 | |||||||||||||||
Not for trading | — | 3 | 12 | 15 | |||||||||||||||||||
Total derivative financial instruments | — | 399 | 12 | 411 | |||||||||||||||||||
Total liabilities measured at fair value on a recurring basis | $ | — | $ | 399 | $ | 12 | $ | 411 |
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Assets Measured at Fair Value | |||||||||||||||||||||||
Debt securities available for sale | |||||||||||||||||||||||
U.S. Treasury | $ | 204 | $ | — | $ | — | $ | 204 | |||||||||||||||
U.S. government agencies | — | 155 | — | 155 | |||||||||||||||||||
U.S. government-sponsored entities | — | 192 | — | 192 | |||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||
Agency mortgage-backed securities | — | 1,357 | — | 1,357 | |||||||||||||||||||
Agency collateralized mortgage obligations | — | 1,186 | — | 1,186 | |||||||||||||||||||
Commercial mortgage-backed securities | — | 297 | — | 297 | |||||||||||||||||||
States of the U.S. and political subdivisions (municipals) | — | 33 | — | 33 | |||||||||||||||||||
Other debt securities | — | 2 | — | 2 | |||||||||||||||||||
Total debt securities available for sale | 204 | 3,222 | — | 3,426 | |||||||||||||||||||
Loans held for sale | — | 269 | — | 269 | |||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Trading | — | 174 | — | 174 | |||||||||||||||||||
Not for trading | — | 2 | 9 | 11 | |||||||||||||||||||
Total derivative financial instruments | — | 176 | 9 | 185 | |||||||||||||||||||
Total assets measured at fair value on a recurring basis | $ | 204 | $ | 3,667 | $ | 9 | $ | 3,880 | |||||||||||||||
Liabilities Measured at Fair Value | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Trading | $ | — | $ | 44 | $ | — | $ | 44 | |||||||||||||||
Not for trading | — | 1 | — | 1 | |||||||||||||||||||
Total derivative financial instruments | — | 45 | — | 45 | |||||||||||||||||||
Total liabilities measured at fair value on a recurring basis | $ | — | $ | 45 | $ | — | $ | 45 |
(in millions) | Other Debt Securities | Interest Rate Lock Commitments | Total | ||||||||||||||
Year Ended December 31, 2022 | |||||||||||||||||
Balance at beginning of period | $ | — | $ | 9 | $ | 9 | |||||||||||
Purchases, issuances, sales and settlements: | |||||||||||||||||
Purchases | 2 | — | 2 | ||||||||||||||
Settlements | (1) | (9) | (10) | ||||||||||||||
Transfers from Level 3 | (1) | — | (1) | ||||||||||||||
Balance at end of period | $ | — | $ | — | $ | — | |||||||||||
Year Ended December 31, 2021 | |||||||||||||||||
Balance at beginning of period | $ | — | $ | 24 | $ | 24 | |||||||||||
Purchases, issuances, sales and settlements: | |||||||||||||||||
Issuances | — | 9 | 9 | ||||||||||||||
Settlements | — | (24) | (24) | ||||||||||||||
Balance at end of period | $ | — | $ | 9 | $ | 9 |
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Collateral dependent loans | $ | — | $ | — | $ | 34 | $ | 34 | |||||||||||||||
Other assets - MSRs | — | — | — | — | |||||||||||||||||||
Other assets - SBA servicing asset | — | — | 2 | 2 | |||||||||||||||||||
Other real estate owned | — | — | 3 | 3 | |||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Collateral dependent loans | $ | — | $ | — | $ | 20 | $ | 20 | |||||||||||||||
Other assets - MSRs | — | — | 10 | 10 | |||||||||||||||||||
Other assets - SBA servicing asset | — | — | 3 | 3 | |||||||||||||||||||
Other real estate owned | — | — | 2 | 2 |
Fair Value Measurements | |||||||||||||||||||||||||||||
(in millions) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,674 | $ | 1,674 | $ | 1,674 | $ | — | $ | — | |||||||||||||||||||
Debt securities available for sale | 3,275 | 3,275 | 257 | 3,018 | — | ||||||||||||||||||||||||
Debt securities held to maturity | 4,087 | 3,687 | — | 3,687 | — | ||||||||||||||||||||||||
Net loans and leases, including loans held for sale | 29,977 | 29,008 | — | 91 | 28,917 | ||||||||||||||||||||||||
Loan servicing rights | 55 | 71 | — | — | 71 | ||||||||||||||||||||||||
Derivative assets | 96 | 96 | — | 96 | — | ||||||||||||||||||||||||
Accrued interest receivable | 126 | 126 | 126 | — | — | ||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||
Deposits | 34,770 | 34,673 | 31,158 | 3,515 | — | ||||||||||||||||||||||||
Short-term borrowings | 1,372 | 1,369 | 1,369 | — | — | ||||||||||||||||||||||||
Long-term borrowings | 1,093 | 1,061 | — | — | 1,061 | ||||||||||||||||||||||||
Derivative liabilities | 411 | 411 | — | 399 | 12 | ||||||||||||||||||||||||
Accrued interest payable | 31 | 31 | 31 | — | — | ||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 3,493 | $ | 3,493 | $ | 3,493 | $ | — | $ | — | |||||||||||||||||||
Debt securities available for sale | 3,426 | 3,426 | 204 | 3,222 | — | ||||||||||||||||||||||||
Debt securities held to maturity | 3,463 | 3,506 | — | 3,506 | — | ||||||||||||||||||||||||
Net loans and leases, including loans held for sale | 24,919 | 24,518 | — | 269 | 24,249 | ||||||||||||||||||||||||
Loan servicing rights | 47 | 49 | — | — | 49 | ||||||||||||||||||||||||
Derivative assets | 185 | 185 | — | 176 | 9 | ||||||||||||||||||||||||
Accrued interest receivable | 76 | 76 | 76 | — | — | ||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||
Deposits | 31,726 | 31,725 | 28,867 | 2,858 | — | ||||||||||||||||||||||||
Short-term borrowings | 1,536 | 1,536 | 1,536 | — | — | ||||||||||||||||||||||||
Long-term borrowings | 682 | 704 | — | — | 704 | ||||||||||||||||||||||||
Derivative liabilities | 45 | 45 | — | 45 | — | ||||||||||||||||||||||||
Accrued interest payable | 10 | 10 | 10 | — | — |
Balance Sheets (in millions) December 31 | 2022 | 2021 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 662 | $ | 295 | |||||||
Other assets | 21 | 15 | |||||||||
Investment in bank subsidiary | 5,762 | 5,246 | |||||||||
Investments in and advances to non-bank subsidiaries | 481 | 461 | |||||||||
Total Assets | $ | 6,926 | $ | 6,017 | |||||||
Liabilities | |||||||||||
Other liabilities | $ | 45 | $ | 41 | |||||||
Advances from affiliates | 197 | 197 | |||||||||
Long-term borrowings | 1,023 | 621 | |||||||||
Subordinated notes: | |||||||||||
Short-term | 7 | 7 | |||||||||
Long-term | 1 | 1 | |||||||||
Total Liabilities | 1,273 | 867 | |||||||||
Stockholders’ Equity | 5,653 | 5,150 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 6,926 | $ | 6,017 |
Statements of Income (in millions) Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
Income | |||||||||||||||||
Dividend income from subsidiaries: | |||||||||||||||||
Bank | $ | 254 | $ | 215 | $ | 300 | |||||||||||
Non-bank | 6 | 5 | 4 | ||||||||||||||
260 | 220 | 304 | |||||||||||||||
Interest income | 16 | 13 | 6 | ||||||||||||||
Total Income | 276 | 233 | 310 | ||||||||||||||
Expenses | |||||||||||||||||
Interest expense | 34 | 25 | 25 | ||||||||||||||
Other expenses | 17 | 17 | 18 | ||||||||||||||
Total Expenses | 51 | 42 | 43 | ||||||||||||||
Income Before Taxes and Equity in Undistributed Income of Subsidiaries | 225 | 191 | 267 | ||||||||||||||
Income tax benefit | 9 | 7 | 7 | ||||||||||||||
234 | 198 | 274 | |||||||||||||||
Equity in undistributed income (loss) of subsidiaries: | |||||||||||||||||
Bank | 200 | 207 | 15 | ||||||||||||||
Non-bank | 5 | — | (3) | ||||||||||||||
Net Income | $ | 439 | $ | 405 | $ | 286 |
Statements of Cash Flows (in millions) Year Ended December 31 | 2022 | 2021 | 2020 | ||||||||||||||
Operating Activities | |||||||||||||||||
Net income | $ | 439 | $ | 405 | $ | 286 | |||||||||||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||||||||||
Undistributed earnings from subsidiaries | (203) | (207) | (12) | ||||||||||||||
Other, net | — | (2) | 13 | ||||||||||||||
Net cash flows provided by operating activities | 236 | 196 | 287 | ||||||||||||||
Investing Activities | |||||||||||||||||
Net increase in advances to subsidiaries | (18) | (78) | — | ||||||||||||||
Payment for further investment in subsidiaries | 3 | (12) | (270) | ||||||||||||||
Net cash received in business combinations | 9 | — | — | ||||||||||||||
Net cash flows used in investing activities | (6) | (90) | (270) | ||||||||||||||
Financing Activities | |||||||||||||||||
Decrease in long-term debt | (3) | (2) | (4) | ||||||||||||||
Increase in long-term debt | 351 | 2 | 302 | ||||||||||||||
Other, net | (32) | (27) | (21) | ||||||||||||||
Cash dividends paid: | |||||||||||||||||
Preferred stock | (8) | (8) | (8) | ||||||||||||||
Common stock | (171) | (156) | (157) | ||||||||||||||
Net cash flows provided by (used in) financing activities | 137 | (191) | 112 | ||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 367 | (85) | 129 | ||||||||||||||
Cash and cash equivalents at beginning of year | 295 | 380 | 251 | ||||||||||||||
Cash and Cash Equivalents at End of Year | $ | 662 | $ | 295 | $ | 380 | |||||||||||
Cash paid during the year for: | |||||||||||||||||
Interest | $ | 34 | $ | 25 | $ | 26 |
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 | 4,821,182 | (1) | n/a | 9,877,023 | (2) | ||||||||||||||||||
Equity compensation plans not approved by security holders | 138,381 | (3) | $ | 9.32 | n/a |
Exhibit Number | Description | |||||||
2.1. | ||||||||
2.2. | ||||||||
2.3 | ||||||||
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. | ||||||||
10.15A. | ||||||||
10.15B. | ||||||||
10.16. | ||||||||
10.17. | ||||||||
10.18. | ||||||||
10.19. | ||||||||
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 24, 2023 | ||||||
Vincent J. Delie, Jr. | (Principal Executive Officer) | |||||||
/s/ Vincent J. Calabrese, Jr. | Chief Financial Officer | February 24, 2023 | ||||||
Vincent J. Calabrese, Jr. | (Principal Financial Officer) | |||||||
/s/ James L. Dutey | Corporate Controller and Senior Vice President | February 24, 2023 | ||||||
James L. Dutey | (Principal Accounting Officer) | |||||||
/s/ Pamela A. Bena | Director | February 24, 2023 | ||||||
Pamela A. Bena | ||||||||
/s/ William B. Campbell | Director | February 24, 2023 | ||||||
William B. Campbell | ||||||||
/s/ James D. Chiafullo | Director | February 24, 2023 | ||||||
James D. Chiafullo | ||||||||
/s/ Mary Jo Dively | Director | February 24, 2023 | ||||||
Mary Jo Dively | ||||||||
/s/ David J. Malone | Director | February 24, 2023 | ||||||
David J. Malone | ||||||||
/s/ Frank C. Mencini | Director | February 24, 2023 | ||||||
Frank C. Mencini | ||||||||
/s/ David L. Motley | Director | February 24, 2023 | ||||||
David L. Motley | ||||||||
/s/ Heidi A. Nicholas | Director | February 24, 2023 | ||||||
Heidi A. Nicholas | ||||||||
/s/ John S. Stanik | Director | February 24, 2023 | ||||||
John S. Stanik | ||||||||
/s/ William J. Strimbu | Director | February 24, 2023 | ||||||
William J. Strimbu |
Relative ROATCE Percentile Ranking | Payout as a Percentage of Award Amount* | ||||
Threshold Level - 25th Relative ROATCE percentile | 25% of Award Amount | ||||
Target Level - 50th Relative ROATCE percentile | 100% of Award Amount | ||||
Maximum Level - 75th Relative ROATCE percentile or higher | 175% of Award Amount |
Relative TSR Percentile Ranking | Multiplier to ROATCE Payout** | ||||
75th Relative TSR Percentile or higher | 125% | ||||
50th Relative TSR Percentile | 100% | ||||
25th Relative TSR Percentile or lower | 75% |
F.N.B. CORPORATION | PARTICIPANT | |||||||
Name: Vincent J. Delie, Jr. | Name: | |||||||
Title: Chairman, President and C.E.O. |
Accelerated Vesting Event | Award/Calculated Amount | Vesting Date | ||||||
1. Death | RSUs: 100% vesting of the Award Amount Performance Units: Prorated vesting3 of the Calculated Amount | RSUs: Participant’s date of death Performance Units: The Vesting Date, as defined on the Agreement Cover Page | ||||||
2. Normal Retirement and Early Retirement (defined in the Plan as 55 years old with 5 years of service, subject to Article 8 of the Plan) | 100% vesting of the Calculated Amount | The Vesting Date, as defined on the Agreement Cover Page | ||||||
3. Disability | Prorated vesting3 of the Calculated Amount | The Vesting Date, as defined on the Agreement Cover Page | ||||||
4. Change in Control of F.N.B. Corporation | For Performance Period ending after effective date of Change in Control: the Calculated Amount is determined based on the greater of target and actual performance for all performance measures, including TSR, attained as of the effective date of the Change in Control. For Performance Period ending after definitive agreement and before effective date of Change in Control: the Calculated Amount is determined based on no less than actual performance for all performance measures, except that TSR may be determined by the Committee in its discretion, including TSR from the date of signing the definitive agreement. | Accelerated Vesting occurs on the date of termination of Service by the surviving company without Cause, as defined in the Plan, or by the Participant for Good Reason4 within the twenty-four (24) month period following the Change in Control or, if longer, the duration of the original Performance Period. If termination of Service does not occur as outlined above, the RSUs and Performance Units remain subject to time-based vesting for the remainder of the original Performance Period at an amount equal to the Calculated Amount. |
Relative ICG Growth Percentile Ranking | Payout as a Percentage of Award Amount* | ||||
Threshold Level - 25th Relative ICG Growth percentile | 25% of Award Amount | ||||
Target Level - 50th Relative ICG Growth percentile | 100% of Award Amount | ||||
Maximum Level - 75th Relative ICG Growth percentile or higher | 175% of Award Amount |
Relative TSR Percentile Ranking | Multiplier to ICG Growth Payout** | ||||
75th Relative TSR Percentile or higher | 125% | ||||
50th Relative TSR Percentile | 100% | ||||
25th Relative TSR Percentile or lower | 75% |
F.N.B. CORPORATION | PARTICIPANT | |||||||
Name: Vincent J. Delie, Jr. | Name: | |||||||
Title: Chairman, President and C.E.O. |
Accelerated Vesting Event | Award/Calculated Amount | Vesting Date | ||||||
1. Death | RSUs: 100% vesting of the Award Amount Performance Units: Prorated vesting3 of the Calculated Amount | RSUs: Participant’s date of death Performance Units: The Vesting Date, as defined on the Agreement Cover Page | ||||||
2. Normal Retirement and Early Retirement (defined in the Plan as 55 years old with 5 years of service, subject to Article 8 of the Plan) | 100% vesting of the Calculated Amount | The Vesting Date, as defined on the Agreement Cover Page | ||||||
3. Disability | Prorated vesting3 of the Calculated Amount | The Vesting Date, as defined on the Agreement Cover Page | ||||||
4. Change in Control of F.N.B. Corporation | For Performance Period ending after effective date of Change in Control: the Calculated Amount is determined based on the greater of target and actual performance for all performance measures, including TSR, attained as of the effective date of the Change in Control. For Performance Period ending after definitive agreement and before effective date of Change in Control: the Calculated Amount is determined based on no less than actual performance for all performance measures, except that TSR may be determined by the Committee in its discretion, including TSR from the date of signing the definitive agreement. | Accelerated Vesting occurs on the date of termination of Service by the surviving company without Cause, as defined in the Plan, or by the Participant for Good Reason4 within the twenty-four (24) month period following the Change in Control or, if longer, the duration of the original Performance Period. If termination of Service does not occur as outlined above, the RSUs and Performance Units remain subject to time-based vesting for the remainder of the original Performance Period at an amount equal to the Calculated Amount. |
Grant Amount: | _____ Restricted Stock Units | ||||
Vesting of Installment Amounts: | Subject to the acceleration provision described in this Agreement or the Plan (defined below), the Grant Amount, and any Dividend Equivalents (defined below), will vest on a pro rata basis over a three-year restricted period (each, an “Installment”) beginning as of the Grant Date, with one-third of the Grant Amount vesting respectively on each of the following dates (each a “Scheduled Vesting Date”):1 | ||||
Installment One | Scheduled Vesting Date: ______________ | ||||
Installment Two | Scheduled Vesting Date: ______________ | ||||
Installment Three | Scheduled Vesting Date: ______________ | ||||
Source of Restricted Stock Units: | F.N.B. Corporation 2022 Incentive Compensation Plan, as amended (the “Plan”) |
F.N.B. CORPORATION __________________________ Name: Vincent J. Delie, Jr. Title: Chairman, President and C.E.O. | PARTICIPANT ___________________________________ Name: |
Accelerated Vesting Event | Vested Amount | Date Installments Become Payable | ||||||
1. Death | 100% vesting of the Grant Amount | Participant’s date of death | ||||||
2. Normal Retirement | 100% vesting of the Grant Amount | On the remaining Scheduled Vesting Date(s) for each Installment | ||||||
4. Early Retirement (defined in the Plan as 55 years old with 5 years of service, subject to Article 8 of the Plan) | 100% vesting of the Grant Amount | On the remaining Scheduled Vesting Date(s) for each Installment | ||||||
5. Disability | 100% vesting of the Grant Amount | On the remaining Scheduled Vesting Date(s) for each Installment | ||||||
6. Change in Control of F.N.B. Corporation | 100% vesting of Grant Amount | Accelerated Vesting occurs on the date of termination of Service by the surviving company without Cause, as defined in the Plan, or by the Participant for Good Reason3 within the twenty-four (24) month period following the Change in Control or, if longer, the latest remaining Vesting Date. If termination of Service does not occur as outlined above, the RSUs will vest on the remaining Scheduled Vesting Date(s) for each Installment. | ||||||
3 “Good Reason” shall have the meaning set forth in any employment agreement or other written agreement between the Participant and F.N.B. If none, then “Good Reason” shall mean: (i) a material reduction in the Participant’s base salary, target short-term incentive opportunity, participation in employee benefit plan, or participation in long-term incentive compensation at the same level; (ii) the relocation of the Participant’s principal place of employment to a location more than fifty (50) miles from Participant’s principal place of employment immediately prior to the Accelerated Vesting event; (iii) a materially adverse reduction in Participant’s position, duties and responsibilities; or (iv) a material diminution in the budget over which the employee has control; in each case, without the prior written consent of the Participant, and only if the Participant provides the surviving company with written objection to the event within thirty (30) days following the occurrence thereof, the surviving company does not reverse or otherwise cure the event within thirty (30) days of receiving that written objection and the Participant resigns the Participant’s employment within sixty (60) days following the expiration of that cure period. |
7. Bank Sale4 | 100% vesting of the Grant Amount | Accelerated Vesting occurs on the date of termination of Service by the surviving company without Cause, as defined in the Plan, or by the Participant for Good Reason3 within the twenty-four (24) month period following the Bank Sale or, if longer, the latest remaining Vesting Date. If termination of Service does not occur as outlined above, the RSUs will vest on the remaining Scheduled Vesting Date(s) for each Installment. | ||||||
8. Non-Bank Sale5 | Pro-rated vesting6 of the Grant Amount | Accelerated Vesting occurs on the date of termination of Service by the surviving company without Cause, as defined in the Plan, or by the Participant for Good Reason3 within the twenty-four (24) month period following the Non-Bank Sale or, if longer, the latest remaining Vesting Date. If termination of Service does not occur as outlined above, the RSUs will vest, in full, on the remaining Scheduled Vesting Date(s) for each Installment. |
NAME | INCORPORATED | |||||||||||||
1) | First National Bank of Pennsylvania | United States | ||||||||||||
2) | First National Insurance Agency, LLC | Delaware |
Date: | February 24, 2023 | /s/ Vincent J. Delie, Jr. | ||||||
Vincent J. Delie, Jr. | ||||||||
Chairman, President and Chief Executive Officer |
Date: | February 24, 2023 | /s/ Vincent J. Calabrese, Jr. | ||||||
Vincent J. Calabrese, Jr. | ||||||||
Chief Financial Officer |
Date: | February 24, 2023 | /s/ Vincent J. Delie, Jr. | ||||||
Vincent J. Delie, Jr. | ||||||||
Chairman, President and Chief Executive Officer |
Date: | February 24, 2023 | /s/ Vincent J. Calabrese, Jr. | ||||||
Vincent J. Calabrese, Jr. | ||||||||
Chief Financial Officer |