Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-31940 | |
Entity Registrant Name | FNB CORP/PA/ | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 25-1255406 | |
Entity Address, Address Line One | One North Shore Center, | |
Entity Address, Address Line Two | 12 Federal Street, | |
Entity Address, City or Town | Pittsburgh, | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15212 | |
City Area Code | 800 | |
Local Phone Number | 555-5455 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 358,828,542 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000037808 | |
Current Fiscal Year End Date | --12-31 | |
New York Stock Exchange | Common Stock, par value $0.01 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | FNB | |
Security Exchange Name | NYSE | |
New York Stock Exchange | Depositary Shares each representing 1/40th interest in a share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares each representing 1/40th interest in a share of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E | |
Trading Symbol | FNBPrE | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and due from banks | $ 409 | $ 443 | |
Interest-bearing deposits with banks | 1,228 | 1,231 | |
Cash and Cash Equivalents | 1,637 | 1,674 | |
Debt securities available for sale (amortized cost of $3,520 and $3,622; allowance for credit losses of $0 and $0) | 3,145 | 3,275 | |
Debt securities held to maturity (fair value of $3,403 and $3,687; allowance for credit losses of $0 and $0) | 3,922 | 4,087 | |
Loans held for sale (includes $92 and $91 measured at fair value) | [1] | 110 | 124 |
Loans and leases, net of unearned income of $87 and $69 (includes $40 and $12 measured at fair value) | [1] | 32,151 | 30,255 |
Allowance for credit losses on loans and leases | (401) | (402) | |
Net Loans and Leases | 31,750 | 29,853 | |
Premises and equipment, net | 460 | 432 | |
Goodwill | 2,477 | 2,477 | |
Core deposit and other intangible assets, net | 74 | 89 | |
Bank owned life insurance | 660 | 653 | |
Other assets | 1,261 | 1,061 | |
Total Assets | 45,496 | 43,725 | |
Liabilities | |||
Non-interest-bearing demand | 10,704 | 11,916 | |
Interest-bearing demand | 14,530 | 15,100 | |
Savings | 3,588 | 4,142 | |
Certificates and other time deposits | 5,793 | 3,612 | |
Total Deposits | 34,615 | 34,770 | |
Short-term borrowings | 2,066 | 1,372 | |
Long-term borrowings | 1,968 | 1,093 | |
Other liabilities | 953 | 837 | |
Total Liabilities | 39,602 | 38,072 | |
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 – 374,939,004 and 374,907,245 shares | 4 | 4 | |
Additional paid-in capital | 4,689 | 4,696 | |
Retained earnings | 1,664 | 1,370 | |
Accumulated other comprehensive loss | (382) | (357) | |
Treasury stock – 16,110,462 and 14,437,135 shares at cost | (188) | (167) | |
Total Stockholders’ Equity | 5,894 | 5,653 | |
Total Liabilities and Stockholders’ Equity | $ 45,496 | $ 43,725 | |
[1]Amount represents loans for which we have elected the fair value option. See Note 19. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | |
Statement of Financial Position [Abstract] | |||
Debt securities available for sale, amortized cost | $ 3,520,000,000 | $ 3,622,000,000 | |
Debt securities available for sale, allowance for credit losses | 0 | 0 | |
Debt securities held-to-maturity, fair value | 3,403,000,000 | 3,687,000,000 | |
Debt securities held to maturity, allowance for credit losses | 300,000 | 230,000 | |
Loans held for sale, fair value | 92,000,000 | 91,000,000 | [1] |
Loans and leases, unearned income | 87,000,000 | 69,000,000 | |
Loans and leases, unearned income fair value | $ 40,000,000 | $ 12,000,000 | |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Preferred stock, liquidation preference per share (USD per share) | $ 1,000 | $ 1,000 | |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | |
Preferred stock, shares issued (in shares) | 110,877 | 110,877 | |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | |
Common stock, shares issued (in shares) | 374,939,004 | 374,907,245 | |
Treasury stock, shares (in shares) | 16,110,462 | 14,437,135 | |
[1]Amount represents loans for which we have elected the fair value option. See Note 19. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest Income | ||||
Loans and leases, including fees | $ 455 | $ 297 | $ 1,278 | $ 760 |
Securities: | ||||
Taxable | 38 | 31 | 109 | 82 |
Tax-exempt | 7 | 7 | 21 | 20 |
Other | 13 | 8 | 33 | 15 |
Total Interest Income | 513 | 343 | 1,441 | 877 |
Interest Expense | ||||
Deposits | 139 | 31 | 335 | 54 |
Short-term borrowings | 23 | 6 | 55 | 17 |
Long-term borrowings | 25 | 9 | 59 | 21 |
Total Interest Expense | 187 | 46 | 449 | 92 |
Net Interest Income | 326 | 297 | 992 | 785 |
Provision for credit losses | 25 | 12 | 58 | 36 |
Net Interest Income After Provision for Credit Losses | 301 | 285 | 934 | 749 |
Non-Interest Income | ||||
Service charges | 35 | 36 | 101 | 102 |
Trust services | 11 | 10 | 32 | 30 |
Insurance commissions and fees | 5 | 6 | 19 | 20 |
Securities commissions and fees | 7 | 6 | 21 | 18 |
Capital markets income | 7 | 10 | 20 | 25 |
Mortgage banking operations | 4 | 5 | 14 | 18 |
Dividends on non-marketable equity securities | 5 | 3 | 15 | 8 |
Bank owned life insurance | 3 | 2 | 9 | 9 |
Other | 4 | 5 | 10 | 13 |
Total Non-Interest Income | 81 | 83 | 241 | 243 |
Non-Interest Expense | ||||
Salaries and employee benefits | 114 | 107 | 348 | 323 |
Net occupancy | 18 | 16 | 52 | 50 |
Equipment | 24 | 20 | 67 | 56 |
Amortization of intangibles | 5 | 3 | 15 | 10 |
Outside services | 21 | 19 | 61 | 53 |
Marketing | 5 | 3 | 13 | 11 |
FDIC insurance | 8 | 5 | 23 | 15 |
Bank shares and franchise taxes | 4 | 4 | 12 | 12 |
Merger-related | 0 | 2 | 2 | 33 |
Other | 19 | 16 | 57 | 52 |
Total Non-Interest Expense | 218 | 195 | 650 | 615 |
Income Before Income Taxes | 164 | 173 | 525 | 377 |
Income taxes | 19 | 35 | 91 | 77 |
Net Income | 145 | 138 | 434 | 300 |
Preferred stock dividends | 2 | 2 | 6 | 6 |
Net income available to common stockholders | 143 | 136 | 428 | 294 |
Net income available to common stockholders | $ 143 | $ 136 | $ 428 | $ 294 |
Earnings per Common Share | ||||
Basic (USD per share) | $ 0.40 | $ 0.39 | $ 1.19 | $ 0.84 |
Diluted (USD per share) | $ 0.40 | $ 0.38 | $ 1.18 | $ 0.83 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 145 | $ 138 | $ 434 | $ 300 |
Securities available for sale: | ||||
Unrealized losses arising during the period, net of tax benefit of $(7), $(33), $(6) and $(84) | (26) | (116) | (22) | (294) |
Derivative instruments: | ||||
Unrealized losses arising during the period, net of tax benefit of $(2), $(4), $(5) and $(9) | (7) | (13) | (17) | (30) |
Reclassification adjustment for gains included in net income, net of tax expense of $2, $1, $4 and $2 | 6 | 2 | 13 | 6 |
Pension and postretirement benefit obligations: | ||||
Unrealized gains arising during the period, net of tax expense of $0, $0, $0 and $0 | 0 | 1 | 1 | 2 |
Other Comprehensive Income (Loss) | (27) | (126) | (25) | (316) |
Comprehensive Income (Loss) | $ 118 | $ 12 | $ 409 | $ (16) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized losses arising during the period, tax benefit | $ (7) | $ (33) | $ (6) | $ (84) |
Unrealized losses arising during the period, tax benefit | (2) | (4) | (5) | (9) |
Reclassification adjustment for gains included in net income, tax expense | 2 | 1 | 4 | 2 |
Unrealized gains arising during the period, tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balance at beginning of period at Dec. 31, 2021 | $ 5,150 | $ 107 | $ 3 | $ 4,109 | $ 1,110 | $ (62) | $ (117) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | (16) | 300 | (316) | ||||
Dividends declared: | |||||||
Preferred stock | (6) | (6) | |||||
Common stock | (129) | (129) | |||||
Issuance of common stock | (6) | 1 | (7) | ||||
Issuance of common stock - acquisitions | 443 | 1 | 442 | ||||
Repurchase of common stock | (43) | (43) | |||||
Restricted stock compensation | 13 | 13 | |||||
Balance at end of period at Sep. 30, 2022 | 5,406 | 107 | 4 | 4,565 | 1,275 | (378) | (167) |
Balance at beginning of period at Jun. 30, 2022 | 5,436 | 107 | 4 | 4,562 | 1,182 | (252) | (167) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | 12 | 138 | (126) | ||||
Dividends declared: | |||||||
Preferred stock | (2) | (2) | |||||
Common stock | (43) | (43) | |||||
Restricted stock compensation | 3 | 3 | |||||
Balance at end of period at Sep. 30, 2022 | 5,406 | 107 | 4 | 4,565 | 1,275 | (378) | (167) |
Balance at beginning of period at Dec. 31, 2022 | 5,653 | 107 | 4 | 4,696 | 1,370 | (357) | (167) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | 409 | 434 | (25) | ||||
Dividends declared: | |||||||
Preferred stock | (6) | (6) | |||||
Common stock | (130) | (130) | |||||
Issuance of common stock | (9) | (21) | (4) | 16 | |||
Repurchase of common stock | (37) | (37) | |||||
Restricted stock compensation | 14 | 14 | |||||
Balance at end of period at Sep. 30, 2023 | 5,894 | 107 | 4 | 4,689 | 1,664 | (382) | (188) |
Balance at beginning of period at Jun. 30, 2023 | 5,818 | 107 | 4 | 4,686 | 1,564 | (355) | (188) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | 118 | 145 | (27) | ||||
Dividends declared: | |||||||
Preferred stock | (2) | (2) | |||||
Common stock | (43) | (43) | |||||
Issuance of common stock | 1 | 1 | |||||
Restricted stock compensation | 2 | 2 | |||||
Balance at end of period at Sep. 30, 2023 | $ 5,894 | $ 107 | $ 4 | $ 4,689 | $ 1,664 | $ (382) | $ (188) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Preferred stock dividends per share (USD per share) | $ 18.13 | $ 18.13 | $ 54.39 | $ 54.39 |
Common stock dividends per share (USD per share) | $ 0.12 | $ 0.12 | $ 0.36 | $ 0.36 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities | ||
Net income | $ 434 | $ 300 |
Adjustments to reconcile net income to net cash flows provided by (used in) operating activities: | ||
Depreciation, amortization and accretion | 61 | 54 |
Provision for credit losses | 58 | 36 |
Deferred tax expense (benefit) | 3 | 9 |
Loans originated for sale | (839) | (836) |
Loans sold | 821 | 1,011 |
Net (gain) loss on sale of loans | (1) | (29) |
Net change in: | ||
Interest receivable | (32) | (19) |
Interest payable | 29 | 4 |
Bank owned life insurance, excluding purchases | (7) | (4) |
Other, net | (84) | 515 |
Net cash flows provided by operating activities | 443 | 1,041 |
Investing Activities | ||
Net change in loans and leases, excluding sales and transfers | (1,917) | (2,012) |
Debt securities available for sale: | ||
Purchases | (262) | (919) |
Sales | 0 | 287 |
Maturities/payments | 359 | 598 |
Debt securities held to maturity: | ||
Purchases | (104) | (845) |
Maturities/payments | 271 | 481 |
Increase in premises and equipment | (71) | (78) |
Net cash received in business acquisition | 0 | 75 |
Net cash flows used in investing activities | (1,724) | (2,413) |
Financing Activities | ||
Demand (non-interest bearing and interest bearing) and savings accounts | (2,335) | 517 |
Time deposits | 2,178 | (180) |
Short-term borrowings | 694 | (155) |
Proceeds from issuance of long-term borrowings | 1,226 | 367 |
Repayment of long-term borrowings | (351) | (223) |
Repurchases of common stock | (37) | (43) |
Cash dividends paid: | ||
Preferred stock | (6) | (6) |
Common stock | (130) | (129) |
Other, net | 5 | 7 |
Net cash flows provided by financing activities | 1,244 | 155 |
Net Decrease in Cash and Cash Equivalents | (37) | (1,217) |
Cash and cash equivalents at beginning of period | 1,674 | 3,493 |
Cash and Cash Equivalents at End of Period | $ 1,637 | $ 2,276 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONS F.N.B. Corporation, headquartered in Pittsburgh, Pennsylvania, is a diversified financial services company operating in seven states and the District of Columbia. Our market coverage spans several major metropolitan areas including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina; and Charleston, South Carolina. As of September 30, 2023, we had 346 branches throughout Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington D.C. and Virginia. We provide a full range of commercial banking, consumer banking and wealth management solutions through our subsidiary network which is led by our largest affiliate, FNBPA, founded in 1864. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, government banking, business credit, capital markets and lease financing. Consumer banking provides a full line of consumer banking products and services, including deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. Wealth management services include asset management, private banking and insurance. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Our accompanying Consolidated Financial Statements and these Notes to Consolidated Financial Statements (unaudited) include subsidiaries in which we have a controlling financial interest. We own and operate FNBPA, First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment Advisors, Inc., First National Insurance Agency, LLC, Bank Capital Services, LLC, F.N.B. Capital Corporation, LLC and Waubank Securities, LLC, and include results for each of these entities in the accompanying Consolidated Financial Statements. Companies in which we hold a controlling financial interest, or are a VIE in which we have the power to direct the activities of an entity that most significantly impact the entity’s economic performance and have an obligation to absorb losses or the right to receive benefits which could potentially be significant to the VIE, are consolidated. For a voting interest entity, a controlling financial interest is generally where we hold more than 50% of the outstanding voting shares. VIEs in which we do not hold the power to direct the activities of the entity that most significantly impact the entity’s economic performance or an obligation to absorb losses or the right to receive benefits which could potentially be significant to the VIE are not consolidated. Investments in companies that are not consolidated are accounted for using the equity method when we have the ability to exert significant influence or the cost method when we do not have the ability to exert significant influence. Investments in private investment partnerships that are accounted for under the equity method or the cost method are included in other assets and our proportional interest in the equity investments’ earnings are included in other non-interest income. Investment interests accounted for under the cost and equity methods are periodically evaluated for impairment. The accompanying interim unaudited Consolidated Financial Statements include all adjustments that are necessary, in the opinion of management, to fairly reflect our financial position and results of operations in accordance with GAAP. All significant intercompany balances and transactions have been eliminated. Events occurring subsequent to September 30, 2023 have been evaluated for potential recognition or disclosure in the Consolidated Financial Statements through the date of the filing of the Consolidated Financial Statements with the SEC. Certain information and Note disclosures normally included in Consolidated Financial Statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The interim operating results are not necessarily indicative of operating results we expect for the full year. These interim unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in our 2022 Annual Report on Form 10-K filed with the SEC on February 24, 2023. Use of Estimates Our accounting and reporting policies conform with GAAP. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements (unaudited). Actual results could materially differ from those estimates. Material estimates that are particularly susceptible to significant changes include the ACL, fair value of financial instruments, goodwill and other intangible assets, income taxes and deferred tax assets and litigation reserves, which are listed in the critical accounting estimates. For a detailed description of our significant accounting policies and critical accounting estimates, see Note 1, "Summary of Significant Accounting Policies" and the "Application of Critical Accounting Policies" section in the MD&A, both in our 2022 Annual Report on Form 10-K . |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS The following table summarizes accounting pronouncements issued by the FASB that we recently adopted or will be adopting in the future. TABLE 2.1 Standard Description Financial Statements Impact Tax Equity Investments ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method This Update expands the use of the proportional amortization method of accounting, previously only allowable for LIHTC investments, to equity investments in other tax credit structures that meet certain criteria. The Update also removed the specialized guidance for LIHTC investments that are not accounted for using the proportional amortization method or equity method and require that those investments are accounted for using Topic 321 regarding equity investments. This Update is to be applied using either a modified retrospective or a retrospective method and will be effective as of January 1, 2024. Early adoption of this Update is permitted. We plan to adopt this Update on January 1, 2024. The adoption of this Update is not expected to have a material impact on our consolidated financial statements. 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 entities to apply loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. The Update requires enhanced disclosures for certain loan modifications by creditors when a borrower is experiencing financial difficulty if the modification includes principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension, or a combination of those modification types. 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. We adopted this Update on January 1, 2023, on a prospective basis for all amendments. Adoption of this Update did not have a material impact on our consolidated financial statements. |
MERGERS AND ACQUISITIONS
MERGERS AND ACQUISITIONS | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
MERGERS AND ACQUISITIONS | MERGERS AND ACQUISITIONS Howard Bancorp, Inc. On January 22, 2022, we completed our acquisition of Howard, a bank holding company headquartered in Baltimore City, Maryland. The acquisition enhanced our presence in the Mid-Atlantic Region. Additionally, cost savings, efficiencies and other benefits were realized from the combined operations. On the acquisition date, Howard had assets with a net book value of approximately $2.4 billion, including $1.8 billion in both loans and deposits. The acquisition was valued at approximately $443 million and resulted in the issuance of 34,074,495 shares of our common stock in exchange for 18,930,329 shares of Howard common stock. We also acquired restricted stock units and the fully vested outstanding stock options of Howard. This merger was accounted for in accordance with the acquisition method of accounting. Fair values for all assets and liabilities are presented in Table 3.1. Determining the fair value of assets and liabilities is a complex process involving significant judgment regarding estimates and assumptions used to calculate fair values. We have completed the review of valuations for the acquired assets and liabilities. Goodwill related to the Howard acquisition was recorded in the Community Banking business segment and is not deductible for income tax purposes as the acquisition was accounted for as a tax-free exchange for tax purposes. We incurred merger expenses relating to the Howard acquisition of $30.6 million for the first nine months of 2022. We did not record any merger expenses relating to the Howard acquisition in 2023. Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. We consider various factors in connection with the identification of more-than-insignificant deterioration in credit, including but not limited to non-performing status, delinquency, risk ratings, TDR classification, FICO scores and other qualitative factors that indicate deterioration in credit quality since origination. For PCD loans and leases, the initial estimate of expected credit losses is recognized in the ACL on the date of acquisition using the same methodology as other loans and leases held-for-investment. As part of the Howard acquisition, we acquired PCD loans and leases of $186.9 million. We established an ACL at acquisition of $10.0 million with a corresponding gross-up to the amortized cost of the PCD loans and leases. The non-credit discount on the PCD loans and leases was $5.4 million and the Day 1 fair value was $171.5 million. The initial provision expense for non-PCD loans associated with the Howard acquisition was $19.1 million. We integrated the systems and the operating activities of Howard into FNB in February 2022. Due to that integration, it is impracticable to disclose the revenue from the Howard assets acquired and income before income taxes subsequent to the acquisition. UB Bancorp On December 9, 2022, we completed our acquisition of Union, a bank holding company based in Greenville, North Carolina. This acquisition further increases our presence in North Carolina and adds low-cost granular deposits which continue to be value accretive in the current economic environment. On the acquisition date, Union had assets with a net book value of approximately $1.1 billion, including $0.7 billion in loans and $1.0 billion in deposits. The acquisition was valued at approximately $126 million and resulted in the issuance of 9,672,691 shares of our common stock in exchange for 6,008,123 shares of Union common stock. This merger was accounted for in accordance with the acquisition method of accounting. Fair values for all assets and liabilities are presented in Table 3.1. Determining the fair value of assets and liabilities is a complex process involving significant judgment regarding estimates and assumptions used to calculate fair values. We have completed the review of valuations for the acquired assets and liabilities. Goodwill related to the Union acquisition was recorded in the Community Banking business segment and is not deductible for income tax purposes as the acquisition was accounted for as a tax-free exchange for tax purposes. We incurred merger expenses relating to the Union acquisition of $2.2 million for the first nine months of 2023. We recorded core deposit intangibles of $41 million which reflect the much higher cost of alternative funding given the higher interest rate environment at the time of acquisition. Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. We consider various factors in connection with the identification of more-than-insignificant deterioration in credit, including but not limited to non-performing status, delinquency, risk ratings, FICO scores and other qualitative factors that indicate deterioration in credit quality since origination. For PCD loans and leases, the initial estimate of expected credit losses is recognized in the ACL on the date of acquisition using the same methodology as other loans and leases held-for-investment. As part of the Union acquisition, we acquired PCD loans and leases of $36.9 million. We established an ACL at acquisition of $1.8 million with a corresponding gross-up to the amortized cost of the PCD loans and leases. The non-credit discount on the PCD loans and leases was $0.5 million and the Day 1 fair value was $34.7 million. The initial provision expense for non-PCD loans associated with the Union acquisition was $9.4 million. We integrated the systems and the operating activities of Union in December 2022. Due to that integration, it is impracticable to disclose the revenue from the Union assets acquired and income before income taxes subsequent to the acquisition. The following table summarizes the amounts recorded on the consolidated balance sheets as of the acquisition dates in conjunction with the Howard and Union acquisitions discussed above. TABLE 3.1 (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 59 Total identifiable assets acquired 2,351 1,077 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 88 Goodwill recognized $ 177 $ 38 |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost and fair value of AFS debt securities are presented in the table below. There was no ACL associated with the AFS portfolio at September 30, 2023 and December 31, 2022. Accrued interest receivable on AFS debt securities totaled $10.4 million at September 30, 2023 and $8.9 million at December 31, 2022, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets. Accordingly, we have excluded accrued interest receivable from both the fair value and the amortized cost basis of AFS debt securities. TABLE 4.1 (in millions) Amortized Gross Gross Fair Debt Securities AFS: September 30, 2023 U.S. Treasury $ 327 $ — $ (21) $ 306 U.S. government agencies 85 1 — 86 U.S. government-sponsored entities 323 — (20) 303 Residential mortgage-backed securities: Agency mortgage-backed securities 1,171 — (139) 1,032 Agency collateralized mortgage obligations 986 — (146) 840 Commercial mortgage-backed securities 565 — (44) 521 States of the U.S. and political subdivisions (municipals) 30 — (4) 26 Other debt securities 33 — (2) 31 Total debt securities AFS $ 3,520 $ 1 $ (376) $ 3,145 (in millions) Amortized Gross Gross Fair 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 The amortized cost and fair value of HTM debt securities are presented in the following table. The ACL for the HTM portfolio was $0.30 million and $0.23 million at September 30, 2023 and December 31, 2022, respectively. Accrued interest receivable on HTM debt securities totaled $13.4 million and $14.0 million at September 30, 2023 and December 31, 2022, respectively, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets. Accordingly, we have excluded accrued interest receivable from both the fair value and the amortized cost basis of HTM debt securities. TABLE 4.2 (in millions) Amortized Gross Gross Fair Debt Securities HTM: September 30, 2023 U.S. government agencies $ 1 $ — $ — $ 1 U.S. government-sponsored entities 93 — (1) 92 Residential mortgage-backed securities: Agency mortgage-backed securities 1,052 — (144) 908 Agency collateralized mortgage obligations 852 — (132) 720 Commercial mortgage-backed securities 891 — (68) 823 States of the U.S. and political subdivisions (municipals) 1,017 — (172) 845 Other debt securities 16 — (2) 14 Total debt securities HTM $ 3,922 $ — $ (519) $ 3,403 (in millions) Amortized Gross Gross Fair 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 There were no significant gross gains or gross losses realized on securities during the nine months ended September 30, 2023 or 2022. Unrealized losses on the AFS and HTM portfolios are due to the increase in market interest rates with 84.6% of these securities backed or sponsored by the U.S. government as of September 30, 2023. As of September 30, 2023, the amortized cost and fair value of debt securities, by contractual maturities, were as follows: TABLE 4.3 Available for Sale Held to Maturity (in millions) Amortized Fair Amortized Fair Due in one year or less $ 54 $ 54 $ 2 $ 2 Due after one year but within five years 655 612 140 136 Due after five years but within ten years 53 51 224 196 Due after ten years 36 35 761 618 798 752 1,127 952 Residential mortgage-backed securities: Agency mortgage-backed securities 1,171 1,032 1,052 908 Agency collateralized mortgage obligations 986 840 852 720 Commercial mortgage-backed securities 565 521 891 823 Total debt securities $ 3,520 $ 3,145 $ 3,922 $ 3,403 Actual maturities may differ from contractual terms because security issuers may have the right to call or prepay obligations with or without penalties. Periodic principal payments are received on residential mortgage-backed securities based on the payment patterns of the underlying collateral. Following is information relating to securities pledged: TABLE 4.4 (dollars in millions) September 30, December 31, Securities pledged (carrying value): To secure public deposits, trust deposits and for other purposes as required by law $ 5,995 $ 6,403 As collateral for short-term borrowings 281 348 Securities pledged as a percent of total securities 88.8 % 91.7 % Following are summaries of the fair values of AFS debt securities in an unrealized loss position for which an ACL has not been recorded, segregated by security type and length of time in a continuous loss position: TABLE 4.5 Less than 12 Months 12 Months or More Total (dollars in millions) # Fair Unrealized # Fair Unrealized # Fair Unrealized Debt Securities AFS September 30, 2023 U.S. Treasury — $ — $ — 6 $ 257 $ (21) 6 $ 257 $ (21) U.S. government agencies 5 24 — 8 15 — 13 39 — U.S. government-sponsored entities 2 50 — 10 253 (20) 12 303 (20) Residential mortgage-backed securities: Agency mortgage-backed securities 7 2 — 114 1,029 (139) 121 1,031 (139) Agency collateralized mortgage obligations — — — 71 840 (146) 71 840 (146) Commercial mortgage-backed securities 5 148 (3) 21 373 (41) 26 521 (44) States of the U.S. and political subdivisions (municipals) — — — 13 26 (4) 13 26 (4) Other debt securities 2 8 (1) 7 17 (1) 9 25 (2) Total 21 $ 232 $ (4) 250 $ 2,810 $ (372) 271 $ 3,042 $ (376) Less than 12 Months 12 Months or More Total (dollars in millions) # Fair Unrealized # Fair Unrealized # Fair Unrealized 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) We evaluated the AFS debt securities that were in an unrealized loss position at September 30, 2023. Based on the credit ratings and implied government guarantee for these securities, we concluded the loss position is temporary and caused by the significant movement of interest rates since 2022 and does not reflect any expected credit losses. We do not intend to sell these AFS debt securities and it is not more likely than not that we will be required to sell these securities before the recovery of their amortized cost basis. Credit Quality Indicators We use credit ratings and the most recent financial information to help evaluate the credit quality of our credit-related AFS and HTM securities portfolios. Management reviews the credit profile of each issuer on an annual basis, and more frequently as needed. Based on the nature of the issuers and current conditions, we have determined that securities backed by the UST, Fannie Mae, Freddie Mac, FHLB, Ginnie Mae, and the SBA have zero expected credit loss. Our municipal bond portfolio, with a carrying amount of $1.0 billion as of September 30, 2023 is highly rated with an average rating of AA and 100% of the portfolio having an A or better rating. All of the securities in the municipal portfolio are general obligation bonds. Geographically, municipal bonds support our primary footprint as 60% of the securities are from municipalities located in the primary states within which we conduct business. The average holding size of the securities in the municipal bond portfolio is $2.5 million. In addition to the strong stand-alone ratings, 61% of the municipal bonds have some formal credit enhancement (e.g., insurance) that strengthens the creditworthiness of the bond. The ACL on the HTM municipal bond portfolio is calculated on each bond using: • The bond’s underlying credit rating, time to maturity and exposure amount; • Credit enhancements that improve the bond’s credit rating (e.g., insurance); and • Moody’s U.S. Bond Defaults and Recoveries, 1970-2022 study. By using these components, we derive the expected credit loss on the HTM general obligation municipal bond portfolio. We further refine the expected credit loss by factoring in economic forecast data using our Commercial and Industrial Non-Manufacturing loan portfolio forecast adjustment as derived through our assessment of the loan portfolio as a proxy for our municipal bond portfolio. Our corporate bond portfolio, with a carrying amount of $47.0 million as of September 30, 2023 primarily consists of subordinated debentures of banks within our footprint. The average holding size of the securities in the corporate bond portfolio is $2.8 million. The ACL on the HTM corporate bond portfolio is calculated using: • The bond’s credit rating, time to maturity and exposure amount; • Moody’s Annual Default Study, 03/13/2023; and • Most recent financial statements. By using these components, we derive the expected credit loss on the HTM corporate bond portfolio. We further refine the expected credit loss by factoring in economic forecast data using our bank-wide loan portfolio forecast adjustment as derived through our assessment of the Bank's loan portfolio as a proxy for our corporate bond portfolio. For the year-to-date periods ending September 30, 2023 and 2022, we had no significant provision expense and no charge-offs or recoveries. The ACL on the HTM portfolio was $0.30 million, consisting of $0.06 million relating to the municipal bond portfolio and $0.24 million relating to other debt securities, as of September 30, 2023, and $0.07 million relating to the municipal bond portfolio and $0.16 million relating to other debt securities as of December 31, 2022. The AFS securities portfolios did not have an ACL at September 30, 2023 or December 31, 2022 and there were no securities that were past due or on non-accrual at either date. |
LOANS AND LEASES
LOANS AND LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
LOANS AND LEASES | LOANS AND LEASES Accrued interest receivable on loans and leases, which totaled $124.0 million at September 30, 2023 and $99.3 million at December 31, 2022, is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets for both periods and is not included in the following tables. Loans and Leases by Portfolio Segment Following is a summary of total loans and leases, net of unearned income: TABLE 5.1 (in millions) September 30, 2023 December 31, 2022 Commercial real estate $ 11,962 $ 11,526 Commercial and industrial 7,462 7,131 Commercial leases 562 519 Other 160 114 Total commercial loans and leases 20,146 19,290 Direct installment 2,754 2,784 Residential mortgages 6,434 5,297 Indirect installment 1,519 1,553 Consumer lines of credit 1,298 1,331 Total consumer loans 12,005 10,965 Total loans and leases, net of unearned income $ 32,151 $ 30,255 The remaining accretable discount included in the amortized cost of acquired loans was $46.7 million and $58.6 million at September 30, 2023 and December 31, 2022, respectively, which included $10.1 million and $30.9 million established for Howard and Union, respectively, at the time of acquisition. The loans and leases portfolio categories are comprised of the following types of loans, where in each case the LGD is dependent on the nature and value of the respective collateral: • Commercial real estate includes both owner-occupied and non-owner-occupied loans, including construction loans, secured by commercial properties where operational cash flows on owner-occupied properties or rents received by our borrowers from their tenant(s) on both a property and global basis are the primary default risk drivers, including rents paid by stand-alone business customers for owner-occupied properties; • Commercial and industrial includes loans to businesses that are not secured by real estate where the borrower's leverage and cash flows from operations are the primary default risk drivers; • Commercial leases consist of leases for new or used equipment where the borrower's cash flow from operations is the primary default risk driver; • Other is comprised primarily of credit cards and mezzanine loans where the borrower's cash flow from operations is the primary default risk driver; • Direct installment is comprised of fixed-rate, closed-end consumer loans for personal, family or household use, such as home equity loans and automobile loans where the primary default risk driver is the borrower's employment status and income; • Residential mortgages consist of conventional and jumbo mortgage loans, including construction loans, for 1-4 family properties where the primary default risk driver is the borrower's employment status and income; • Indirect installment is comprised of loans originated by approved third parties and underwritten by us, primarily automobile loans where the primary default risk driver is the borrower's employment status and income; and • Consumer lines of credit include home equity lines of credit and consumer lines of credit that are either unsecured or secured by collateral other than home equity where the primary default risk driver is the borrower's employment status and income. The loans and leases portfolio consists principally of loans to individuals and small- and medium-sized businesses within our primary market in seven states and the District of Columbia. Our primary market coverage spans several major metropolitan areas including: Pittsburgh, Pennsylvania; Baltimore, Maryland; Cleveland, Ohio; Washington, D.C.; Charlotte, Raleigh, Durham and the Piedmont Triad (Winston-Salem, Greensboro and High Point) in North Carolina; and Charleston, South Carolina. The following table shows occupancy information relating to commercial real estate loans: TABLE 5.2 (dollars in millions) September 30, December 31, Commercial real estate: Percent owner-occupied 29.0 % 30.2 % Percent non-owner-occupied 71.0 69.8 Credit Quality We monitor the credit quality of our loan portfolio using several performance measures based on payment activity and borrower performance. We use an internal risk rating assigned to a commercial loan or lease at origination, summarized below. TABLE 5.3 Rating Category Definition Pass in general, the condition of the borrower and the performance of the loan is satisfactory or better Special Mention in general, the condition of the borrower has deteriorated, requiring an increased level of monitoring Substandard in general, the condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate if deficiencies are not corrected Doubtful in general, the condition of the borrower has significantly deteriorated and the collection in full of both principal and interest is highly questionable or improbable The use of these internally assigned credit quality categories within the commercial loan and lease portfolio permits our use of transition matrices to establish a basis which is then impacted by quantitative inputs from our econometric model forecasts over the R&S period. Our internal credit risk grading system is based on past experiences with similarly graded loans and leases and conforms to regulatory categories. In general, loan and lease risk ratings within each category are reviewed on an ongoing basis according to our policy for each class of loans and leases. Each quarter, we analyze the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the commercial loan and lease portfolio. Loans and leases within the Pass credit category or that migrate toward the Pass credit category generally have a lower risk of loss compared to loans and leases that migrate toward the Substandard or Doubtful credit categories. Accordingly, we apply higher risk factors to Substandard and Doubtful credit categories. The following table summarizes the designated loan rating category by loan class including term loans on an amortized cost basis by origination year and year-to-date gross charge-offs by originating year: TABLE 5.4 September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total (in millions) COMMERCIAL Commercial Real Estate: Risk Rating: Pass $ 964 $ 2,043 $ 2,356 $ 1,513 $ 1,153 $ 2,825 $ 234 $ 11,088 Special Mention 1 74 37 131 99 216 7 565 Substandard 3 23 17 14 65 170 17 309 Total commercial real estate 968 2,140 2,410 1,658 1,317 3,211 258 11,962 Commercial real estate current period gross charge-offs — 0.1 0.2 — — 8.6 — 8.9 Commercial and Industrial: Risk Rating: Pass 1,240 1,464 930 667 460 584 1,650 6,995 Special Mention 12 9 69 3 18 38 33 182 Substandard 28 14 48 8 19 57 111 285 Total commercial and industrial 1,280 1,487 1,047 678 497 679 1,794 7,462 Commercial and industrial current period gross charge-offs 0.1 0.3 0.4 0.6 1.6 45.5 — 48.5 Commercial Leases: Risk Rating: Pass 177 142 89 54 29 45 — 536 Special Mention — — — — 1 — — 1 Substandard 7 3 5 7 2 1 — 25 Total commercial leases 184 145 94 61 32 46 — 562 Commercial leases current period gross charge-offs — — — — — — — — Other Commercial: Risk Rating: Pass 78 — — — — 9 73 160 Total other commercial 78 — — — — 9 73 160 Other commercial current period gross charge-offs — — — — — 3.3 — 3.3 Total commercial loans and leases 2,510 3,772 3,551 2,397 1,846 3,945 2,125 20,146 September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total (in millions) CONSUMER Direct Installment: Current 261 735 809 408 143 386 — 2,742 Past due — 1 1 1 — 9 — 12 Total direct installment 261 736 810 409 143 395 — 2,754 Direct installment current period gross charge-offs — 0.1 0.1 0.1 — 0.2 — 0.5 Residential Mortgages: Current 1,145 1,684 1,542 815 351 853 1 6,391 Past due 1 5 2 2 2 31 — 43 Total residential mortgages 1,146 1,689 1,544 817 353 884 1 6,434 Residential mortgages current period gross charge-offs — — — 0.1 — 0.6 — 0.7 Indirect Installment: Current 371 638 266 114 51 59 — 1,499 Past due 1 8 7 2 1 1 — 20 Total indirect installment 372 646 273 116 52 60 — 1,519 Indirect installment current period gross charge-offs 0.2 2.8 2.9 0.5 0.2 0.3 — 6.9 Consumer Lines of Credit: Current 31 64 15 2 2 119 1,050 1,283 Past due — — 1 — 1 12 1 15 Total consumer lines of credit 31 64 16 2 3 131 1,051 1,298 Consumer lines of credit current period gross charge-offs — — 0.1 — — 0.7 — 0.8 Total consumer loans 1,810 3,135 2,643 1,344 551 1,470 1,052 12,005 Total loans and leases $ 4,320 $ 6,907 $ 6,194 $ 3,741 $ 2,397 $ 5,415 $ 3,177 $ 32,151 Total charge-offs $ 0.3 $ 3.3 $ 3.7 $ 1.3 $ 1.8 $ 59.2 $ — $ 69.6 The following table summarizes the designated loan rating category by loan class including term loans on an amortized cost basis by origination year: TABLE 5.5 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 We use delinquency transition matrices within the consumer and other loan classes to establish the basis for the R&S forecast portion of the credit risk. Each month, management analyzes payment and volume activity, FICO scores and Debt-to-Income (DTI) scores and other external factors such as unemployment, to determine how consumer loans are performing. Non-Performing and Past Due The following tables provide an analysis of the aging of loans by class. TABLE 5.6 (in millions) 30-89 Days > 90 Days Past Due and Still Accruing Non- Total Current Total Non-accrual with No ACL September 30, 2023 Commercial real estate $ 15 $ — $ 44 $ 59 $ 11,903 $ 11,962 $ 20 Commercial and industrial 7 — 44 51 7,411 7,462 9 Commercial leases — — 1 1 561 562 — Other 1 — — 1 159 160 — Total commercial loans and leases 23 — 89 112 20,034 20,146 29 Direct installment 5 1 6 12 2,742 2,754 — Residential mortgages 29 4 10 43 6,391 6,434 — Indirect installment 16 2 2 20 1,499 1,519 — Consumer lines of credit 7 2 6 15 1,283 1,298 — Total consumer loans 57 9 24 90 11,915 12,005 — Total loans and leases $ 80 $ 9 $ 113 $ 202 $ 31,949 $ 32,151 $ 29 (in millions) 30-89 Days > 90 Days Past Due and Still Accruing Non- Total Current Total 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 Following is a summary of non-performing assets: TABLE 5.7 (dollars in millions) September 30, December 31, Non-accrual loans $ 113 $ 113 Total non-performing loans and leases 113 113 Other real estate owned 3 6 Total non-performing assets $ 116 $ 119 Asset quality ratios: Non-performing loans and leases / total loans and leases 0.35 % 0.37 % Non-performing assets plus 90 days or more past due / total loans and leases plus OREO 0.39 0.44 The carrying value of residential-secured consumer OREO held as a result of obtaining physical possession upon completion of a foreclosure or through completion of a deed in lieu of foreclosure amounted to $1.6 million at September 30, 2023 and $1.1 million at December 31, 2022. The recorded investment of residential-secured consumer OREO for which formal foreclosure proceedings are in process at September 30, 2023 and December 31, 2022 totaled $9.9 million and $11.8 million, respectively. Approximately $47.3 million of commercial loans are collateral dependent at September 30, 2023. Repayment is expected to be substantially made through the operation or sale of the collateral on the loan. These loans are primarily secured by business assets or commercial real estate. Loan Modifications During the period, there are loans whose contractual terms have been modified in a manner that grants a concession to a borrower experiencing financial difficulties. These modifications typically result from loss mitigation activities and could include a term extension, interest rate reduction, principal forgiveness and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. Accrued interest receivable on loan modifications totaled $0.08 million at September 30, 2023, and is excluded from the amortized cost of loan modifications in the tables below. The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable, type of concession granted and the financial effect of the modifications made to borrowers experiencing financial difficulty: TABLE 5.8 (dollars in millions) Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect Three Months Ended September 30, 2023 Term Extension Commercial real estate $ 0.8 0.01 % The modified loans had an average increase in term of 46 months, extending the maturity date. Commercial and industrial 0.7 0.01 The modified loans had an average increase in term of 25 months, extending the maturity date. Direct installment 0.4 0.01 The modified loans had an average increase in term of 74 months, extending the maturity date. Residential mortgages 1.1 0.02 The modified loans had an average increase in term of 42 months, extending the maturity date. Consumer lines of credit 0.2 0.02 The lines were termed to an average of 243 months. Total 3.2 Term Extension and Rate Reduction Commercial and industrial 0.1 — The term was extended and the rate was reduced, lowering the monthly payment. Direct installment 0.1 — The term was extended and the rate was reduced, lowering the monthly payment. Residential mortgages 0.1 — The term was extended and the rate was reduced, lowering the monthly payment. Total 0.3 Other Commercial real estate 0.2 — Multiple modifications were made with no material financial effect. Direct installment 0.1 — Multiple modifications were made with no material financial effect. Consumer lines of credit 0.4 0.03 Multiple modifications were made with no material financial effect. Total 0.7 Total Outstanding Modified $ 4.2 (dollars in millions) Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect Nine Months Ended September 30, 2023 Term Extension Commercial real estate $ 12.3 0.10 % The modified loans had an average increase in term of 24 months, extending the maturity date. Commercial and industrial 3.0 0.04 The modified loans had an average increase in term of 16 months, extending the maturity date. Direct installment 0.8 0.03 The modified loans had an average increase in term of 99 months, extending the maturity date. Residential mortgages 2.7 0.04 The modified loans had an average increase in term of 105 months, extending the maturity date. Consumer lines of credit 0.4 0.03 The repayment on the loans modified was extended, lowering the monthly repayment. Total 19.2 Term Extension and Rate Reduction Commercial and industrial 0.3 — The term was extended, with a weighted average yield reduction of 462 bps. Direct installment 0.4 0.01 The modified loans had an average increase in term of 330 months, extending the maturity date. Residential mortgages 0.8 0.01 The term was extended, with a weighted average yield reduction of 267 bps. Consumer lines of credit 0.6 0.05 The term was extended, with a weighted average yield reduction of 321 bps. Total 2.1 Other Commercial real estate 0.5 — Multiple modifications were made with no material financial effect. Direct installment 0.1 — Multiple modifications were made with no material financial effect. Residential mortgages 0.1 — Multiple modifications were made with no material financial effect. Consumer lines of credit 0.6 0.05 Multiple modifications were made with no material financial effect. Total 1.3 Total Outstanding Modified $ 22.6 Some loan modifications may not ultimately result in the full collection of principal and interest, as modified, and may result in potential incremental losses which are factored into the ACL. There were no additional funds committed to borrowers whose loans were modified during the first nine months of 2023. Commercial loans over $1.0 million whose terms have been modified may be placed on non-accrual, individually analyzed and measured based on the fair value of the underlying collateral. Our ACL includes specific reserves for commercial loans modified. There was $1.4 million and no specific reserve for commercial loans modified at September 30, 2023 and December 31, 2022, respectively, and pooled reserves for individual loans of $1.5 million and $1.1 million for those same periods, respectively, based on loan segment LGD. Upon default, the amount of the recorded investment of the modified loan balance in excess of the fair value of the collateral, less estimated selling costs, is generally considered a confirmed loss and is charged-off against the ACL. All other classes of loans whose terms have been modified are pooled and measured based on the loan segment LGD. Our ACL included pooled reserves for these classes of loans of $3.8 million at both September 30, 2023 and December 31, 2022. Upon default of an individual loan, our charge-off policy is followed for that class of loan. Following is a summary of loans modified in a manner that grants a concession to a borrower experiencing financial difficulties, by class, for which there was a payment default, excluding loans that have been paid off and/or sold. Default occurs when a loan is 90 days or more past due or in non-accrual and is within 12 months of restructuring. TABLE 5.9 Amortized cost basis of modified financing receivables that subsequently defaulted: (in millions) Term Extension Term Extension and Rate Reduction Other Total Outstanding Modified Three Months Ended September 30, 2023 Commercial real estate $ — $ — $ 0.2 $ 0.2 Commercial and industrial 0.5 0.1 — 0.6 Total commercial loans and leases 0.5 0.1 0.2 0.8 Direct installment 0.1 — — 0.1 Residential mortgages 0.1 — — 0.1 Total consumer loans 0.2 — — 0.2 Total $ 0.7 $ 0.1 $ 0.2 $ 1.0 Nine Months Ended September 30, 2023 Commercial real estate $ 0.4 $ — $ 0.9 $ 1.3 Commercial and industrial 2.0 0.3 — 2.3 Total commercial loans and leases 2.4 0.3 0.9 3.6 Direct installment 0.1 — — 0.1 Residential mortgages 0.1 0.3 — 0.4 Consumer lines of credit 0.1 — — 0.1 Total consumer loans 0.3 0.3 — 0.6 Total $ 2.7 $ 0.6 $ 0.9 $ 4.2 We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months: TABLE 5.10 Payment status - amortization cost basis: (in millions) Current 30-89 Days Past Due 90+ Days Past Due September 30, 2023 Commercial real estate $ 12.9 $ — $ — Commercial and industrial 3.2 — — Total commercial loans and leases 16.1 — — Direct installment 1.2 0.2 — Residential mortgages 2.6 0.8 0.1 Consumer lines of credit 1.6 — — Total consumer loans 5.4 1.0 0.1 Total $ 21.5 $ 1.0 $ 0.1 Prior to the adoption of ASU 2022-02, below are the tables relating to the TDR disclosures as of September 30, 2022. Following is a summary of TDR loans, by class, for loans that were modified during the periods indicated. TABLE 5.11 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (dollars in millions) Number Pre-Modification Post- Number Pre-Modification Post- Commercial real estate 2 $ — $ — 14 $ 5 $ 4 Commercial and industrial 3 — — 10 1 1 Total commercial loans 5 — — 24 6 5 Direct installment 8 1 1 33 1 1 Residential mortgages 14 2 2 34 5 5 Consumer lines of credit 6 — — 12 1 1 Total consumer loans 28 3 3 79 7 7 Total 33 $ 3 $ 3 103 $ 13 $ 12 Following is a summary of TDRs, by class, for which there was a payment default, excluding loans that have been paid off and/or sold. Default occurs when a loan is 90 days or more past due and is within 12 months of restructuring. TABLE 5.12 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (dollars in millions) Number Recorded Number Recorded Commercial real estate 7 $ 3 10 $ 3 Commercial and industrial 1 — 1 — Total commercial loans 8 3 11 3 Direct installment 3 — 5 — Residential mortgages 5 1 8 1 Total consumer loans 8 1 13 1 Total 16 $ 4 24 $ 4 |
ALLOWANCE FOR CREDIT LOSSES ON
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES | ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES The ACL is maintained for credit losses expected in the existing loan and lease portfolio and is presented as a reserve against loans and leases on the Consolidated Balance Sheets. Loan and lease losses are charged off against the ACL, with recoveries of amounts previously charged off credited to the ACL. Provisions for credit losses are charged to operations based on management’s periodic evaluation of the appropriate level of the ACL. Following is a summary of changes in the ACL, by loan and lease class: TABLE 6.1 (in millions) Balance at Charge- Recoveries Net Provision for Credit Losses Balance at Three Months Ended September 30, 2023 Commercial real estate $ 154.2 $ (0.6) $ 0.9 $ 0.3 $ 0.5 $ 155.0 Commercial and industrial 114.3 (37.2) 1.4 (35.8) 17.1 95.6 Commercial leases 15.2 — — — 2.9 18.1 Other 3.8 (0.9) 0.2 (0.7) 1.1 4.2 Total commercial loans and leases 287.5 (38.7) 2.5 (36.2) 21.6 272.9 Direct installment 35.6 (0.1) 0.2 0.1 (1.0) 34.7 Residential mortgages 63.4 (0.1) 0.1 — 4.0 67.4 Indirect installment 16.6 (2.1) 0.5 (1.6) 1.1 16.1 Consumer lines of credit 9.6 (0.2) 0.2 — (0.1) 9.5 Total consumer loans 125.2 (2.5) 1.0 (1.5) 4.0 127.7 Total allowance for credit losses on loans and leases 412.7 (41.2) 3.5 (37.7) 25.6 400.6 Allowance for unfunded loan commitments 21.0 — — — 0.3 21.3 Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments $ 433.7 $ (41.2) $ 3.5 $ (37.7) $ 25.9 $ 421.9 Nine Months Ended September 30, 2023 Commercial real estate $ 162.1 $ (8.9) $ 3.2 $ (5.7) $ (1.4) $ 155.0 Commercial and industrial 102.1 (48.5) 3.0 (45.5) 39.0 95.6 Commercial leases 13.5 — — — 4.6 18.1 Other 4.0 (3.3) 0.7 (2.6) 2.8 4.2 Total commercial loans and leases 281.7 (60.7) 6.9 (53.8) 45.0 272.9 Direct installment 35.9 (0.5) 0.5 — (1.2) 34.7 Residential mortgages 55.5 (0.7) 0.3 (0.4) 12.3 67.4 Indirect installment 17.3 (6.9) 1.6 (5.3) 4.1 16.1 Consumer lines of credit 11.3 (0.8) 0.7 (0.1) (1.7) 9.5 Total consumer loans 120.0 (8.9) 3.1 (5.8) 13.5 127.7 Total allowance for credit losses on loans and leases 401.7 (69.6) 10.0 (59.6) 58.5 400.6 Allowance for unfunded loan commitments 21.4 — — — (0.1) 21.3 Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments $ 423.1 $ (69.6) $ 10.0 $ (59.6) $ 58.4 $ 421.9 (in millions) Balance at Charge- Recoveries Net Provision Balance at Three Months Ended September 30, 2022 Commercial real estate $ 157.9 $ (1.3) $ 0.5 $ (0.8) $ (1.8) $ 155.3 Commercial and industrial 94.3 (0.8) 0.9 0.1 1.8 96.2 Commercial leases 13.7 — — — 0.5 14.2 Other 4.2 (0.9) 0.3 (0.6) 0.6 4.2 Total commercial loans and leases 270.1 (3.0) 1.7 (1.3) 1.1 269.9 Direct installment 34.2 (0.2) 0.1 (0.1) 2.0 36.1 Residential mortgages 47.2 (0.3) 0.2 (0.1) 4.3 51.4 Indirect installment 16.0 (1.9) 0.6 (1.3) 2.4 17.1 Consumer lines of credit 10.5 (0.3) 0.3 — 0.3 10.8 Total consumer loans 107.9 (2.7) 1.2 (1.5) 9.0 115.4 Total allowance for credit losses on loans and leases 378.0 (5.7) 2.9 (2.8) 10.1 385.3 Allowance for unfunded loan commitments 18.2 — — — 1.1 19.3 Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments $ 396.2 $ (5.7) $ 2.9 $ (2.8) $ 11.2 $ 404.6 (in millions) Balance at Charge- Recoveries Net Provision Allowance for PCD Loans and Leases at Acquisition Balance at Nine Months Ended September 30, 2022 Commercial real estate $ 156.5 $ (2.9) $ 2.6 $ (0.3) $ (5.3) $ 4.4 $ 155.3 Commercial and industrial 87.4 (5.1) 4.9 (0.2) 5.6 3.4 96.2 Commercial leases 14.7 (0.1) — (0.1) (0.4) — 14.2 Other 2.6 (2.3) 0.8 (1.5) 3.1 — 4.2 Total commercial loans and leases 261.2 (10.4) 8.3 (2.1) 3.0 7.8 269.9 Direct installment 26.4 (0.4) 0.5 0.1 9.1 0.5 36.1 Residential mortgages 33.1 (0.6) 0.5 (0.1) 17.1 1.3 51.4 Indirect installment 13.5 (4.1) 1.7 (2.4) 6.0 — 17.1 Consumer lines of credit 10.1 (0.7) 0.9 0.2 0.1 0.4 10.8 Total consumer loans 83.1 (5.8) 3.6 (2.2) 32.3 2.2 115.4 Total allowance for credit losses on loans and leases 344.3 (16.2) 11.9 (4.3) 35.3 10.0 385.3 Allowance for unfunded loan commitments 19.1 — — — 0.2 — 19.3 Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments $ 363.4 $ (16.2) $ 11.9 $ (4.3) $ 35.5 $ 10.0 $ 404.6 Following is a summary of changes in the AULC by portfolio segment: TABLE 6.2 Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in millions) Balance at beginning of period $ 21.0 $ 18.2 $ 21.4 $ 19.1 Provision for unfunded loan commitments and letters of credit: Commercial portfolio 0.3 1.1 (0.1) 0.2 Balance at end of period $ 21.3 $ 19.3 $ 21.3 $ 19.3 The model used to calculate the ACL is dependent on the portfolio composition and credit quality, as well as historical experience, current conditions and forecasts of economic conditions and interest rates. Specifically, the following considerations are incorporated into the ACL calculation: • a third-party macroeconomic forecast scenario; • a 24-month R&S forecast period for macroeconomic factors with a reversion to the historical mean on a straight-line basis over a 12-month period; and • the historical through-the-cycle mean was calculated using an expanded period to include a prior recessionary period. At September 30, 2023 and December 31, 2022, we utilized a third-party consensus macroeconomic forecast reflecting the current and projected macroeconomic environment. For our ACL calculation at September 30, 2023, the macroeconomic variables that we utilized included, but were not limited to: (i) the purchase only Housing Price Index, which increases 0.5% over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which declines 3.9% over our R&S forecast period, (iii) S&P Volatility, which decreases 35.0% in 2023 and 14.5% in 2024 and (iv) bankruptcies, which increase steadily over the R&S forecast period but average below historical through the cycle period. Macroeconomic variables that we utilized for our ACL calculation as of December 31, 2022 included, but were not limited to: (i) the purchase only Housing Price Index, which declines 3.7% over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which declines 0.9% over our R&S forecast period, (iii) S&P Volatility, which decreases 41.0% in 2023 and 8.1% in 2024 and (iv) bankruptcies, which increase steadily over the R&S forecast period but average below historical levels. The ACL on loans and leases of $400.6 million at September 30, 2023 decreased $1.1 million, or 0.3%, from December 31, 2022. Our ending ACL coverage ratio at September 30, 2023 was 1.25%, compared to 1.33% at December 31, 2022. Total provision for credit losses for the three months ended September 30, 2023 was $25.9 million compared to $11.2 million for the same period of 2022 with the increase supporting loan growth and $18.8 million for the previously disclosed $31.9 million isolated commercial loan that was downgraded to non-performing status in the second quarter of 2023 based upon initial indications of alleged fraud determined late in the second quarter. Findings uncovered during our ongoing investigation, including subsequent bankruptcy filings by our borrower and its primary supplier in the third quarter of 2023, resulted in the outstanding balance being fully charged-off. The third quarter of 2023 reflected net charge-offs of $37.7 million, or 0.47% annualized of average total loans, compared to $2.8 million, or 0.04% annualized, in the third quarter of 2022. Total provision for credit losses for the nine months ended September 30, 2023 was $58.5 million including $31.9 million in provision for the previously disclosed isolated commercial loan, compared to $35.6 million that included $19.1 million of initial provision for non-PCD loans associated with the Howard acquisition for the same period of 2022. Net charge-offs were $59.6 million, or 0.26% annualized of average total loans, during the nine months ended September 30, 2023, compared to $4.3 million, or 0.02% annualized, for the same period of 2022. |
LOAN SERVICING
LOAN SERVICING | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
LOAN SERVICING | LOAN SERVICING Mortgage Loan Servicing We retain the servicing rights on certain mortgage loans sold. The unpaid principal balance of mortgage loans serviced for others is listed below: TABLE 7.1 (in millions) September 30, December 31, Mortgage loans sold with servicing retained $ 5,638 $ 5,242 The following table summarizes activity relating to mortgage loans sold with servicing retained: TABLE 7.2 Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Mortgage loans sold with servicing retained $ 322 $ 204 $ 781 $ 870 Pre-tax net gains (losses) resulting from above loan sales (1) 1 (2) 1 (9) Mortgage servicing fees (1) 3 3 10 9 (1) Recorded in mortgage banking operations on the Consolidated Statements of Income. Following is a summary of activity relating to MSRs: TABLE 7.3 Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Balance at beginning of period $ 55.7 $ 50.7 $ 52.8 $ 44.4 Additions 3.8 2.4 9.0 10.5 Payoffs and curtailments (1.3) (0.8) (1.6) (3.8) Impairment (charge) / recovery — — — 2.5 Amortization / other 0.2 (0.6) (1.8) (1.9) Balance at end of period $ 58.4 $ 51.7 $ 58.4 $ 51.7 Fair value, beginning of period $ 72.1 $ 64.1 $ 68.6 $ 46.0 Fair value, end of period 75.1 69.6 75.1 69.6 We had no valuation allowance for MSRs as of September 30, 2023 or December 31, 2022. The fair value of MSRs is highly sensitive to changes in assumptions and is determined by estimating the present value of the asset’s future cash flows utilizing market-based prepayment rates, discount rates and other assumptions validated through comparison to trade information, industry surveys and the use of independent third-party valuations. Changes in prepayment speed assumptions have the most significant impact on the fair value of MSRs. Generally, as interest rates decline, mortgage loan prepayments accelerate due to increased refinance activity, which results in a decrease in the fair value of MSRs and as interest rates increase, mortgage loan prepayments decline, which results in an increase in the fair value of MSRs. Measurement of fair value is limited to the conditions existing and the assumptions utilized as of a particular point in time, and those assumptions may not be appropriate if they are applied at a different point in time. Following is a summary of the sensitivity of the fair value of MSRs to changes in key assumptions: TABLE 7.4 (dollars in millions) September 30, December 31, Weighted average life (months) 97 96 Constant prepayment rate (annualized) 7.2 % 7.3 % Discount rate 10.7 % 10.0 % Effect on fair value due to change in interest rates: +2.00% $ 3 $ 9 +1.00% 2 4 +0.50% 1 2 +0.25% 1 1 -0.25% (1) (1) -0.50% (2) (3) -1.00% (6) (6) -2.00% (14) (15) |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES We have operating leases primarily for certain branches, office space, land and office equipment. We have finance leases for certain branches. Our operating leases expire at various dates through the year 2046 and generally include one or more options to renew. Our finance leases expire at various dates through the year 2051 and generally include one or more options to renew. The exercise of lease renewal options is at our sole discretion. As of September 30, 2023, we had operating lease right-of-use assets and operating lease liabilities of $158.6 million and $178.9 million, respectively. We have finance lease right-of-use assets and finance lease liabilities of $31.9 million and $32.9 million, respectively. Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of September 30, 2023, we have certain operating lease agreements, primarily for administrative office space, that have not yet commenced. At commencement, it is expected that these leases will add approximately $45.4 million in right-of-use assets and $60.0 million in other liabilities. These operating leases are currently expected to commence throughout the remainder of 2023 and into 2024 with lease terms of up to 21 years. These operating leases include the lease, with a related party, of the future new FNB headquarters building in Pittsburgh, Pennsylvania. During 2023, several floors of the FNB headquarters building have been made available to FNB for the purpose of constructing our office spaces, and we commenced the lease of those floors. The related party operating lease is accounted for in a manner consistent with all other leases on the basis of the legally enforceable terms and conditions of the lease and the related party represents a VIE for which we are not the primary beneficiary. The components of lease expense were as follows: TABLE 8.1 Three Months Ended Nine Months Ended (dollars in millions) 2023 2022 2023 2022 Operating lease cost $ 9 $ 8 $ 25 $ 24 Variable lease cost 1 1 3 3 Finance lease cost 1 — 3 — Total lease cost $ 11 $ 9 $ 31 $ 27 Other information related to leases is as follows: TABLE 8.2 Nine Months Ended (dollars in millions) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7 $ 7 Operating cash flows from finance leases $ — $ — Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 31 $ — Finance leases $ — $ — Weighted average remaining lease term (years): Operating leases 10.36 9.51 Finance leases 19.75 21.23 Weighted average discount rate: Operating leases 3.2 % 2.4 % Finance leases 3.2 % 2.6 % Maturities of lease liabilities were as follows: TABLE 8.3 (in millions) Operating Leases Finance Leases Total Leases September 30, 2023 2023 $ 9 $ 1 $ 10 2024 29 2 31 2025 24 2 26 2026 21 2 23 2027 18 2 20 Later years 117 36 153 Total lease payments 218 45 263 Less: imputed interest (39) (12) (51) Present value of lease liabilities $ 179 $ 33 $ 212 |
LEASES | LEASES We have operating leases primarily for certain branches, office space, land and office equipment. We have finance leases for certain branches. Our operating leases expire at various dates through the year 2046 and generally include one or more options to renew. Our finance leases expire at various dates through the year 2051 and generally include one or more options to renew. The exercise of lease renewal options is at our sole discretion. As of September 30, 2023, we had operating lease right-of-use assets and operating lease liabilities of $158.6 million and $178.9 million, respectively. We have finance lease right-of-use assets and finance lease liabilities of $31.9 million and $32.9 million, respectively. Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of September 30, 2023, we have certain operating lease agreements, primarily for administrative office space, that have not yet commenced. At commencement, it is expected that these leases will add approximately $45.4 million in right-of-use assets and $60.0 million in other liabilities. These operating leases are currently expected to commence throughout the remainder of 2023 and into 2024 with lease terms of up to 21 years. These operating leases include the lease, with a related party, of the future new FNB headquarters building in Pittsburgh, Pennsylvania. During 2023, several floors of the FNB headquarters building have been made available to FNB for the purpose of constructing our office spaces, and we commenced the lease of those floors. The related party operating lease is accounted for in a manner consistent with all other leases on the basis of the legally enforceable terms and conditions of the lease and the related party represents a VIE for which we are not the primary beneficiary. The components of lease expense were as follows: TABLE 8.1 Three Months Ended Nine Months Ended (dollars in millions) 2023 2022 2023 2022 Operating lease cost $ 9 $ 8 $ 25 $ 24 Variable lease cost 1 1 3 3 Finance lease cost 1 — 3 — Total lease cost $ 11 $ 9 $ 31 $ 27 Other information related to leases is as follows: TABLE 8.2 Nine Months Ended (dollars in millions) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7 $ 7 Operating cash flows from finance leases $ — $ — Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 31 $ — Finance leases $ — $ — Weighted average remaining lease term (years): Operating leases 10.36 9.51 Finance leases 19.75 21.23 Weighted average discount rate: Operating leases 3.2 % 2.4 % Finance leases 3.2 % 2.6 % Maturities of lease liabilities were as follows: TABLE 8.3 (in millions) Operating Leases Finance Leases Total Leases September 30, 2023 2023 $ 9 $ 1 $ 10 2024 29 2 31 2025 24 2 26 2026 21 2 23 2027 18 2 20 Later years 117 36 153 Total lease payments 218 45 263 Less: imputed interest (39) (12) (51) Present value of lease liabilities $ 179 $ 33 $ 212 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES We evaluate our interest in certain entities to determine if these entities meet the definition of a VIE and whether we are the primary beneficiary and required to consolidate the entity based on the variable interest we held both at inception and when there is a change in circumstances that requires a reconsideration. Unconsolidated VIEs The following table provides a summary of the assets and liabilities included in our Consolidated Financial Statements, as well as the maximum exposure to losses, associated with our interests related to VIEs for which we hold an interest, but are not the primary beneficiary. TABLE 9.1 (in millions) Total Assets Total Liabilities Maximum Exposure to Loss September 30, 2023 Trust preferred securities (1) $ 3 $ 73 $ — Affordable housing tax credit partnerships 122 40 122 Other investments 41 6 41 Total $ 166 $ 119 $ 163 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 (1) Represents our investment in unconsolidated subsidiaries. Trust-Preferred Securities We have certain wholly-owned trusts whose assets, liabilities, equity, income and expenses are not included within our Consolidated Financial Statements. These trusts have been formed for the sole purpose of issuing TPS, from which the proceeds are then invested in our junior subordinated debentures, which are reflected in our Consolidated Balance Sheets as junior subordinated debt. The TPS are the obligations of the trusts, and as such, are not consolidated within our Consolidated Financial Statements. For additional information relating to our TPS, see Note 10, “Borrowings” in the Notes to Consolidated Financial Statements. Each issue of the junior subordinated debentures has an interest rate equal to the corresponding TPS distribution rate. We have the right to defer payment of interest on the debentures at any time, or from time-to-time for a period not exceeding five years provided that no extension period may extend beyond the stated maturity of the related debentures. During any such extension period, distributions to the TPS will also be deferred and our ability to pay dividends on our common stock will be restricted. Periodic cash payments and payments upon liquidation or redemption with respect to TPS are guaranteed by us to the extent of funds held by the trusts. The guarantee ranks subordinate and junior in right of payment to all of our indebtedness to the same extent as the junior subordinated debt. The guarantee does not place a limitation on the amount of additional indebtedness that may be incurred by us. Affordable Housing Tax Credit Partnerships We make equity investments as a limited partner in various partnerships that sponsor affordable housing projects utilizing the LIHTC pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to support initiatives associated with the Community Reinvestment Act while earning a satisfactory return. The activities of these LIHTC partnerships include the development and operation of multi-family housing that is leased to qualifying residential tenants. These partnerships are generally located in communities where we have a banking presence and meet the definition of a VIE; however, we are not the primary beneficiary of the entities, as the general partner or managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses beyond our own equity investment. We record our investment in LIHTC partnerships as a component of other assets and use the proportional amortization method to account for our investments in LIHTC partnerships. Amortization related to our LIHTC investments is recorded on a net basis as a component of the provision for income taxes on the Consolidated Statements of Income. The following table presents the balances of our affordable housing tax credit investments and related unfunded commitments: TABLE 9.2 (in millions) September 30, December 31, LIHTC investments included in other assets $ 82 $ 86 Unfunded LIHTC commitments 40 37 The following table summarizes the impact of these LIHTC investments on the provision for income taxes in our Consolidated Statements of Income: TABLE 9.3 Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Provision for income taxes: Amortization of LIHTC investments under proportional method $ 4 $ 4 $ 12 $ 11 Low-income housing tax credits (4) (3) (12) (11) Other tax benefits related to tax credit investments (1) (1) (2) (2) Total impact on provision for income taxes $ (1) $ — $ (2) $ (2) Other Investments Other investments we also consider to be unconsolidated VIEs include investments in Small Business Investment Companies, Historic Tax Credit investments, New Market Tax Credit investments and other equity method investments. |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Following is a summary of short-term borrowings: TABLE 10.1 (in millions) September 30, December 31, Securities sold under repurchase agreements $ 259 $ 317 Federal Home Loan Bank advances 1,665 930 Federal funds purchased 30 — Subordinated notes 112 125 Total short-term borrowings $ 2,066 $ 1,372 Borrowings with original maturities of one year or less are classified as short-term. Securities sold under repurchase agreements are comprised of customer repurchase agreements, which are sweep accounts with next-day maturities utilized by larger commercial customers to earn interest on their funds. Securities are pledged to these customers in an amount at least equal to the outstanding balance. Of the total short-term FHLB advances, 15.9% had overnight maturities as of September 30, 2023. We did not have any short-term FHLB advances with overnight maturities as of December 31, 2022. At September 30, 2023, $600.0 million, or 36.0%, of the short-term FHLB advances were swapped to fixed rates with various maturities through 2024. This compares to $930.0 million, or 100.0%, as of December 31, 2022. Following is a summary of long-term borrowings: TABLE 10.2 (in millions) September 30, December 31, Federal Home Loan Bank advances $ 1,200 $ — Senior notes 348 648 Subordinated notes 80 70 Junior subordinated debt 73 72 Other subordinated debt 267 303 Total long-term borrowings $ 1,968 $ 1,093 During the third quarter of 2022, we completed a debt offering in which we issued $350 million aggregate principal amount of 5.150% fixed-rate senior notes due in 2025. The net proceeds of the debt offering after deducting underwriting discounts and commissions and offering costs were $347.4 million. These proceeds were used for general corporate purposes, which included the repayment of $300 million in 2.200% Senior Notes that matured in February 2023, and may also include investments at the holding company level, capital to support the growth of FNBPA and refinancing of outstanding indebtedness. During 2022, we assumed $25 million of other subordinated debt and $5 million of junior subordinated debt from the Howard acquisition and $31 million of other subordinated debt from the Union acquisition. During the second quarter of 2023, we called $6 million in other subordinated debt acquired from the Union acquisition and we repurchased and retired $15.0 million in other subordinated debt assumed in a previous acquisition. Additionally, during the third quarter of 2023, $13.6 million in other subordinated debt assumed in a previous acquisition matured and we repurchased and retired $1.0 million in other subordinated debt acquired from the Howard acquisition. Our banking affiliate has available credit with the FHLB of $10.6 billion, of which $2.9 billion was utilized and included in short-term and long-term borrowings and $700.0 million was utilized for a letter of credit for pledging of public funds as of September 30, 2023. These advances are secured by loans collateralized by residential mortgages, home equity lines of credit, commercial real estate and FHLB stock. The short-term borrowings are scheduled to mature in various amounts periodically during 2023 while the long-term borrowings are scheduled to mature periodically through 2027. Effective interest rates paid on the long-term FHLB advances held during 2023 ranged from 4.23% to 4.88% for the three months ended September 30, 2023. There were no long-term FHLB borrowings during the first nine months of 2022, or as of December 31, 2022. Our banking affiliate has additional unused other wholesale credit availability of $8.6 billion as of September 30, 2023. The following table provides information relating to our senior notes and other subordinated debt as of September 30, 2023. The subordinated notes are eligible for treatment as tier 2 capital for regulatory capital purposes. TABLE 10.3 (dollars in millions) Aggregate Principal Amount Issued Net Proceeds (5) Carrying Value Stated Maturity Date Interest Senior Notes: 5.150% Senior Notes due August 25, 2025 $ 350 $ 347 $ 348 8/25/2025 5.150 % Total senior notes 350 347 348 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 % 6.000% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 (2) (4) 25 26 24 12/6/2028 6.000 % 5.000% Fixed-To-Floating Rate Subordinated Note due May 29, 2030 (3) (4) 25 24 24 5/29/2030 5.000 % Total other subordinated debt 270 266 267 Total $ 620 $ 613 $ 615 (1) Fixed-to-floating rate until February 14, 2024, at which time the floating rate will be the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points) plus 240 basis points. (2) Fixed-to-floating rate until December 6, 2023, at which time the floating rate will be the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points) plus 302 basis points. (3) Fixed-to-floating rate until May 29, 2025, at which time the floating rate will be three-month SOFR plus 464 basis points. (4) Assumed from an acquisition and adjusted to fair value at the time of acquisition. (5) After deducting underwriting discounts and commissions and offering costs. For the debt assumed from acquisitions, this is the fair value of the debt at the time of the acquisition. The junior subordinated debt is comprised of the debt securities issued by FNB, or companies we acquired, in relation to our four unconsolidated subsidiary trusts (collectively, the Trusts), which are unconsolidated VIEs, and are included on the Consolidated Balance Sheets in long-term borrowings. Since third-party investors are the primary beneficiaries, the Trusts are not consolidated in our Financial Statements. We record the distributions on the junior subordinated debt issued to the Trusts as interest expense. The following table provides information relating to the Trusts as of September 30, 2023: TABLE 10.4 (dollars in millions) Trust Common Junior Stated Interest Rate Rate Reset Factor F.N.B. Statutory Trust II $ 22 $ 1 $ 22 6/15/2036 7.32 % SOFR + 165 bps Yadkin Valley Statutory Trust I 25 1 23 12/15/2037 6.99 % SOFR + 132 bps FNB Financial Services Capital Trust I 25 1 23 9/30/2035 7.12 % SOFR + 146 bps Patapsco Statutory Trust I 5 — 5 12/15/2035 7.15 % SOFR + 148 bps Total $ 77 $ 3 $ 73 The SOFR rate used for the rate reset factors in the above table is the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points). |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIESWe are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate risk, primarily by managing the amount, source, and duration of our assets and liabilities, and through the use of derivative instruments. Derivative instruments are used to reduce the effects that changes in interest rates may have on net income and cash flows. We also use derivative instruments to facilitate transactions on behalf of our customers. All derivatives are carried on the Consolidated Balance Sheets at fair value and do not take into account the effects of master netting arrangements we have with other financial institutions. Credit risk is included in the determination of the estimated fair value of derivatives. Derivative assets are reported in the Consolidated Balance Sheets in other assets and derivative liabilities are reported in other liabilities. Changes in fair value are recognized in earnings except for certain changes related to derivative instruments designated as part of a cash flow hedging relationship, which are recognized in other comprehensive income. The following table presents notional amounts and gross fair values of our derivative assets and derivative liabilities which are not offset in the Consolidated Balance Sheets: TABLE 11.1 September 30, 2023 December 31, 2022 Notional Fair Value Notional Fair Value (in millions) Amount Asset Liability Amount Asset Liability Gross Derivatives Subject to master netting arrangements: Interest rate contracts – designated $ 2,000 $ — $ 4 $ 2,180 $ — $ 1 Interest rate swaps – not designated 5,577 140 2 5,333 89 6 Total subject to master netting arrangements 7,577 140 6 7,513 89 7 Not subject to master netting arrangements: Interest rate swaps – not designated 5,577 2 460 5,333 6 390 Interest rate lock commitments – not designated 234 — 3 163 — 12 Forward delivery commitments – not designated 198 3 — 203 1 2 Credit risk contracts – not designated 649 — — 506 — — Total not subject to master netting arrangements 6,658 5 463 6,205 7 404 Total $ 14,235 $ 145 $ 469 $ 13,718 $ 96 $ 411 Certain derivative exchanges have enacted a rule change which in effect results in the legal characterization of variation margin payments for certain derivative contracts as settlement of the derivatives mark-to-market exposure and not collateral. Accordingly, we have changed our reporting of certain derivatives to record variation margin on trades cleared through these exchanges as settled. The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument. We adopted Reference Rate Reform (RRR) on October 1, 2020, and the guidance will be followed until the Update terminates on December 31, 2024. As of October 16, 2020, we changed our valuation methodology to reflect changes made by central clearinghouses that changed the discounting methodology and interest calculation of cash migration from overnight index swap (OIS) to SOFR for U.S. dollar cleared interest rate swaps to better reflect prices obtainable in the markets in which we transact. Certain of these valuation methodology changes were applied to eligible hedging relationships. Accordingly, we have updated our hedge documentation to reflect the election of certain expedients and exceptions related to our cash flow hedging programs. The change in valuation methodology was applied prospectively as a change in accounting estimate and did not have a material impact on our consolidated financial position or results of operations. Derivatives Designated as Hedging Instruments under GAAP Interest Rate Contracts. We entered into interest rate derivative agreements to modify the interest rate characteristics of certain commercial loans and certain of our FHLB advances from variable rate to fixed rate in order to reduce the impact of changes in future cash flows due to market interest rate changes. These agreements are designated as cash flow hedges, in the form of interest rate swaps and collars, hedging the exposure to variability in expected future cash flows. The derivative’s gain or loss, including any ineffectiveness, is initially reported as a component of other comprehensive income and subsequently reclassified into earnings in the same line item associated with the forecasted transaction when the forecasted transaction affects earnings. The following table shows amounts reclassified from AOCI: TABLE 11.2 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income Nine Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Derivatives in cash flow hedging relationships: Interest rate contracts $ (21) $ (39) Interest income (expense) $ (16) $ (8) Other income — — The following table represents gains (losses) recognized in the Consolidated Statements of Income on cash flow hedging relationships: TABLE 11.3 Nine months ended September 30, 2023 2022 (in millions) Interest Income - Loans and Leases Interest Expense - Short-Term Borrowings Interest Income - Loans and Leases Interest Expense - Short-Term Borrowings Total amounts of income and expense line items presented in the Consolidated Statements of Income (the effects of cash flow hedges are included in these line items) $ 1,278 $ 55 $ 760 $ 17 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 (33) 17 (1) (7) As of September 30, 2023, the maximum length of time over which forecasted interest cash flows are hedged is 2.6 years. In the twelve months that follow September 30, 2023, we expect to reclassify from the amount currently reported in AOCI net derivative losses of $36.4 million ($28.2 million net of tax), in association with interest on the hedged loans and FHLB advances. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to September 30, 2023. There were no components of derivative gains or losses excluded from the assessment of hedge effectiveness related to these cash flow hedges. Also, during the nine months ended September 30, 2023 and 2022, there were no gains or losses from cash flow hedge derivatives reclassified to earnings because it became probable that the original forecasted transactions would not occur. Derivatives Not Designated as Hedging Instruments under GAAP A description of interest rate swaps, interest rate lock commitments, forward delivery commitments and credit risk contracts can be found in Note 16, "Derivative Instruments and Hedging Activities" in the Consolidated Financial Statements included in our 2022 Annual Report on Form 10-K filed with the SEC on February 24, 2023. Interest rate swap agreements with loan customers and with the offsetting counterparties are reported at fair value in other assets and other liabilities on the Consolidated Balance Sheets with any resulting gain or loss recorded in current period earnings as other income or other expense. Risk participation agreements sold with notional amounts totaling $529.6 million as of September 30, 2023 have remaining terms ranging from one day to eighteen years. Under these agreements, our maximum exposure assuming a customer defaults on their obligation to perform under certain derivative swap contracts with third parties would be $0.1 million at September 30, 2023 and $0.1 million at December 31, 2022. The fair values of risk participation agreements purchased and sold were $0.1 million and $0.1 million, respectively, at September 30, 2023 and $0.1 million and $0.1 million, respectively at December 31, 2022. The following table presents the effect of certain derivative financial instruments on the Consolidated Statements of Income: TABLE 11.4 Nine Months Ended (in millions) Consolidated Statements of Income Location 2023 2022 Interest rate swaps Non-interest income - other $ (1) $ — Interest rate lock commitments Mortgage banking operations — — Forward delivery contracts Mortgage banking operations 4 2 Credit risk contracts Non-interest income - other — — Counterparty Credit Risk We are party to master netting arrangements with most of our swap derivative dealer counterparties. Collateral, usually marketable securities and/or cash, is exchanged between FNB and our counterparties, and is generally subject to thresholds and transfer minimums. For swap transactions that require central clearing, we post cash and securities to our clearing agency. Collateral positions are settled or valued daily, and adjustments to amounts received and pledged by us are made as appropriate to maintain proper collateralization for these transactions. Certain master netting agreements contain provisions that, if violated, could cause the counterparties to request immediate settlement or demand full collateralization under the derivative instrument. If we had breached our agreements with our derivative counterparties we would be required to settle our obligations under the agreements at the termination value and would be required to pay nothing as of September 30, 2023 and an additional $0.1 million as of December 31, 2022, in excess of amounts previously posted as collateral with the respective counterparty. The following table presents a reconciliation of the net amounts of derivative assets and derivative liabilities presented in the Consolidated Balance Sheets to the net amounts that would result in the event of offset: TABLE 11.5 Amount Not Offset in the (in millions) Net Amount Financial Cash Net September 30, 2023 Derivative Assets Interest rate contracts: Not designated $ 140 $ — $ 140 $ — Total $ 140 $ — $ 140 $ — Derivative Liabilities Interest rate contracts: Designated $ 4 $ — $ 4 $ — Not designated 2 — 2 — Total $ 6 $ — $ 6 $ — 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 $ — |
COMMITMENTS, CREDIT RISK AND CO
COMMITMENTS, CREDIT RISK AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CREDIT RISK AND CONTINGENCIES | COMMITMENTS, CREDIT RISK AND CONTINGENCIES We have commitments to extend credit and standby letters of credit that involve certain elements of credit risk in excess of the amount stated in the Consolidated Balance Sheets. Our exposure to credit loss in the event of non-performance by the customer is represented by the contractual amount of those instruments. The credit risk associated with commitments to extend credit and standby letters of credit is essentially the same as that involved in extending loans and leases to customers and is subject to normal credit policies. Since many of these commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. Following is a summary of off-balance sheet credit risk information: TABLE 12.1 (in millions) September 30, December 31, Commitments to extend credit $ 13,457 $ 13,250 Standby letters of credit 232 207 At September 30, 2023, funding of 74.9% of the commitments to extend credit was dependent on the financial condition of the customer. We have the ability to withdraw such commitments at our discretion. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Based on management’s credit evaluation of the customer, collateral may be deemed necessary. Collateral requirements vary and may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. Standby letters of credit are conditional commitments issued by us that may require payment at a future date. The credit risk involved in issuing letters of credit is actively monitored through review of the historical performance of our portfolios. Our AULC for commitments that are not unconditionally cancellable, which is included in other liabilities on the Consolidated Balance Sheets, was $21.3 million at September 30, 2023 and $21.4 million at December 31, 2022. Additional information relating to the AULC is provided in Note 6, "Allowance for Credit Losses on Loans and Leases" in the Notes to Consolidated Financial Statements. In addition to the above commitments, subordinated notes issued by FNB Financial Services, LP, a wholly-owned finance subsidiary, are fully and unconditionally guaranteed by FNB. These subordinated notes are included in the summaries of short-term borrowings and long-term borrowings in Note 10, “Borrowings” in the Notes to Consolidated Financial Statements. Other Legal Proceedings In the ordinary course of business, we may assert claims in legal proceedings against another party or parties, and we are routinely named as defendants in, or made parties to, pending and potential legal actions. Also, as regulated entities, we are subject to governmental and regulatory examinations, information-gathering requests, and may be subject to investigations and proceedings (both formal and informal). Such threatened claims, litigation, investigations, regulatory and administrative proceedings typically entail matters that are considered incidental to the normal conduct of business. Claims for significant monetary damages may be asserted in many of these types of legal actions, while claims for disgorgement, reimbursement, restitution, penalties and/or other remedial actions or sanctions may be sought in regulatory matters. In these instances, if we determine that we have meritorious defenses, we will engage in an aggressive defense. However, if management determines, in consultation with counsel, that settlement of a matter is in the best interest of FNB and our shareholders, we may do so. It is inherently difficult to predict the eventual outcomes of such matters given their complexity and the particular facts and circumstances at issue in each of these matters. However, on the basis of current knowledge and understanding, and advice of counsel, we do not believe that judgments, sanctions, settlement resolutions, regulatory actions, investigations, settlements or orders, if any, that have arisen or may arise from these matters (either individually or in the aggregate, after giving effect to applicable reserves and insurance coverage) will have a material adverse effect on our financial position or liquidity, although they could potentially have a material effect on net income in a given period. In view of the inherent unpredictability of outcomes in litigation and governmental and regulatory matters, particularly where (i) the damages sought are indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel legal theories or a large number of parties, as a matter of course, there is considerable uncertainty surrounding the timing or ultimate resolution of litigation and governmental and regulatory matters, including a possible eventual loss, financial or other commitments, fine, restitution, penalty, business or adverse reputational impact, if any, associated with each such matter. In accordance with applicable accounting guidance, we establish accruals for litigation and governmental and regulatory matters when those matters proceed to a stage where they present loss contingencies that are both probable and reasonably estimable. In such cases, there may be a possible exposure to loss in excess of any amounts accrued. We will continue to monitor such matters, including ongoing reviews, examinations, and investigations by banking regulatory agencies and other government authorities, for developments that could affect the amount of the accrual, and will adjust the accrual amount as appropriate. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. We believe that our accruals for legal proceedings are appropriate and, in the aggregate, are not material to our consolidated financial position, although future accruals could have a material effect on net income in a given period. |
STOCK INCENTIVE PLANS
STOCK INCENTIVE PLANS | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK INCENTIVE PLANS | STOCK INCENTIVE PLANS Restricted Stock We issue restricted stock awards to key employees under our Incentive Compensation Plan (Plan). We issue time-based awards and performance-based awards under this Plan, both of which are based on a three-year vesting period. The grant date fair value of the time-based awards is equal to the price of our common stock on the grant date. The fair value of the performance-based awards is based on a Monte-Carlo simulation valuation of our common stock as of the grant date. The assumptions used for this valuation include stock price volatility, risk-free interest rate and dividend yield. We granted 1,426,146 and 1,266,821 restricted stock units during the nine months ended September 30, 2023 and 2022, respectively, including 290,764 and 297,508 performance-based restricted stock units during those same periods, respectively. We have shareholder approval under the Plan to issue up to 7,397,956 shares of common stock. As of September 30, 2023, we had 5,529,405 remaining shares available for awards under the Plan. The unvested restricted stock unit awards are eligible to receive cash dividends or dividend equivalents which are ultimately used to purchase additional shares of stock and are subject to forfeiture if the requisite service period is not completed or the specified performance criteria are not met. These awards are subject to certain accelerated vesting provisions upon retirement, death, disability or in the event of a change of control as defined in the award agreements. The following table summarizes the activity relating to restricted stock units during the periods indicated: TABLE 13.1 Nine Months Ended September 30, 2023 2022 Units Weighted Units Weighted Unvested units outstanding at beginning of period 4,821,182 $ 10.30 4,680,786 $ 9.71 Granted 1,426,146 12.71 1,266,821 13.07 Acquired — — 60,300 9.41 Net adjustment 172,874 — 244,258 9.34 Vested (2,310,042) 7.03 (1,683,372) 10.58 Forfeited/expired/canceled (605,383) 7.93 (219,058) 10.95 Dividend reinvestment — — 137,976 11.91 Unvested units outstanding at end of period 3,504,777 12.88 4,487,711 10.31 The following table provides certain information related to restricted stock units: TABLE 13.2 (in millions) Nine Months Ended 2023 2022 Stock-based compensation expense $ 15 $ 15 Tax benefit related to stock-based compensation expense 3 3 Fair value of units vested 18 21 As of September 30, 2023, there was $13.0 million of unrecognized compensation cost related to unvested restricted stock units. The components of the restricted stock units as of September 30, 2023 are as follows: TABLE 13.3 (dollars in millions) Service- Performance- Total Unvested restricted stock units 2,541,229 963,548 3,504,777 Unrecognized compensation expense $ 13 $ — $ 13 Intrinsic value $ 27 $ 10 $ 37 Weighted average remaining life (in years) 1.90 1.61 1.82 Stock Options All outstanding stock options were assumed from acquisitions and are fully vested. Upon consummation of our acquisitions, all outstanding stock options issued by the acquired companies were converted into equivalent FNB stock options. We issue shares of treasury stock or authorized but unissued shares to satisfy stock options exercised. As of September 30, 2023, we had 104,223 stock options outstanding and exercisable at a weighted average exercise price per share of $9.96, compared to 167,948 stock options outstanding and exercisable at a weighted average exercise price per share of $9.03 as of September 30, 2022. The intrinsic value of outstanding and exercisable stock options at September 30, 2023 was $0.1 million. The aggregate intrinsic value represents the amount by which the fair value of underlying stock exceeds the option exercise price. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Tax Expense Federal and state income tax expense and the statutory tax rate and the actual effective tax rate consist of the following: TABLE 14.1 Three Months Ended Nine Months Ended (dollars in millions) 2023 2022 2023 2022 Current income taxes: Federal taxes $ 12 $ 32 $ 79 $ 61 State taxes 3 2 8 7 Total current income taxes 15 34 87 68 Deferred income taxes: Federal taxes 3 — 2 8 State taxes 1 1 2 1 Total deferred income taxes 4 1 4 9 Total income taxes $ 19 $ 35 $ 91 $ 77 Statutory federal tax rate 21.0 % 21.0 % 21.0 % 21.0 % Effective tax rate 11.5 20.7 17.4 20.5 Income tax expense was higher for the nine months ended September 30, 2023 due to higher pre-tax earnings as we had merger-related expenses from the Howard and Union acquisitions in 2022. This was partially offset by the recording of tax benefits from renewable energy investment tax credits in 2023 as part of a solar project financing transaction. The decrease in the effective tax rate for the nine months ended September 30, 2023 compared to 2022 was primarily due to tax benefits from the investment tax credits recorded in 2023. Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and tax purposes. Deferred tax assets and liabilities are measured based on the enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Net deferred tax assets were $153.7 million and $147.7 million at September 30, 2023 and December 31, 2022, respectively. |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) | OTHER COMPREHENSIVE INCOME (LOSS) The following table presents changes in AOCI, net of tax, by component: TABLE 15.1 (in millions) Unrealized Unrealized Unrecognized Total Nine Months Ended September 30, 2023 Balance at beginning of period $ (269) $ (44) $ (44) $ (357) Other comprehensive (loss) income before reclassifications (22) (17) 1 (38) Amounts reclassified from AOCI — 13 — 13 Net current period other comprehensive (loss) income (22) (4) 1 (25) Balance at end of period $ (291) $ (48) $ (43) $ (382) The amounts reclassified from AOCI related to debt securities AFS are included in net securities gains (losses) on the Consolidated Statements of Income, while the amounts reclassified from AOCI related to derivative instruments in cash flow hedge programs are generally included in interest income on loans and leases on the Consolidated Statements of Income. The tax (benefit) expense amounts reclassified from AOCI in connection with the debt securities AFS and derivative instruments reclassifications are included in income taxes on the Consolidated Statements of Income. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding net of unvested shares of restricted stock. Diluted earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding, adjusted for the dilutive effect of potential common shares issuable for stock options and restricted shares, as calculated using the treasury stock method. Adjustments to the weighted average number of shares of common stock outstanding are made only when such adjustments dilute earnings per common share. The following table sets forth the computation of basic and diluted earnings per common share: TABLE 16.1 Three Months Ended Nine Months Ended ( dollars in millions, except per share data) 2023 2022 2023 2022 Net income $ 145 $ 138 $ 434 $ 300 Less: Preferred stock dividends 2 2 6 6 Net income available to common stockholders $ 143 $ 136 $ 428 $ 294 Basic weighted average common shares outstanding 360,847,457 350,910,562 360,603,432 348,868,423 Net effect of dilutive stock options and restricted stock 930,968 3,743,917 2,501,504 3,917,702 Diluted weighted average common shares outstanding 361,778,425 354,654,479 363,104,936 352,786,125 Earnings per common share: Basic $ 0.40 $ 0.39 $ 1.19 $ 0.84 Diluted $ 0.40 $ 0.38 $ 1.18 $ 0.83 |
CASH FLOW INFORMATION
CASH FLOW INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
CASH FLOW INFORMATION | CASH FLOW INFORMATION Following is a summary of supplemental cash flow information: TABLE 17.1 Nine Months Ended (in millions) 2023 2022 Interest paid on deposits and other borrowings $ 420 $ 88 Income taxes paid 94 56 Transfers of loans to other real estate owned 2 1 Loans transferred to portfolio from held for sale 33 — We did not have any restricted cash as of September 30, 2023 and 2022. Supplemental non-cash information relating to the Howard and Union acquisitions is included in Note 3, Mergers and Acquisitions. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS We operate in three reportable segments: Community Banking, Wealth Management and Insurance. • The Community Banking segment provides commercial and consumer banking services. Commercial banking solutions include corporate banking, small business banking, investment real estate financing, business credit, capital markets and lease financing. Consumer banking products and services include deposit products, mortgage lending, consumer lending and a complete suite of mobile and online banking services. • The Wealth Management segment provides a broad range of personal and corporate fiduciary services including the administration of decedent and trust estates. In addition, it offers various alternative products, including securities brokerage (under a third-party arrangement) and investment advisory services, mutual funds and annuities. • The Insurance segment includes a full-service insurance brokerage service offering all lines of commercial and personal insurance through major carriers. The Insurance segment also includes a reinsurer. The following tables provide financial information for these segments of FNB. The information provided under the caption “Parent and Other” represents operations not considered to be reportable segments and/or general operating expenses of FNB, and includes the parent company, other non-bank subsidiaries and eliminations and adjustments to reconcile to the Consolidated Financial Statements. TABLE 18.1 (in millions) Community Wealth Insurance Parent and Consolidated At or for the Three Months Ended September 30, 2023 Interest income $ 512 $ — $ — $ 1 $ 513 Interest expense 180 — — 7 187 Net interest income 332 — — (6) 326 Provision for credit losses 25 — — — 25 Non-interest income 60 18 4 (1) 81 Non-interest expense (1) 194 12 5 2 213 Amortization of intangibles 5 — — — 5 Income tax expense (benefit) 19 2 — (2) 19 Net income (loss) 149 4 (1) (7) 145 Total assets 45,305 40 30 121 45,496 Total intangibles 2,516 9 26 — 2,551 At or for the Three Months Ended September 30, 2022 Interest income $ 342 $ — $ — $ 1 $ 343 Interest expense 41 — — 5 46 Net interest income 301 — — (4) 297 Provision for credit losses 12 — — — 12 Non-interest income 62 16 7 (2) 83 Non-interest expense (1) 174 11 5 2 192 Amortization of intangibles 3 — — — 3 Income tax expense (benefit) 36 1 — (2) 35 Net income (loss) 138 4 2 (6) 138 Total assets 42,458 37 33 62 42,590 Total intangibles 2,451 9 27 — 2,487 (1) Excludes amortization of intangibles, which is presented separately. (in millions) Community Wealth Insurance Parent and Consolidated At or for the Nine Months Ended September 30, 2023 Interest income $ 1,437 $ — $ — $ 4 $ 1,441 Interest expense 425 — — 24 449 Net interest income 1,012 — — (20) 992 Provision for credit losses 58 — — — 58 Non-interest income 172 54 18 (3) 241 Non-interest expense (1) 576 38 14 7 635 Amortization of intangibles 15 — — — 15 Income tax expense (benefit) 96 4 1 (10) 91 Net income (loss) 439 12 3 (20) 434 Total assets 45,305 40 30 121 45,496 Total intangibles 2,516 9 26 — 2,551 At or for the Nine Months Ended September 30, 2022 Interest income $ 874 $ — $ — $ 3 $ 877 Interest expense 82 — — 10 92 Net interest income 792 — — (7) 785 Provision for credit losses 35 — — 1 36 Non-interest income 179 48 20 (4) 243 Non-interest expense (1) 554 32 14 5 605 Amortization of intangibles 9 — 1 — 10 Income tax expense (benefit) 78 3 1 (5) 77 Net income (loss) 295 13 4 (12) 300 Total assets 42,458 37 33 62 42,590 Total intangibles 2,451 9 27 — 2,487 (1) Excludes amortization of intangibles, which is presented separately. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Refer to Note 26 "Fair Value Measurements" to the Consolidated Financial Statements included in our 2022 Annual Report on Form 10-K filed with the SEC on February 24, 2023 for a description of additional valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis. The following table presents the balances of assets and liabilities measured at fair value on a recurring basis: TABLE 19.1 (in millions) Level 1 Level 2 Level 3 Total September 30, 2023 Assets Measured at Fair Value Debt securities available for sale U.S. Treasury $ 306 $ — $ — $ 306 U.S. government agencies — 86 — 86 U.S. government-sponsored entities — 303 — 303 Residential mortgage-backed securities: Agency mortgage-backed securities — 1,032 — 1,032 Agency collateralized mortgage obligations — 840 — 840 Commercial mortgage-backed securities — 521 — 521 States of the U.S. and political subdivisions (municipals) — 26 — 26 Other debt securities — 31 — 31 Total debt securities available for sale 306 2,839 — 3,145 Loans held for sale — 92 — 92 Derivative financial instruments Trading — 142 — 142 Not for trading — 3 — 3 Total derivative financial instruments — 145 — 145 Total assets measured at fair value on a recurring basis $ 306 $ 3,076 $ — $ 3,382 Liabilities Measured at Fair Value Derivative financial instruments Trading $ — $ 462 $ — $ 462 Not for trading — 4 3 7 Total derivative financial instruments — 466 3 469 Total liabilities measured at fair value on a recurring basis $ — $ 466 $ 3 $ 469 (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 The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value: TABLE 19.2 (in millions) Other Interest Total Nine Months Ended September 30, 2023 Balance at beginning of period $ — $ — $ — Purchases, issuances, sales and settlements: Issuances — 1 1 Settlements — (1) (1) Balance at end of period $ — $ — $ — 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 $ — $ — $ — We review fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation attributes may result in reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in/out of Level 3 at fair value at the beginning of the period in which the changes occur. There were no transfers of assets or liabilities between the hierarchy levels during the first nine months of 2023 or 2022. From time to time, we measure certain assets at fair value on a non-recurring basis. These adjustments to fair value usually result from the application of the lower of cost or fair value accounting or write-downs of individual assets. Valuation methodologies used to measure these fair value adjustments were described in Note 26, "Fair Value Measurements" to the Consolidated Financial Statements included in 2022 Annual Report on Form 10-K . For assets measured at fair value on a non-recurring basis still held at the Balance Sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios: TABLE 19.3 (in millions) Level 1 Level 2 Level 3 Total September 30, 2023 Collateral dependent loans $ — $ — $ 31 $ 31 Other assets - SBA servicing asset — — 2 2 Other real estate owned — — 2 2 December 31, 2022 Collateral dependent loans $ — $ — $ 34 $ 34 Other assets - SBA servicing asset — — 2 2 Other real estate owned — — 3 3 The fair value amounts for collateral dependent loans and OREO in the table above were estimated at a date during the nine months or twelve months ended September 30, 2023 and December 31, 2022, respectively. Consequently, the fair value information presented is not necessarily as of the period’s end. Collateral dependent loans measured or re-measured at fair value on a non-recurring basis during the nine months ended September 30, 2023 had a carrying amount of $31.4 million, which includes an allocated ACL of $6.2 million. The ACL includes a credit to the provision applicable to the current period fair value measurements of $46.1 million, which was included in provision for credit losses for the nine months ended September 30, 2023. SBA servicing assets measured at fair value on a non-recurring basis had a carrying value of $1.5 million. During 2023, the valuation allowance decreased $0.2 million to $1.4 million as of September 30, 2023, down from $1.6 million at December 31, 2022, which is reflected in the year-to-date provision expense. OREO measured at fair value on a non-recurring basis during 2023 had a carrying amount of $2.0 million, which included a valuation allowance of $0.3 million, as of September 30, 2023. The valuation allowance includes a loss of $0.7 million, which was included in earnings for the nine months ended September 30, 2023. Fair Value of Financial Instruments Refer to Note 26, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2022 Annual Report on Form 10-K filed with the SEC on February 24, 2023 for a description of methods and assumptions that were used to estimate the fair value of each financial instrument. The fair values of our financial instruments are as follows: TABLE 19.4 Fair Value Measurements (in millions) Carrying Fair Level 1 Level 2 Level 3 September 30, 2023 Financial Assets Cash and cash equivalents $ 1,637 $ 1,637 $ 1,637 $ — $ — Debt securities available for sale 3,145 3,145 306 2,839 — Debt securities held to maturity 3,922 3,403 — 3,403 — Net loans and leases, including loans held for sale 31,860 29,733 — 92 29,641 Loan servicing rights 60 77 — — 77 Derivative assets 145 145 — 145 — Accrued interest receivable 158 158 158 — — Financial Liabilities Deposits 34,615 34,534 28,822 5,712 — Short-term borrowings 2,066 2,064 2,064 — — Long-term borrowings 1,968 1,923 — 1,187 736 Derivative liabilities 469 469 — 466 3 Accrued interest payable 60 60 60 — — 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 — — |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our accompanying Consolidated Financial Statements and these Notes to Consolidated Financial Statements (unaudited) include subsidiaries in which we have a controlling financial interest. We own and operate FNBPA, First National Trust Company, First National Investment Services Company, LLC, F.N.B. Investment Advisors, Inc., First National Insurance Agency, LLC, Bank Capital Services, LLC, F.N.B. Capital Corporation, LLC and Waubank Securities, LLC, and include results for each of these entities in the accompanying Consolidated Financial Statements. Companies in which we hold a controlling financial interest, or are a VIE in which we have the power to direct the activities of an entity that most significantly impact the entity’s economic performance and have an obligation to absorb losses or the right to receive benefits which could potentially be significant to the VIE, are consolidated. For a voting interest entity, a controlling financial interest is generally where we hold more than 50% of the outstanding voting shares. VIEs in which we do not hold the power to direct the activities of the entity that most significantly impact the entity’s economic performance or an obligation to absorb losses or the right to receive benefits which could potentially be significant to the VIE are not consolidated. Investments in companies that are not consolidated are accounted for using the equity method when we have the ability to exert significant influence or the cost method when we do not have the ability to exert significant influence. Investments in private investment partnerships that are accounted for under the equity method or the cost method are included in other assets and our proportional interest in the equity investments’ earnings are included in other non-interest income. Investment interests accounted for under the cost and equity methods are periodically evaluated for impairment. The accompanying interim unaudited Consolidated Financial Statements include all adjustments that are necessary, in the opinion of management, to fairly reflect our financial position and results of operations in accordance with GAAP. All significant intercompany balances and transactions have been eliminated. Events occurring subsequent to September 30, 2023 have been evaluated for potential recognition or disclosure in the Consolidated Financial Statements through the date of the filing of the Consolidated Financial Statements with the SEC. Certain information and Note disclosures normally included in Consolidated Financial Statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. The interim operating results are not necessarily indicative of operating results we expect for the full year. These interim unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in our 2022 Annual Report on Form 10-K filed with the SEC on February 24, 2023. |
Use of Estimates | Use of Estimates Our accounting and reporting policies conform with GAAP. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements (unaudited). Actual results could materially differ from those estimates. Material estimates that are particularly susceptible to significant changes include the ACL, fair value of financial instruments, goodwill and other intangible assets, income taxes and deferred tax assets and litigation reserves, which are listed in the critical accounting estimates. For a detailed description of our significant accounting policies and critical accounting estimates, see Note 1, "Summary of Significant Accounting Policies" and the "Application of Critical Accounting Policies" section in the MD&A, both in our 2022 Annual Report on Form 10-K . |
New Accounting Standards | The following table summarizes accounting pronouncements issued by the FASB that we recently adopted or will be adopting in the future. TABLE 2.1 Standard Description Financial Statements Impact Tax Equity Investments ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method This Update expands the use of the proportional amortization method of accounting, previously only allowable for LIHTC investments, to equity investments in other tax credit structures that meet certain criteria. The Update also removed the specialized guidance for LIHTC investments that are not accounted for using the proportional amortization method or equity method and require that those investments are accounted for using Topic 321 regarding equity investments. This Update is to be applied using either a modified retrospective or a retrospective method and will be effective as of January 1, 2024. Early adoption of this Update is permitted. We plan to adopt this Update on January 1, 2024. The adoption of this Update is not expected to have a material impact on our consolidated financial statements. 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 entities to apply loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. The Update requires enhanced disclosures for certain loan modifications by creditors when a borrower is experiencing financial difficulty if the modification includes principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension, or a combination of those modification types. 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. We adopted this Update on January 1, 2023, on a prospective basis for all amendments. Adoption of this Update did not have a material impact on our consolidated financial statements. |
NEW ACCOUNTING STANDARDS (Table
NEW ACCOUNTING STANDARDS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table summarizes accounting pronouncements issued by the FASB that we recently adopted or will be adopting in the future. TABLE 2.1 Standard Description Financial Statements Impact Tax Equity Investments ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method This Update expands the use of the proportional amortization method of accounting, previously only allowable for LIHTC investments, to equity investments in other tax credit structures that meet certain criteria. The Update also removed the specialized guidance for LIHTC investments that are not accounted for using the proportional amortization method or equity method and require that those investments are accounted for using Topic 321 regarding equity investments. This Update is to be applied using either a modified retrospective or a retrospective method and will be effective as of January 1, 2024. Early adoption of this Update is permitted. We plan to adopt this Update on January 1, 2024. The adoption of this Update is not expected to have a material impact on our consolidated financial statements. 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 entities to apply loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. The Update requires enhanced disclosures for certain loan modifications by creditors when a borrower is experiencing financial difficulty if the modification includes principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension, or a combination of those modification types. 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. We adopted this Update on January 1, 2023, on a prospective basis for all amendments. Adoption of this Update did not have a material impact on our consolidated financial statements. |
MERGERS AND ACQUISITIONS (Table
MERGERS AND ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Amounts Recorded on Consolidated Balance Sheets in Conjunction with Acquisition | The following table summarizes the amounts recorded on the consolidated balance sheets as of the acquisition dates in conjunction with the Howard and Union acquisitions discussed above. TABLE 3.1 (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 59 Total identifiable assets acquired 2,351 1,077 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 88 Goodwill recognized $ 177 $ 38 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Securities Available for Sale | The amortized cost and fair value of AFS debt securities are presented in the table below. There was no ACL associated with the AFS portfolio at September 30, 2023 and December 31, 2022. Accrued interest receivable on AFS debt securities totaled $10.4 million at September 30, 2023 and $8.9 million at December 31, 2022, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets. Accordingly, we have excluded accrued interest receivable from both the fair value and the amortized cost basis of AFS debt securities. TABLE 4.1 (in millions) Amortized Gross Gross Fair Debt Securities AFS: September 30, 2023 U.S. Treasury $ 327 $ — $ (21) $ 306 U.S. government agencies 85 1 — 86 U.S. government-sponsored entities 323 — (20) 303 Residential mortgage-backed securities: Agency mortgage-backed securities 1,171 — (139) 1,032 Agency collateralized mortgage obligations 986 — (146) 840 Commercial mortgage-backed securities 565 — (44) 521 States of the U.S. and political subdivisions (municipals) 30 — (4) 26 Other debt securities 33 — (2) 31 Total debt securities AFS $ 3,520 $ 1 $ (376) $ 3,145 (in millions) Amortized Gross Gross Fair 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 |
Schedule of Amortized Cost and Fair Value of Securities Held to Maturity | The amortized cost and fair value of HTM debt securities are presented in the following table. The ACL for the HTM portfolio was $0.30 million and $0.23 million at September 30, 2023 and December 31, 2022, respectively. Accrued interest receivable on HTM debt securities totaled $13.4 million and $14.0 million at September 30, 2023 and December 31, 2022, respectively, and is excluded from the estimate of credit losses and assessed separately in other assets in the Consolidated Balance Sheets. Accordingly, we have excluded accrued interest receivable from both the fair value and the amortized cost basis of HTM debt securities. TABLE 4.2 (in millions) Amortized Gross Gross Fair Debt Securities HTM: September 30, 2023 U.S. government agencies $ 1 $ — $ — $ 1 U.S. government-sponsored entities 93 — (1) 92 Residential mortgage-backed securities: Agency mortgage-backed securities 1,052 — (144) 908 Agency collateralized mortgage obligations 852 — (132) 720 Commercial mortgage-backed securities 891 — (68) 823 States of the U.S. and political subdivisions (municipals) 1,017 — (172) 845 Other debt securities 16 — (2) 14 Total debt securities HTM $ 3,922 $ — $ (519) $ 3,403 (in millions) Amortized Gross Gross Fair 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 |
Schedule of Amortized Cost and Fair Value of Securities, by Contractual Maturities | As of September 30, 2023, the amortized cost and fair value of debt securities, by contractual maturities, were as follows: TABLE 4.3 Available for Sale Held to Maturity (in millions) Amortized Fair Amortized Fair Due in one year or less $ 54 $ 54 $ 2 $ 2 Due after one year but within five years 655 612 140 136 Due after five years but within ten years 53 51 224 196 Due after ten years 36 35 761 618 798 752 1,127 952 Residential mortgage-backed securities: Agency mortgage-backed securities 1,171 1,032 1,052 908 Agency collateralized mortgage obligations 986 840 852 720 Commercial mortgage-backed securities 565 521 891 823 Total debt securities $ 3,520 $ 3,145 $ 3,922 $ 3,403 |
Schedule of Securities Pledged as Collateral | Following is information relating to securities pledged: TABLE 4.4 (dollars in millions) September 30, December 31, Securities pledged (carrying value): To secure public deposits, trust deposits and for other purposes as required by law $ 5,995 $ 6,403 As collateral for short-term borrowings 281 348 Securities pledged as a percent of total securities 88.8 % 91.7 % |
Summaries of Fair Values and Unrealized Losses of Impaired Securities, Segregated by Length of Impairment | Following are summaries of the fair values of AFS debt securities in an unrealized loss position for which an ACL has not been recorded, segregated by security type and length of time in a continuous loss position: TABLE 4.5 Less than 12 Months 12 Months or More Total (dollars in millions) # Fair Unrealized # Fair Unrealized # Fair Unrealized Debt Securities AFS September 30, 2023 U.S. Treasury — $ — $ — 6 $ 257 $ (21) 6 $ 257 $ (21) U.S. government agencies 5 24 — 8 15 — 13 39 — U.S. government-sponsored entities 2 50 — 10 253 (20) 12 303 (20) Residential mortgage-backed securities: Agency mortgage-backed securities 7 2 — 114 1,029 (139) 121 1,031 (139) Agency collateralized mortgage obligations — — — 71 840 (146) 71 840 (146) Commercial mortgage-backed securities 5 148 (3) 21 373 (41) 26 521 (44) States of the U.S. and political subdivisions (municipals) — — — 13 26 (4) 13 26 (4) Other debt securities 2 8 (1) 7 17 (1) 9 25 (2) Total 21 $ 232 $ (4) 250 $ 2,810 $ (372) 271 $ 3,042 $ (376) Less than 12 Months 12 Months or More Total (dollars in millions) # Fair Unrealized # Fair Unrealized # Fair Unrealized 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) |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Summary of Loans and Leases, Net of Unearned Income | Following is a summary of total loans and leases, net of unearned income: TABLE 5.1 (in millions) September 30, 2023 December 31, 2022 Commercial real estate $ 11,962 $ 11,526 Commercial and industrial 7,462 7,131 Commercial leases 562 519 Other 160 114 Total commercial loans and leases 20,146 19,290 Direct installment 2,754 2,784 Residential mortgages 6,434 5,297 Indirect installment 1,519 1,553 Consumer lines of credit 1,298 1,331 Total consumer loans 12,005 10,965 Total loans and leases, net of unearned income $ 32,151 $ 30,255 |
Schedule of Certain Information Relating to Commercial Real Estate Loans | The following table shows occupancy information relating to commercial real estate loans: TABLE 5.2 (dollars in millions) September 30, December 31, Commercial real estate: Percent owner-occupied 29.0 % 30.2 % Percent non-owner-occupied 71.0 69.8 |
Summary of Loan, Credit Quality Indicators | We use an internal risk rating assigned to a commercial loan or lease at origination, summarized below. TABLE 5.3 Rating Category Definition Pass in general, the condition of the borrower and the performance of the loan is satisfactory or better Special Mention in general, the condition of the borrower has deteriorated, requiring an increased level of monitoring Substandard in general, the condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate if deficiencies are not corrected Doubtful in general, the condition of the borrower has significantly deteriorated and the collection in full of both principal and interest is highly questionable or improbable |
Schedule of Financing Receivables, Originated Year | The following table summarizes the designated loan rating category by loan class including term loans on an amortized cost basis by origination year and year-to-date gross charge-offs by originating year: TABLE 5.4 September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total (in millions) COMMERCIAL Commercial Real Estate: Risk Rating: Pass $ 964 $ 2,043 $ 2,356 $ 1,513 $ 1,153 $ 2,825 $ 234 $ 11,088 Special Mention 1 74 37 131 99 216 7 565 Substandard 3 23 17 14 65 170 17 309 Total commercial real estate 968 2,140 2,410 1,658 1,317 3,211 258 11,962 Commercial real estate current period gross charge-offs — 0.1 0.2 — — 8.6 — 8.9 Commercial and Industrial: Risk Rating: Pass 1,240 1,464 930 667 460 584 1,650 6,995 Special Mention 12 9 69 3 18 38 33 182 Substandard 28 14 48 8 19 57 111 285 Total commercial and industrial 1,280 1,487 1,047 678 497 679 1,794 7,462 Commercial and industrial current period gross charge-offs 0.1 0.3 0.4 0.6 1.6 45.5 — 48.5 Commercial Leases: Risk Rating: Pass 177 142 89 54 29 45 — 536 Special Mention — — — — 1 — — 1 Substandard 7 3 5 7 2 1 — 25 Total commercial leases 184 145 94 61 32 46 — 562 Commercial leases current period gross charge-offs — — — — — — — — Other Commercial: Risk Rating: Pass 78 — — — — 9 73 160 Total other commercial 78 — — — — 9 73 160 Other commercial current period gross charge-offs — — — — — 3.3 — 3.3 Total commercial loans and leases 2,510 3,772 3,551 2,397 1,846 3,945 2,125 20,146 September 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total (in millions) CONSUMER Direct Installment: Current 261 735 809 408 143 386 — 2,742 Past due — 1 1 1 — 9 — 12 Total direct installment 261 736 810 409 143 395 — 2,754 Direct installment current period gross charge-offs — 0.1 0.1 0.1 — 0.2 — 0.5 Residential Mortgages: Current 1,145 1,684 1,542 815 351 853 1 6,391 Past due 1 5 2 2 2 31 — 43 Total residential mortgages 1,146 1,689 1,544 817 353 884 1 6,434 Residential mortgages current period gross charge-offs — — — 0.1 — 0.6 — 0.7 Indirect Installment: Current 371 638 266 114 51 59 — 1,499 Past due 1 8 7 2 1 1 — 20 Total indirect installment 372 646 273 116 52 60 — 1,519 Indirect installment current period gross charge-offs 0.2 2.8 2.9 0.5 0.2 0.3 — 6.9 Consumer Lines of Credit: Current 31 64 15 2 2 119 1,050 1,283 Past due — — 1 — 1 12 1 15 Total consumer lines of credit 31 64 16 2 3 131 1,051 1,298 Consumer lines of credit current period gross charge-offs — — 0.1 — — 0.7 — 0.8 Total consumer loans 1,810 3,135 2,643 1,344 551 1,470 1,052 12,005 Total loans and leases $ 4,320 $ 6,907 $ 6,194 $ 3,741 $ 2,397 $ 5,415 $ 3,177 $ 32,151 Total charge-offs $ 0.3 $ 3.3 $ 3.7 $ 1.3 $ 1.8 $ 59.2 $ — $ 69.6 The following table summarizes the designated loan rating category by loan class including term loans on an amortized cost basis by origination year: TABLE 5.5 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 |
Schedule of Age Analysis of Past Due Loans, by Class | The following tables provide an analysis of the aging of loans by class. TABLE 5.6 (in millions) 30-89 Days > 90 Days Past Due and Still Accruing Non- Total Current Total Non-accrual with No ACL September 30, 2023 Commercial real estate $ 15 $ — $ 44 $ 59 $ 11,903 $ 11,962 $ 20 Commercial and industrial 7 — 44 51 7,411 7,462 9 Commercial leases — — 1 1 561 562 — Other 1 — — 1 159 160 — Total commercial loans and leases 23 — 89 112 20,034 20,146 29 Direct installment 5 1 6 12 2,742 2,754 — Residential mortgages 29 4 10 43 6,391 6,434 — Indirect installment 16 2 2 20 1,499 1,519 — Consumer lines of credit 7 2 6 15 1,283 1,298 — Total consumer loans 57 9 24 90 11,915 12,005 — Total loans and leases $ 80 $ 9 $ 113 $ 202 $ 31,949 $ 32,151 $ 29 (in millions) 30-89 Days > 90 Days Past Due and Still Accruing Non- Total Current Total 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 |
Summary of Non-Performing Assets | Following is a summary of non-performing assets: TABLE 5.7 (dollars in millions) September 30, December 31, Non-accrual loans $ 113 $ 113 Total non-performing loans and leases 113 113 Other real estate owned 3 6 Total non-performing assets $ 116 $ 119 Asset quality ratios: Non-performing loans and leases / total loans and leases 0.35 % 0.37 % Non-performing assets plus 90 days or more past due / total loans and leases plus OREO 0.39 0.44 |
Summary of Financing Receivable, Modified | The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable, type of concession granted and the financial effect of the modifications made to borrowers experiencing financial difficulty: TABLE 5.8 (dollars in millions) Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect Three Months Ended September 30, 2023 Term Extension Commercial real estate $ 0.8 0.01 % The modified loans had an average increase in term of 46 months, extending the maturity date. Commercial and industrial 0.7 0.01 The modified loans had an average increase in term of 25 months, extending the maturity date. Direct installment 0.4 0.01 The modified loans had an average increase in term of 74 months, extending the maturity date. Residential mortgages 1.1 0.02 The modified loans had an average increase in term of 42 months, extending the maturity date. Consumer lines of credit 0.2 0.02 The lines were termed to an average of 243 months. Total 3.2 Term Extension and Rate Reduction Commercial and industrial 0.1 — The term was extended and the rate was reduced, lowering the monthly payment. Direct installment 0.1 — The term was extended and the rate was reduced, lowering the monthly payment. Residential mortgages 0.1 — The term was extended and the rate was reduced, lowering the monthly payment. Total 0.3 Other Commercial real estate 0.2 — Multiple modifications were made with no material financial effect. Direct installment 0.1 — Multiple modifications were made with no material financial effect. Consumer lines of credit 0.4 0.03 Multiple modifications were made with no material financial effect. Total 0.7 Total Outstanding Modified $ 4.2 (dollars in millions) Amortized Cost Basis % of Total Class of Financing Receivable Financial Effect Nine Months Ended September 30, 2023 Term Extension Commercial real estate $ 12.3 0.10 % The modified loans had an average increase in term of 24 months, extending the maturity date. Commercial and industrial 3.0 0.04 The modified loans had an average increase in term of 16 months, extending the maturity date. Direct installment 0.8 0.03 The modified loans had an average increase in term of 99 months, extending the maturity date. Residential mortgages 2.7 0.04 The modified loans had an average increase in term of 105 months, extending the maturity date. Consumer lines of credit 0.4 0.03 The repayment on the loans modified was extended, lowering the monthly repayment. Total 19.2 Term Extension and Rate Reduction Commercial and industrial 0.3 — The term was extended, with a weighted average yield reduction of 462 bps. Direct installment 0.4 0.01 The modified loans had an average increase in term of 330 months, extending the maturity date. Residential mortgages 0.8 0.01 The term was extended, with a weighted average yield reduction of 267 bps. Consumer lines of credit 0.6 0.05 The term was extended, with a weighted average yield reduction of 321 bps. Total 2.1 Other Commercial real estate 0.5 — Multiple modifications were made with no material financial effect. Direct installment 0.1 — Multiple modifications were made with no material financial effect. Residential mortgages 0.1 — Multiple modifications were made with no material financial effect. Consumer lines of credit 0.6 0.05 Multiple modifications were made with no material financial effect. Total 1.3 Total Outstanding Modified $ 22.6 We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months: TABLE 5.10 Payment status - amortization cost basis: (in millions) Current 30-89 Days Past Due 90+ Days Past Due September 30, 2023 Commercial real estate $ 12.9 $ — $ — Commercial and industrial 3.2 — — Total commercial loans and leases 16.1 — — Direct installment 1.2 0.2 — Residential mortgages 2.6 0.8 0.1 Consumer lines of credit 1.6 — — Total consumer loans 5.4 1.0 0.1 Total $ 21.5 $ 1.0 $ 0.1 Following is a summary of TDR loans, by class, for loans that were modified during the periods indicated. TABLE 5.11 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (dollars in millions) Number Pre-Modification Post- Number Pre-Modification Post- Commercial real estate 2 $ — $ — 14 $ 5 $ 4 Commercial and industrial 3 — — 10 1 1 Total commercial loans 5 — — 24 6 5 Direct installment 8 1 1 33 1 1 Residential mortgages 14 2 2 34 5 5 Consumer lines of credit 6 — — 12 1 1 Total consumer loans 28 3 3 79 7 7 Total 33 $ 3 $ 3 103 $ 13 $ 12 |
Summary of Financing Receivable, Modified, Subsequent Default | Following is a summary of loans modified in a manner that grants a concession to a borrower experiencing financial difficulties, by class, for which there was a payment default, excluding loans that have been paid off and/or sold. Default occurs when a loan is 90 days or more past due or in non-accrual and is within 12 months of restructuring. TABLE 5.9 Amortized cost basis of modified financing receivables that subsequently defaulted: (in millions) Term Extension Term Extension and Rate Reduction Other Total Outstanding Modified Three Months Ended September 30, 2023 Commercial real estate $ — $ — $ 0.2 $ 0.2 Commercial and industrial 0.5 0.1 — 0.6 Total commercial loans and leases 0.5 0.1 0.2 0.8 Direct installment 0.1 — — 0.1 Residential mortgages 0.1 — — 0.1 Total consumer loans 0.2 — — 0.2 Total $ 0.7 $ 0.1 $ 0.2 $ 1.0 Nine Months Ended September 30, 2023 Commercial real estate $ 0.4 $ — $ 0.9 $ 1.3 Commercial and industrial 2.0 0.3 — 2.3 Total commercial loans and leases 2.4 0.3 0.9 3.6 Direct installment 0.1 — — 0.1 Residential mortgages 0.1 0.3 — 0.4 Consumer lines of credit 0.1 — — 0.1 Total consumer loans 0.3 0.3 — 0.6 Total $ 2.7 $ 0.6 $ 0.9 $ 4.2 |
Summary of Troubled Debt Restructurings by Class of Loans and Leases, Payment Default | Following is a summary of TDRs, by class, for which there was a payment default, excluding loans that have been paid off and/or sold. Default occurs when a loan is 90 days or more past due and is within 12 months of restructuring. TABLE 5.12 Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 (dollars in millions) Number Recorded Number Recorded Commercial real estate 7 $ 3 10 $ 3 Commercial and industrial 1 — 1 — Total commercial loans 8 3 11 3 Direct installment 3 — 5 — Residential mortgages 5 1 8 1 Total consumer loans 8 1 13 1 Total 16 $ 4 24 $ 4 |
ALLOWANCE FOR CREDIT LOSSES O_2
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Summary of Changes in Allowance for Credit Losses by Loan and Lease Class | Following is a summary of changes in the ACL, by loan and lease class: TABLE 6.1 (in millions) Balance at Charge- Recoveries Net Provision for Credit Losses Balance at Three Months Ended September 30, 2023 Commercial real estate $ 154.2 $ (0.6) $ 0.9 $ 0.3 $ 0.5 $ 155.0 Commercial and industrial 114.3 (37.2) 1.4 (35.8) 17.1 95.6 Commercial leases 15.2 — — — 2.9 18.1 Other 3.8 (0.9) 0.2 (0.7) 1.1 4.2 Total commercial loans and leases 287.5 (38.7) 2.5 (36.2) 21.6 272.9 Direct installment 35.6 (0.1) 0.2 0.1 (1.0) 34.7 Residential mortgages 63.4 (0.1) 0.1 — 4.0 67.4 Indirect installment 16.6 (2.1) 0.5 (1.6) 1.1 16.1 Consumer lines of credit 9.6 (0.2) 0.2 — (0.1) 9.5 Total consumer loans 125.2 (2.5) 1.0 (1.5) 4.0 127.7 Total allowance for credit losses on loans and leases 412.7 (41.2) 3.5 (37.7) 25.6 400.6 Allowance for unfunded loan commitments 21.0 — — — 0.3 21.3 Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments $ 433.7 $ (41.2) $ 3.5 $ (37.7) $ 25.9 $ 421.9 Nine Months Ended September 30, 2023 Commercial real estate $ 162.1 $ (8.9) $ 3.2 $ (5.7) $ (1.4) $ 155.0 Commercial and industrial 102.1 (48.5) 3.0 (45.5) 39.0 95.6 Commercial leases 13.5 — — — 4.6 18.1 Other 4.0 (3.3) 0.7 (2.6) 2.8 4.2 Total commercial loans and leases 281.7 (60.7) 6.9 (53.8) 45.0 272.9 Direct installment 35.9 (0.5) 0.5 — (1.2) 34.7 Residential mortgages 55.5 (0.7) 0.3 (0.4) 12.3 67.4 Indirect installment 17.3 (6.9) 1.6 (5.3) 4.1 16.1 Consumer lines of credit 11.3 (0.8) 0.7 (0.1) (1.7) 9.5 Total consumer loans 120.0 (8.9) 3.1 (5.8) 13.5 127.7 Total allowance for credit losses on loans and leases 401.7 (69.6) 10.0 (59.6) 58.5 400.6 Allowance for unfunded loan commitments 21.4 — — — (0.1) 21.3 Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments $ 423.1 $ (69.6) $ 10.0 $ (59.6) $ 58.4 $ 421.9 (in millions) Balance at Charge- Recoveries Net Provision Balance at Three Months Ended September 30, 2022 Commercial real estate $ 157.9 $ (1.3) $ 0.5 $ (0.8) $ (1.8) $ 155.3 Commercial and industrial 94.3 (0.8) 0.9 0.1 1.8 96.2 Commercial leases 13.7 — — — 0.5 14.2 Other 4.2 (0.9) 0.3 (0.6) 0.6 4.2 Total commercial loans and leases 270.1 (3.0) 1.7 (1.3) 1.1 269.9 Direct installment 34.2 (0.2) 0.1 (0.1) 2.0 36.1 Residential mortgages 47.2 (0.3) 0.2 (0.1) 4.3 51.4 Indirect installment 16.0 (1.9) 0.6 (1.3) 2.4 17.1 Consumer lines of credit 10.5 (0.3) 0.3 — 0.3 10.8 Total consumer loans 107.9 (2.7) 1.2 (1.5) 9.0 115.4 Total allowance for credit losses on loans and leases 378.0 (5.7) 2.9 (2.8) 10.1 385.3 Allowance for unfunded loan commitments 18.2 — — — 1.1 19.3 Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments $ 396.2 $ (5.7) $ 2.9 $ (2.8) $ 11.2 $ 404.6 (in millions) Balance at Charge- Recoveries Net Provision Allowance for PCD Loans and Leases at Acquisition Balance at Nine Months Ended September 30, 2022 Commercial real estate $ 156.5 $ (2.9) $ 2.6 $ (0.3) $ (5.3) $ 4.4 $ 155.3 Commercial and industrial 87.4 (5.1) 4.9 (0.2) 5.6 3.4 96.2 Commercial leases 14.7 (0.1) — (0.1) (0.4) — 14.2 Other 2.6 (2.3) 0.8 (1.5) 3.1 — 4.2 Total commercial loans and leases 261.2 (10.4) 8.3 (2.1) 3.0 7.8 269.9 Direct installment 26.4 (0.4) 0.5 0.1 9.1 0.5 36.1 Residential mortgages 33.1 (0.6) 0.5 (0.1) 17.1 1.3 51.4 Indirect installment 13.5 (4.1) 1.7 (2.4) 6.0 — 17.1 Consumer lines of credit 10.1 (0.7) 0.9 0.2 0.1 0.4 10.8 Total consumer loans 83.1 (5.8) 3.6 (2.2) 32.3 2.2 115.4 Total allowance for credit losses on loans and leases 344.3 (16.2) 11.9 (4.3) 35.3 10.0 385.3 Allowance for unfunded loan commitments 19.1 — — — 0.2 — 19.3 Total allowance for credit losses on loans and leases and allowance for unfunded loan commitments $ 363.4 $ (16.2) $ 11.9 $ (4.3) $ 35.5 $ 10.0 $ 404.6 Following is a summary of changes in the AULC by portfolio segment: TABLE 6.2 Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in millions) Balance at beginning of period $ 21.0 $ 18.2 $ 21.4 $ 19.1 Provision for unfunded loan commitments and letters of credit: Commercial portfolio 0.3 1.1 (0.1) 0.2 Balance at end of period $ 21.3 $ 19.3 $ 21.3 $ 19.3 |
LOAN SERVICING (Tables)
LOAN SERVICING (Tables) - Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2023 | |
Servicing Assets at Fair Value [Line Items] | |
Schedule of Servicing Asset at Amortized Cost | The unpaid principal balance of mortgage loans serviced for others is listed below: TABLE 7.1 (in millions) September 30, December 31, Mortgage loans sold with servicing retained $ 5,638 $ 5,242 The following table summarizes activity relating to mortgage loans sold with servicing retained: TABLE 7.2 Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Mortgage loans sold with servicing retained $ 322 $ 204 $ 781 $ 870 Pre-tax net gains (losses) resulting from above loan sales (1) 1 (2) 1 (9) Mortgage servicing fees (1) 3 3 10 9 (1) Recorded in mortgage banking operations on the Consolidated Statements of Income. Following is a summary of activity relating to MSRs: TABLE 7.3 Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Balance at beginning of period $ 55.7 $ 50.7 $ 52.8 $ 44.4 Additions 3.8 2.4 9.0 10.5 Payoffs and curtailments (1.3) (0.8) (1.6) (3.8) Impairment (charge) / recovery — — — 2.5 Amortization / other 0.2 (0.6) (1.8) (1.9) Balance at end of period $ 58.4 $ 51.7 $ 58.4 $ 51.7 Fair value, beginning of period $ 72.1 $ 64.1 $ 68.6 $ 46.0 Fair value, end of period 75.1 69.6 75.1 69.6 |
Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement | Following is a summary of the sensitivity of the fair value of MSRs to changes in key assumptions: TABLE 7.4 (dollars in millions) September 30, December 31, Weighted average life (months) 97 96 Constant prepayment rate (annualized) 7.2 % 7.3 % Discount rate 10.7 % 10.0 % Effect on fair value due to change in interest rates: +2.00% $ 3 $ 9 +1.00% 2 4 +0.50% 1 2 +0.25% 1 1 -0.25% (1) (1) -0.50% (2) (3) -1.00% (6) (6) -2.00% (14) (15) |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease, Cost | The components of lease expense were as follows: TABLE 8.1 Three Months Ended Nine Months Ended (dollars in millions) 2023 2022 2023 2022 Operating lease cost $ 9 $ 8 $ 25 $ 24 Variable lease cost 1 1 3 3 Finance lease cost 1 — 3 — Total lease cost $ 11 $ 9 $ 31 $ 27 |
Schedule of Leases, Other Information | Other information related to leases is as follows: TABLE 8.2 Nine Months Ended (dollars in millions) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7 $ 7 Operating cash flows from finance leases $ — $ — Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 31 $ — Finance leases $ — $ — Weighted average remaining lease term (years): Operating leases 10.36 9.51 Finance leases 19.75 21.23 Weighted average discount rate: Operating leases 3.2 % 2.4 % Finance leases 3.2 % 2.6 % |
Schedule of Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities were as follows: TABLE 8.3 (in millions) Operating Leases Finance Leases Total Leases September 30, 2023 2023 $ 9 $ 1 $ 10 2024 29 2 31 2025 24 2 26 2026 21 2 23 2027 18 2 20 Later years 117 36 153 Total lease payments 218 45 263 Less: imputed interest (39) (12) (51) Present value of lease liabilities $ 179 $ 33 $ 212 |
Schedule of Finance Lease, Liability, Fiscal Year Maturity | Maturities of lease liabilities were as follows: TABLE 8.3 (in millions) Operating Leases Finance Leases Total Leases September 30, 2023 2023 $ 9 $ 1 $ 10 2024 29 2 31 2025 24 2 26 2026 21 2 23 2027 18 2 20 Later years 117 36 153 Total lease payments 218 45 263 Less: imputed interest (39) (12) (51) Present value of lease liabilities $ 179 $ 33 $ 212 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities, Assets and Liabilities | The following table provides a summary of the assets and liabilities included in our Consolidated Financial Statements, as well as the maximum exposure to losses, associated with our interests related to VIEs for which we hold an interest, but are not the primary beneficiary. TABLE 9.1 (in millions) Total Assets Total Liabilities Maximum Exposure to Loss September 30, 2023 Trust preferred securities (1) $ 3 $ 73 $ — Affordable housing tax credit partnerships 122 40 122 Other investments 41 6 41 Total $ 166 $ 119 $ 163 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 (1) Represents our investment in unconsolidated subsidiaries. |
Schedule of Low Income Housing Tax Credits, Balances Of Affordable Housing Tax Credit Investments And Related Unfunded Commitments | The following table presents the balances of our affordable housing tax credit investments and related unfunded commitments: TABLE 9.2 (in millions) September 30, December 31, LIHTC investments included in other assets $ 82 $ 86 Unfunded LIHTC commitments 40 37 |
Schedule of Low Income Housing Tax Credits, Income Statement Effect | The following table summarizes the impact of these LIHTC investments on the provision for income taxes in our Consolidated Statements of Income: TABLE 9.3 Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Provision for income taxes: Amortization of LIHTC investments under proportional method $ 4 $ 4 $ 12 $ 11 Low-income housing tax credits (4) (3) (12) (11) Other tax benefits related to tax credit investments (1) (1) (2) (2) Total impact on provision for income taxes $ (1) $ — $ (2) $ (2) |
BORROWINGS (Tables)
BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Short-Term Borrowings | Following is a summary of short-term borrowings: TABLE 10.1 (in millions) September 30, December 31, Securities sold under repurchase agreements $ 259 $ 317 Federal Home Loan Bank advances 1,665 930 Federal funds purchased 30 — Subordinated notes 112 125 Total short-term borrowings $ 2,066 $ 1,372 |
Summary of Long-Term Borrowings | Following is a summary of long-term borrowings: TABLE 10.2 (in millions) September 30, December 31, Federal Home Loan Bank advances $ 1,200 $ — Senior notes 348 648 Subordinated notes 80 70 Junior subordinated debt 73 72 Other subordinated debt 267 303 Total long-term borrowings $ 1,968 $ 1,093 |
Schedule of Other Subordinated Debt | The following table provides information relating to our senior notes and other subordinated debt as of September 30, 2023. The subordinated notes are eligible for treatment as tier 2 capital for regulatory capital purposes. TABLE 10.3 (dollars in millions) Aggregate Principal Amount Issued Net Proceeds (5) Carrying Value Stated Maturity Date Interest Senior Notes: 5.150% Senior Notes due August 25, 2025 $ 350 $ 347 $ 348 8/25/2025 5.150 % Total senior notes 350 347 348 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 % 6.000% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 (2) (4) 25 26 24 12/6/2028 6.000 % 5.000% Fixed-To-Floating Rate Subordinated Note due May 29, 2030 (3) (4) 25 24 24 5/29/2030 5.000 % Total other subordinated debt 270 266 267 Total $ 620 $ 613 $ 615 (1) Fixed-to-floating rate until February 14, 2024, at which time the floating rate will be the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points) plus 240 basis points. (2) Fixed-to-floating rate until December 6, 2023, at which time the floating rate will be the Benchmark Replacement (three-month CME term SOFR plus a tenor spread adjustment of 26 basis points) plus 302 basis points. (3) Fixed-to-floating rate until May 29, 2025, at which time the floating rate will be three-month SOFR plus 464 basis points. (4) Assumed from an acquisition and adjusted to fair value at the time of acquisition. (5) After deducting underwriting discounts and commissions and offering costs. For the debt assumed from acquisitions, this is the fair value of the debt at the time of the acquisition. |
Schedule of Junior Subordinated Debt Trusts | The following table provides information relating to the Trusts as of September 30, 2023: TABLE 10.4 (dollars in millions) Trust Common Junior Stated Interest Rate Rate Reset Factor F.N.B. Statutory Trust II $ 22 $ 1 $ 22 6/15/2036 7.32 % SOFR + 165 bps Yadkin Valley Statutory Trust I 25 1 23 12/15/2037 6.99 % SOFR + 132 bps FNB Financial Services Capital Trust I 25 1 23 9/30/2035 7.12 % SOFR + 146 bps Patapsco Statutory Trust I 5 — 5 12/15/2035 7.15 % SOFR + 148 bps Total $ 77 $ 3 $ 73 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts and Gross Fair Values of Derivative Assets and Derivative Liabilities | The following table presents notional amounts and gross fair values of our derivative assets and derivative liabilities which are not offset in the Consolidated Balance Sheets: TABLE 11.1 September 30, 2023 December 31, 2022 Notional Fair Value Notional Fair Value (in millions) Amount Asset Liability Amount Asset Liability Gross Derivatives Subject to master netting arrangements: Interest rate contracts – designated $ 2,000 $ — $ 4 $ 2,180 $ — $ 1 Interest rate swaps – not designated 5,577 140 2 5,333 89 6 Total subject to master netting arrangements 7,577 140 6 7,513 89 7 Not subject to master netting arrangements: Interest rate swaps – not designated 5,577 2 460 5,333 6 390 Interest rate lock commitments – not designated 234 — 3 163 — 12 Forward delivery commitments – not designated 198 3 — 203 1 2 Credit risk contracts – not designated 649 — — 506 — — Total not subject to master netting arrangements 6,658 5 463 6,205 7 404 Total $ 14,235 $ 145 $ 469 $ 13,718 $ 96 $ 411 |
Summary of Amounts Reclassified from Accumulated Other Comprehensive Income (AOCI) | The following table shows amounts reclassified from AOCI: TABLE 11.2 Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income Nine Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Derivatives in cash flow hedging relationships: Interest rate contracts $ (21) $ (39) Interest income (expense) $ (16) $ (8) Other income — — |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table represents gains (losses) recognized in the Consolidated Statements of Income on cash flow hedging relationships: TABLE 11.3 Nine months ended September 30, 2023 2022 (in millions) Interest Income - Loans and Leases Interest Expense - Short-Term Borrowings Interest Income - Loans and Leases Interest Expense - Short-Term Borrowings Total amounts of income and expense line items presented in the Consolidated Statements of Income (the effects of cash flow hedges are included in these line items) $ 1,278 $ 55 $ 760 $ 17 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 (33) 17 (1) (7) |
Schedule of Derivative Financial Instruments on the Consolidated Statements of Income | The following table presents the effect of certain derivative financial instruments on the Consolidated Statements of Income: TABLE 11.4 Nine Months Ended (in millions) Consolidated Statements of Income Location 2023 2022 Interest rate swaps Non-interest income - other $ (1) $ — Interest rate lock commitments Mortgage banking operations — — Forward delivery contracts Mortgage banking operations 4 2 Credit risk contracts Non-interest income - other — — |
Schedule of Offsetting Assets and Liabilities | The following table presents a reconciliation of the net amounts of derivative assets and derivative liabilities presented in the Consolidated Balance Sheets to the net amounts that would result in the event of offset: TABLE 11.5 Amount Not Offset in the (in millions) Net Amount Financial Cash Net September 30, 2023 Derivative Assets Interest rate contracts: Not designated $ 140 $ — $ 140 $ — Total $ 140 $ — $ 140 $ — Derivative Liabilities Interest rate contracts: Designated $ 4 $ — $ 4 $ — Not designated 2 — 2 — Total $ 6 $ — $ 6 $ — 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 $ — |
COMMITMENTS, CREDIT RISK AND _2
COMMITMENTS, CREDIT RISK AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Off-Balance Sheet Credit Risk Information | Following is a summary of off-balance sheet credit risk information: TABLE 12.1 (in millions) September 30, December 31, Commitments to extend credit $ 13,457 $ 13,250 Standby letters of credit 232 207 |
STOCK INCENTIVE PLANS (Tables)
STOCK INCENTIVE PLANS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Activity Relating to Restricted Stock Units | The following table summarizes the activity relating to restricted stock units during the periods indicated: TABLE 13.1 Nine Months Ended September 30, 2023 2022 Units Weighted Units Weighted Unvested units outstanding at beginning of period 4,821,182 $ 10.30 4,680,786 $ 9.71 Granted 1,426,146 12.71 1,266,821 13.07 Acquired — — 60,300 9.41 Net adjustment 172,874 — 244,258 9.34 Vested (2,310,042) 7.03 (1,683,372) 10.58 Forfeited/expired/canceled (605,383) 7.93 (219,058) 10.95 Dividend reinvestment — — 137,976 11.91 Unvested units outstanding at end of period 3,504,777 12.88 4,487,711 10.31 |
Schedule of Certain Information Related to Restricted Stock Units | The following table provides certain information related to restricted stock units: TABLE 13.2 (in millions) Nine Months Ended 2023 2022 Stock-based compensation expense $ 15 $ 15 Tax benefit related to stock-based compensation expense 3 3 Fair value of units vested 18 21 |
Schedule of Components of Restricted Stock Units | The components of the restricted stock units as of September 30, 2023 are as follows: TABLE 13.3 (dollars in millions) Service- Performance- Total Unvested restricted stock units 2,541,229 963,548 3,504,777 Unrecognized compensation expense $ 13 $ — $ 13 Intrinsic value $ 27 $ 10 $ 37 Weighted average remaining life (in years) 1.90 1.61 1.82 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | Federal and state income tax expense and the statutory tax rate and the actual effective tax rate consist of the following: TABLE 14.1 Three Months Ended Nine Months Ended (dollars in millions) 2023 2022 2023 2022 Current income taxes: Federal taxes $ 12 $ 32 $ 79 $ 61 State taxes 3 2 8 7 Total current income taxes 15 34 87 68 Deferred income taxes: Federal taxes 3 — 2 8 State taxes 1 1 2 1 Total deferred income taxes 4 1 4 9 Total income taxes $ 19 $ 35 $ 91 $ 77 Statutory federal tax rate 21.0 % 21.0 % 21.0 % 21.0 % Effective tax rate 11.5 20.7 17.4 20.5 |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Changes in AOCI, Net of Tax, by Component | The following table presents changes in AOCI, net of tax, by component: TABLE 15.1 (in millions) Unrealized Unrealized Unrecognized Total Nine Months Ended September 30, 2023 Balance at beginning of period $ (269) $ (44) $ (44) $ (357) Other comprehensive (loss) income before reclassifications (22) (17) 1 (38) Amounts reclassified from AOCI — 13 — 13 Net current period other comprehensive (loss) income (22) (4) 1 (25) Balance at end of period $ (291) $ (48) $ (43) $ (382) |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: TABLE 16.1 Three Months Ended Nine Months Ended ( dollars in millions, except per share data) 2023 2022 2023 2022 Net income $ 145 $ 138 $ 434 $ 300 Less: Preferred stock dividends 2 2 6 6 Net income available to common stockholders $ 143 $ 136 $ 428 $ 294 Basic weighted average common shares outstanding 360,847,457 350,910,562 360,603,432 348,868,423 Net effect of dilutive stock options and restricted stock 930,968 3,743,917 2,501,504 3,917,702 Diluted weighted average common shares outstanding 361,778,425 354,654,479 363,104,936 352,786,125 Earnings per common share: Basic $ 0.40 $ 0.39 $ 1.19 $ 0.84 Diluted $ 0.40 $ 0.38 $ 1.18 $ 0.83 |
CASH FLOW INFORMATION (Tables)
CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Supplemental Cash Flow Information | Following is a summary of supplemental cash flow information: TABLE 17.1 Nine Months Ended (in millions) 2023 2022 Interest paid on deposits and other borrowings $ 420 $ 88 Income taxes paid 94 56 Transfers of loans to other real estate owned 2 1 Loans transferred to portfolio from held for sale 33 — |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information for Segments of FNB | The following tables provide financial information for these segments of FNB. The information provided under the caption “Parent and Other” represents operations not considered to be reportable segments and/or general operating expenses of FNB, and includes the parent company, other non-bank subsidiaries and eliminations and adjustments to reconcile to the Consolidated Financial Statements. TABLE 18.1 (in millions) Community Wealth Insurance Parent and Consolidated At or for the Three Months Ended September 30, 2023 Interest income $ 512 $ — $ — $ 1 $ 513 Interest expense 180 — — 7 187 Net interest income 332 — — (6) 326 Provision for credit losses 25 — — — 25 Non-interest income 60 18 4 (1) 81 Non-interest expense (1) 194 12 5 2 213 Amortization of intangibles 5 — — — 5 Income tax expense (benefit) 19 2 — (2) 19 Net income (loss) 149 4 (1) (7) 145 Total assets 45,305 40 30 121 45,496 Total intangibles 2,516 9 26 — 2,551 At or for the Three Months Ended September 30, 2022 Interest income $ 342 $ — $ — $ 1 $ 343 Interest expense 41 — — 5 46 Net interest income 301 — — (4) 297 Provision for credit losses 12 — — — 12 Non-interest income 62 16 7 (2) 83 Non-interest expense (1) 174 11 5 2 192 Amortization of intangibles 3 — — — 3 Income tax expense (benefit) 36 1 — (2) 35 Net income (loss) 138 4 2 (6) 138 Total assets 42,458 37 33 62 42,590 Total intangibles 2,451 9 27 — 2,487 (1) Excludes amortization of intangibles, which is presented separately. (in millions) Community Wealth Insurance Parent and Consolidated At or for the Nine Months Ended September 30, 2023 Interest income $ 1,437 $ — $ — $ 4 $ 1,441 Interest expense 425 — — 24 449 Net interest income 1,012 — — (20) 992 Provision for credit losses 58 — — — 58 Non-interest income 172 54 18 (3) 241 Non-interest expense (1) 576 38 14 7 635 Amortization of intangibles 15 — — — 15 Income tax expense (benefit) 96 4 1 (10) 91 Net income (loss) 439 12 3 (20) 434 Total assets 45,305 40 30 121 45,496 Total intangibles 2,516 9 26 — 2,551 At or for the Nine Months Ended September 30, 2022 Interest income $ 874 $ — $ — $ 3 $ 877 Interest expense 82 — — 10 92 Net interest income 792 — — (7) 785 Provision for credit losses 35 — — 1 36 Non-interest income 179 48 20 (4) 243 Non-interest expense (1) 554 32 14 5 605 Amortization of intangibles 9 — 1 — 10 Income tax expense (benefit) 78 3 1 (5) 77 Net income (loss) 295 13 4 (12) 300 Total assets 42,458 37 33 62 42,590 Total intangibles 2,451 9 27 — 2,487 (1) Excludes amortization of intangibles, which is presented separately. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the balances of assets and liabilities measured at fair value on a recurring basis: TABLE 19.1 (in millions) Level 1 Level 2 Level 3 Total September 30, 2023 Assets Measured at Fair Value Debt securities available for sale U.S. Treasury $ 306 $ — $ — $ 306 U.S. government agencies — 86 — 86 U.S. government-sponsored entities — 303 — 303 Residential mortgage-backed securities: Agency mortgage-backed securities — 1,032 — 1,032 Agency collateralized mortgage obligations — 840 — 840 Commercial mortgage-backed securities — 521 — 521 States of the U.S. and political subdivisions (municipals) — 26 — 26 Other debt securities — 31 — 31 Total debt securities available for sale 306 2,839 — 3,145 Loans held for sale — 92 — 92 Derivative financial instruments Trading — 142 — 142 Not for trading — 3 — 3 Total derivative financial instruments — 145 — 145 Total assets measured at fair value on a recurring basis $ 306 $ 3,076 $ — $ 3,382 Liabilities Measured at Fair Value Derivative financial instruments Trading $ — $ 462 $ — $ 462 Not for trading — 4 3 7 Total derivative financial instruments — 466 3 469 Total liabilities measured at fair value on a recurring basis $ — $ 466 $ 3 $ 469 (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 |
Schedule of Additional Information about Assets Measured at Fair Value on Recurring Basis | The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value: TABLE 19.2 (in millions) Other Interest Total Nine Months Ended September 30, 2023 Balance at beginning of period $ — $ — $ — Purchases, issuances, sales and settlements: Issuances — 1 1 Settlements — (1) (1) Balance at end of period $ — $ — $ — 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 $ — $ — $ — |
Schedule of Additional Information about Assets Measured at Fair Value on Non-Recurring Basis | For assets measured at fair value on a non-recurring basis still held at the Balance Sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios: TABLE 19.3 (in millions) Level 1 Level 2 Level 3 Total September 30, 2023 Collateral dependent loans $ — $ — $ 31 $ 31 Other assets - SBA servicing asset — — 2 2 Other real estate owned — — 2 2 December 31, 2022 Collateral dependent loans $ — $ — $ 34 $ 34 Other assets - SBA servicing asset — — 2 2 Other real estate owned — — 3 3 |
Schedule of Fair Values of Financial Instruments | The fair values of our financial instruments are as follows: TABLE 19.4 Fair Value Measurements (in millions) Carrying Fair Level 1 Level 2 Level 3 September 30, 2023 Financial Assets Cash and cash equivalents $ 1,637 $ 1,637 $ 1,637 $ — $ — Debt securities available for sale 3,145 3,145 306 2,839 — Debt securities held to maturity 3,922 3,403 — 3,403 — Net loans and leases, including loans held for sale 31,860 29,733 — 92 29,641 Loan servicing rights 60 77 — — 77 Derivative assets 145 145 — 145 — Accrued interest receivable 158 158 158 — — Financial Liabilities Deposits 34,615 34,534 28,822 5,712 — Short-term borrowings 2,066 2,064 2,064 — — Long-term borrowings 1,968 1,923 — 1,187 736 Derivative liabilities 469 469 — 466 3 Accrued interest payable 60 60 60 — — 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 — — |
NATURE OF OPERATIONS - Addition
NATURE OF OPERATIONS - Additional Information (Details) | Sep. 30, 2023 state branch |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states, company operating financial services | state | 7 |
Number of branches | branch | 346 |
MERGERS AND ACQUISITIONS - Addi
MERGERS AND ACQUISITIONS - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Dec. 09, 2022 | Jan. 22, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||||
Merger-related | $ 0 | $ 2,000,000 | $ 2,000,000 | $ 33,000,000 | |||
Core deposit intangibles | $ 74,000,000 | 74,000,000 | $ 89,000,000 | ||||
Core Deposits | |||||||
Business Acquisition [Line Items] | |||||||
Core deposit intangibles | $ 41,000,000 | ||||||
Howard | |||||||
Business Acquisition [Line Items] | |||||||
Assets acquired as a result of merger | $ 2,351,000,000 | ||||||
Loans and deposits acquired as a result of merger | 1,800,000,000 | ||||||
Value of acquisition | 443,000,000 | ||||||
Merger-related | 0 | $ 30,600,000 | |||||
Financing receivable, purchased with credit deterioration, amount at purchase price | 186,900,000 | ||||||
Allowance for PCD loans and leases at acquisition | 10,000,000 | ||||||
Financing receivable, purchased with credit deterioration, discount (premium) | 5,400,000 | ||||||
Financing receivable, purchased with credit deterioration, fair value | 171,500,000 | ||||||
Financing receivable, non-purchased credit deterioration loans, allowance for credit loss at acquisition date, provision | 19,100,000 | ||||||
Loans | 1,780,000,000 | ||||||
Howard | Allowance for credit losses on loans and leases | |||||||
Business Acquisition [Line Items] | |||||||
Financing receivable, non-purchased credit deterioration loans, allowance for credit loss at acquisition date, provision | $ 19,100,000 | ||||||
Howard | Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Number of shares issued (in shares) | 34,074,495 | ||||||
Common shares to be acquired (in shares) | 18,930,329 | ||||||
Union | |||||||
Business Acquisition [Line Items] | |||||||
Assets acquired as a result of merger | 1,077,000,000 | ||||||
Value of acquisition | 126,000,000 | ||||||
Merger-related | $ 2,200,000 | ||||||
Financing receivable, purchased with credit deterioration, amount at purchase price | 36,900,000 | ||||||
Allowance for PCD loans and leases at acquisition | 1,800,000 | ||||||
Financing receivable, purchased with credit deterioration, discount (premium) | 500,000 | ||||||
Financing receivable, purchased with credit deterioration, fair value | 34,700,000 | ||||||
Loans | 652,000,000 | ||||||
Deposits | 1,000,000,000 | ||||||
Union | Allowance for credit losses on loans and leases | |||||||
Business Acquisition [Line Items] | |||||||
Financing receivable, non-purchased credit deterioration loans, allowance for credit loss at acquisition date, provision | $ 9,400,000 | ||||||
Union | Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Number of shares issued (in shares) | 9,672,691 | ||||||
Common shares to be acquired (in shares) | 6,008,123 |
MERGERS AND ACQUISITIONS - Bala
MERGERS AND ACQUISITIONS - Balance Sheets Disclosures (Detail) - USD ($) $ in Millions | Dec. 09, 2022 | Jan. 22, 2022 | Sep. 30, 2023 | Dec. 31, 2022 |
Fair value of liabilities assumed: | ||||
Goodwill recognized | $ 2,477 | $ 2,477 | ||
Howard | ||||
Business Acquisition [Line Items] | ||||
Fair value of consideration paid | $ 443 | |||
Fair value of identifiable assets acquired: | ||||
Cash and cash equivalents | 75 | |||
Securities | 321 | |||
Loans | 1,780 | |||
Core deposit and other intangible assets | 19 | |||
Fixed and other assets | 156 | |||
Total identifiable assets acquired | 2,351 | |||
Fair value of liabilities assumed: | ||||
Deposits | 1,831 | |||
Borrowings | 247 | |||
Other liabilities | 7 | |||
Total liabilities assumed | 2,085 | |||
Fair value of net identifiable assets acquired | 266 | |||
Goodwill recognized | $ 177 | |||
Union | ||||
Business Acquisition [Line Items] | ||||
Fair value of consideration paid | $ 126 | |||
Fair value of identifiable assets acquired: | ||||
Cash and cash equivalents | 113 | |||
Securities | 212 | |||
Loans | 652 | |||
Core deposit and other intangible assets | 41 | |||
Fixed and other assets | 59 | |||
Total identifiable assets acquired | 1,077 | |||
Fair value of liabilities assumed: | ||||
Deposits | 956 | |||
Borrowings | 30 | |||
Other liabilities | 3 | |||
Total liabilities assumed | 989 | |||
Fair value of net identifiable assets acquired | 88 | |||
Goodwill recognized | $ 38 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule Of Securities [Line Items] | ||
Debt securities available for sale, allowance for credit losses | $ 0 | $ 0 |
Debt securities, available-for-sale, accrued interest, after allowance for credit loss | 10,400,000 | 8,900,000 |
Debt securities held to maturity, allowance for credit losses | 300,000 | 230,000 |
Debt securities, held-to-maturity, accrued interest, after allowance for credit loss | 13,400,000 | 14,000,000 |
Municipal bond portfolio, value | $ 1,000,000,000 | |
Percentage of formal credit enhancement insurance of municipalities | 61% | |
Corporate bond portfolio, at carrying value | $ 47,000,000 | |
Municipal Bonds | Weighted Average | ||
Schedule Of Securities [Line Items] | ||
Average holding size of securities in bond portfolio | $ 2,500,000 | |
Municipal Bonds | Credit Concentration Risk | General Obligation Bonds | A Rating or Better | Minimum | ||
Schedule Of Securities [Line Items] | ||
Percentage of portfolio | 100% | |
Municipal Bonds | Geographic Concentration Risk | Pennsylvania, Ohio and Maryland | ||
Schedule Of Securities [Line Items] | ||
Percentage of portfolio | 60% | |
Corporate Bond | Weighted Average | ||
Schedule Of Securities [Line Items] | ||
Average holding size of securities in bond portfolio | $ 2,800,000 | |
US government | ||
Schedule Of Securities [Line Items] | ||
Unrealized loss on debt securities, available-for-sale and held-to-maturity, backed or sponsored percentage | 84.60% | |
States of the U.S. and political subdivisions (municipals) | ||
Schedule Of Securities [Line Items] | ||
Debt securities held to maturity, allowance for credit losses | $ 60,000 | 70,000 |
Other debt securities | ||
Schedule Of Securities [Line Items] | ||
Debt securities held to maturity, allowance for credit losses | $ 240,000 | $ 160,000 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 3,520 | $ 3,622 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | (376) | (348) |
Fair Value | 3,145 | 3,275 |
U.S. Treasury | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 327 | 278 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (21) | (21) |
Fair Value | 306 | 257 |
U.S. government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 85 | 107 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 86 | 108 |
U.S. government-sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 323 | 283 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (20) | (21) |
Fair Value | 303 | 262 |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,171 | 1,360 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (139) | (128) |
Fair Value | 1,032 | 1,232 |
Agency collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 986 | 1,110 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (146) | (138) |
Fair Value | 840 | 972 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 565 | 430 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (44) | (35) |
Fair Value | 521 | 395 |
States of the U.S. and political subdivisions (municipals) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 30 | 33 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (4) | (4) |
Fair Value | 26 | 29 |
Other debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 33 | 21 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (1) |
Fair Value | $ 31 | $ 20 |
SECURITIES - Amortized Cost a_2
SECURITIES - Amortized Cost and Fair Value of Securities Held to Maturity (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Investment Securities Held To Maturity [Line Items] | ||
Amortized Cost | $ 3,922 | $ 4,087 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | (519) | (403) |
Fair Value | 3,403 | 3,687 |
U.S. government agencies | ||
Investment Securities Held To Maturity [Line Items] | ||
Amortized Cost | 1 | 1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1 | 1 |
U.S. government-sponsored entities | ||
Investment Securities Held To Maturity [Line Items] | ||
Amortized Cost | 93 | 52 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 92 | 52 |
Agency mortgage-backed securities | ||
Investment Securities Held To Maturity [Line Items] | ||
Amortized Cost | 1,052 | 1,178 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (144) | (125) |
Fair Value | 908 | 1,053 |
Agency collateralized mortgage obligations | ||
Investment Securities Held To Maturity [Line Items] | ||
Amortized Cost | 852 | 953 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (132) | (120) |
Fair Value | 720 | 833 |
Commercial mortgage-backed securities | ||
Investment Securities Held To Maturity [Line Items] | ||
Amortized Cost | 891 | 866 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (68) | (50) |
Fair Value | 823 | 818 |
States of the U.S. and political subdivisions (municipals) | ||
Investment Securities Held To Maturity [Line Items] | ||
Amortized Cost | 1,017 | 1,025 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (172) | (107) |
Fair Value | 845 | 919 |
Other debt securities | ||
Investment Securities Held To Maturity [Line Items] | ||
Amortized Cost | 16 | 12 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (1) |
Fair Value | $ 14 | $ 11 |
SECURITIES - Amortized Cost a_3
SECURITIES - Amortized Cost and Fair Value of Securities, by Contractual Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule Of Securities [Line Items] | ||
Available for sale, due in one year or less, amortized cost | $ 54 | |
Available for sale, due after one year but within five years, amortized cost | 655 | |
Available for sale, due after five years but within ten years, amortized cost | 53 | |
Available for sale, due after ten years, amortized cost | 36 | |
Available for sale, with contractual maturities, amortized cost | 798 | |
Amortized Cost | 3,520 | $ 3,622 |
Available for sale, due in one year or less, fair value | 54 | |
Available for sale, due after one year but within five years, fair value | 612 | |
Available for sale, due after five years but within ten years, fair value | 51 | |
Available for sale, due after ten years, fair value | 35 | |
Available for sale, with contractual maturities, fair value | 752 | |
Fair Value | 3,145 | 3,275 |
Held to maturity, due in one year or less, amortized cost | 2 | |
Held to maturity, due after one year but within five years, amortized cost | 140 | |
Held to maturity, due after five years but within ten years, amortized cost | 224 | |
Held to maturity, due after ten years, amortized cost | 761 | |
Held to maturity, with contractual maturities, amortized cost | 1,127 | |
Amortized Cost | 3,922 | 4,087 |
Held to maturity, due in one year or less, fair value | 2 | |
Held to maturity, due after one year but within five years, fair value | 136 | |
Held to maturity, due after five years but within ten years, fair value | 196 | |
Held to maturity, due after ten years, fair value | 618 | |
Held to maturity, with contractual maturities, fair value | 952 | |
Fair Value | 3,403 | 3,687 |
Agency mortgage-backed securities | ||
Schedule Of Securities [Line Items] | ||
Available-for-sale, amortized cost | 1,171 | |
Amortized Cost | 1,171 | 1,360 |
Available for sale, fair value | 1,032 | |
Fair Value | 1,032 | 1,232 |
Held to maturity, amortized cost | 1,052 | |
Amortized Cost | 1,052 | 1,178 |
Held to maturity, fair value | 908 | |
Fair Value | 908 | 1,053 |
Agency collateralized mortgage obligations | ||
Schedule Of Securities [Line Items] | ||
Available-for-sale, amortized cost | 986 | |
Amortized Cost | 986 | 1,110 |
Available for sale, fair value | 840 | |
Fair Value | 840 | 972 |
Held to maturity, amortized cost | 852 | |
Amortized Cost | 852 | 953 |
Held to maturity, fair value | 720 | |
Fair Value | 720 | 833 |
Commercial mortgage-backed securities | ||
Schedule Of Securities [Line Items] | ||
Available-for-sale, amortized cost | 565 | |
Amortized Cost | 565 | 430 |
Available for sale, fair value | 521 | |
Fair Value | 521 | 395 |
Held to maturity, amortized cost | 891 | |
Amortized Cost | 891 | 866 |
Held to maturity, fair value | 823 | |
Fair Value | $ 823 | $ 818 |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities Pledged as Collateral (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Securities pledged (carrying value), to secure public deposits, trust deposits and for other purposes as required by law | $ 5,995 | $ 6,403 |
Securities pledged (carrying value), as collateral for short-term borrowings | $ 281 | $ 348 |
Securities pledged as a percent of total securities | 88.80% | 91.70% |
SECURITIES - Fair Values and Un
SECURITIES - Fair Values and Unrealized Losses of Impaired Securities, by Length of Impairment (Details) $ in Millions | Sep. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Schedule Of Securities [Line Items] | ||
Debt securities, available-for-sale, less than 12 months, number of positions | security | 21 | 198 |
Debt securities, available-for-sale, 12 months or longer, number of positions | security | 250 | 67 |
Debt securities, available-for-sale, number of positions | security | 271 | 265 |
Debt securities, available-for-sale, less than 12 months | $ 232 | $ 1,868 |
Debt securities, available-for-sale, 12 months or longer | 2,810 | 1,343 |
Debt securities, available-for-sale, unrealized loss position | 3,042 | 3,211 |
Debt securities, available-for-sale, less than 12 months, accumulated loss | (4) | (138) |
Debt securities, available-for-sale, 12 months or longer, accumulated loss | (372) | (210) |
Debt securities, available-for-sale, accumulated loss | $ (376) | $ (348) |
U.S. Treasury | ||
Schedule Of Securities [Line Items] | ||
Debt securities, available-for-sale, less than 12 months, number of positions | security | 0 | 3 |
Debt securities, available-for-sale, 12 months or longer, number of positions | security | 6 | 3 |
Debt securities, available-for-sale, number of positions | security | 6 | 6 |
Debt securities, available-for-sale, less than 12 months | $ 0 | $ 120 |
Debt securities, available-for-sale, 12 months or longer | 257 | 137 |
Debt securities, available-for-sale, unrealized loss position | 257 | 257 |
Debt securities, available-for-sale, less than 12 months, accumulated loss | 0 | (7) |
Debt securities, available-for-sale, 12 months or longer, accumulated loss | (21) | (14) |
Debt securities, available-for-sale, accumulated loss | $ (21) | $ (21) |
U.S. government agencies | ||
Schedule Of Securities [Line Items] | ||
Debt securities, available-for-sale, less than 12 months, number of positions | security | 5 | 6 |
Debt securities, available-for-sale, 12 months or longer, number of positions | security | 8 | 8 |
Debt securities, available-for-sale, number of positions | security | 13 | 14 |
Debt securities, available-for-sale, less than 12 months | $ 24 | $ 46 |
Debt securities, available-for-sale, 12 months or longer | 15 | 4 |
Debt securities, available-for-sale, unrealized loss position | 39 | 50 |
Debt securities, available-for-sale, less than 12 months, accumulated loss | 0 | 0 |
Debt securities, available-for-sale, 12 months or longer, accumulated loss | 0 | 0 |
Debt securities, available-for-sale, accumulated loss | $ 0 | $ 0 |
U.S. government-sponsored entities | ||
Schedule Of Securities [Line Items] | ||
Debt securities, available-for-sale, less than 12 months, number of positions | security | 2 | 9 |
Debt securities, available-for-sale, 12 months or longer, number of positions | security | 10 | 4 |
Debt securities, available-for-sale, number of positions | security | 12 | 13 |
Debt securities, available-for-sale, less than 12 months | $ 50 | $ 150 |
Debt securities, available-for-sale, 12 months or longer | 253 | 112 |
Debt securities, available-for-sale, unrealized loss position | 303 | 262 |
Debt securities, available-for-sale, less than 12 months, accumulated loss | 0 | (8) |
Debt securities, available-for-sale, 12 months or longer, accumulated loss | (20) | (13) |
Debt securities, available-for-sale, accumulated loss | $ (20) | $ (21) |
Agency mortgage-backed securities | ||
Schedule Of Securities [Line Items] | ||
Debt securities, available-for-sale, less than 12 months, number of positions | security | 7 | 104 |
Debt securities, available-for-sale, 12 months or longer, number of positions | security | 114 | 13 |
Debt securities, available-for-sale, number of positions | security | 121 | 117 |
Debt securities, available-for-sale, less than 12 months | $ 2 | $ 773 |
Debt securities, available-for-sale, 12 months or longer | 1,029 | 455 |
Debt securities, available-for-sale, unrealized loss position | 1,031 | 1,228 |
Debt securities, available-for-sale, less than 12 months, accumulated loss | 0 | (58) |
Debt securities, available-for-sale, 12 months or longer, accumulated loss | (139) | (70) |
Debt securities, available-for-sale, accumulated loss | $ (139) | $ (128) |
Agency collateralized mortgage obligations | ||
Schedule Of Securities [Line Items] | ||
Debt securities, available-for-sale, less than 12 months, number of positions | security | 0 | 49 |
Debt securities, available-for-sale, 12 months or longer, number of positions | security | 71 | 23 |
Debt securities, available-for-sale, number of positions | security | 71 | 72 |
Debt securities, available-for-sale, less than 12 months | $ 0 | $ 455 |
Debt securities, available-for-sale, 12 months or longer | 840 | 517 |
Debt securities, available-for-sale, unrealized loss position | 840 | 972 |
Debt securities, available-for-sale, less than 12 months, accumulated loss | 0 | (42) |
Debt securities, available-for-sale, 12 months or longer, accumulated loss | (146) | (96) |
Debt securities, available-for-sale, accumulated loss | $ (146) | $ (138) |
Commercial mortgage-backed securities | ||
Schedule Of Securities [Line Items] | ||
Debt securities, available-for-sale, less than 12 months, number of positions | security | 5 | 16 |
Debt securities, available-for-sale, 12 months or longer, number of positions | security | 21 | 5 |
Debt securities, available-for-sale, number of positions | security | 26 | 21 |
Debt securities, available-for-sale, less than 12 months | $ 148 | $ 302 |
Debt securities, available-for-sale, 12 months or longer | 373 | 94 |
Debt securities, available-for-sale, unrealized loss position | 521 | 396 |
Debt securities, available-for-sale, less than 12 months, accumulated loss | (3) | (21) |
Debt securities, available-for-sale, 12 months or longer, accumulated loss | (41) | (14) |
Debt securities, available-for-sale, accumulated loss | $ (44) | $ (35) |
States of the U.S. and political subdivisions (municipals) | ||
Schedule Of Securities [Line Items] | ||
Debt securities, available-for-sale, less than 12 months, number of positions | security | 0 | 4 |
Debt securities, available-for-sale, 12 months or longer, number of positions | security | 13 | 10 |
Debt securities, available-for-sale, number of positions | security | 13 | 14 |
Debt securities, available-for-sale, less than 12 months | $ 0 | $ 7 |
Debt securities, available-for-sale, 12 months or longer | 26 | 22 |
Debt securities, available-for-sale, unrealized loss position | 26 | 29 |
Debt securities, available-for-sale, less than 12 months, accumulated loss | 0 | (1) |
Debt securities, available-for-sale, 12 months or longer, accumulated loss | (4) | (3) |
Debt securities, available-for-sale, accumulated loss | $ (4) | $ (4) |
Other debt securities | ||
Schedule Of Securities [Line Items] | ||
Debt securities, available-for-sale, less than 12 months, number of positions | security | 2 | 7 |
Debt securities, available-for-sale, 12 months or longer, number of positions | security | 7 | 1 |
Debt securities, available-for-sale, number of positions | security | 9 | 8 |
Debt securities, available-for-sale, less than 12 months | $ 8 | $ 15 |
Debt securities, available-for-sale, 12 months or longer | 17 | 2 |
Debt securities, available-for-sale, unrealized loss position | 25 | 17 |
Debt securities, available-for-sale, less than 12 months, accumulated loss | (1) | (1) |
Debt securities, available-for-sale, 12 months or longer, accumulated loss | (1) | 0 |
Debt securities, available-for-sale, accumulated loss | $ (2) | $ (1) |
LOANS AND LEASES - Additional I
LOANS AND LEASES - Additional Information (Details) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) state | Dec. 31, 2022 USD ($) | Dec. 09, 2022 USD ($) | Jan. 22, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accrued interest receivable | $ 124,000,000 | $ 99,300,000 | ||
Discount remaining | $ 46,700,000 | 58,600,000 | ||
Number of states, company operating financial services | state | 7 | |||
Loan modification, accrued interest receivable | $ 80,000 | |||
Pooled reserves for all other classes of loans | $ 3,800,000 | 3,800,000 | ||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past due period for loan to be in default | 90 days | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Past due period for loan to be in default | 12 months | |||
Residential Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value of OREO through foreclosure | $ 1,600,000 | 1,100,000 | ||
Mortgage loans on real estate, foreclosure | 9,900,000 | 11,800,000 | ||
Total commercial loans and leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans modified, specific reserves | 1,400,000 | 0 | ||
Loans modified, pooled reserves | 1,500,000 | $ 1,100,000 | ||
Total commercial loans and leases | Commercial loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, collateral dependent | 47,300,000 | |||
Threshold for loans whose terms have been modified in a trouble debt restructuring, non accrual | $ 1,000,000 | |||
Howard | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Discount remaining | $ 10,100,000 | |||
Union | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Discount remaining | $ 30,900,000 |
LOANS AND LEASES - Net of Unear
LOANS AND LEASES - Net of Unearned Income (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amortized cost loans and leases, carrying amount | [1] | $ 32,151 | $ 30,255 |
Total commercial loans and leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amortized cost loans and leases, carrying amount | 20,146 | 19,290 | |
Total commercial loans and leases | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amortized cost loans and leases, carrying amount | 11,962 | 11,526 | |
Total commercial loans and leases | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amortized cost loans and leases, carrying amount | 7,462 | 7,131 | |
Total commercial loans and leases | Commercial leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amortized cost loans and leases, carrying amount | 562 | 519 | |
Total commercial loans and leases | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amortized cost loans and leases, carrying amount | 160 | 114 | |
Total consumer loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amortized cost loans and leases, carrying amount | 12,005 | 10,965 | |
Total consumer loans | Direct installment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amortized cost loans and leases, carrying amount | 2,754 | 2,784 | |
Total consumer loans | Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amortized cost loans and leases, carrying amount | 6,434 | 5,297 | |
Total consumer loans | Indirect installment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amortized cost loans and leases, carrying amount | 1,519 | 1,553 | |
Total consumer loans | Consumer lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amortized cost loans and leases, carrying amount | $ 1,298 | $ 1,331 | |
[1]Amount represents loans for which we have elected the fair value option. See Note 19. |
LOANS AND LEASES - Commercial R
LOANS AND LEASES - Commercial Real Estate Loans (Details) - Loan Portfolio Diversification Risk - Commercial real estate | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Percent owner-occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Percent of total loans and leases | 29% | 30.20% |
Percent non-owner-occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Percent of total loans and leases | 71% | 69.80% |
LOANS AND LEASES - Origination
LOANS AND LEASES - Origination Year (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | $ 4,320 | $ 4,320 | $ 7,061 | |||
Fiscal year before current fiscal year | 6,907 | 6,907 | 6,630 | |||
Two years before current fiscal year | 6,194 | 6,194 | 4,128 | |||
Three years before current fiscal year | 3,741 | 3,741 | 2,669 | |||
Four years before current fiscal year | 2,397 | 2,397 | 1,571 | |||
Prior | 5,415 | 5,415 | 4,816 | |||
Revolving Loans Amortized Cost Basis | 3,177 | 3,177 | 3,380 | |||
Total Loans and Leases | [1] | 32,151 | 32,151 | 30,255 | ||
Current fiscal year, writeoff | 0.3 | |||||
Fiscal year before current fiscal year, writeoff | 3.3 | |||||
Two years before current fiscal year, writeoff | 3.7 | |||||
Three years before current fiscal year, writeoff | 1.3 | |||||
Four years before current fiscal year, writeoff | 1.8 | |||||
Prior, writeoff | 59.2 | |||||
Revolving Loans Amortized Cost Basis, writeoff | 0 | |||||
Total Loans and Leases, writeoff | 69.6 | |||||
Current | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 31,949 | 31,949 | 30,039 | |||
Past due | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 202 | 202 | 216 | |||
Total commercial loans and leases | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 2,510 | 2,510 | 3,915 | |||
Fiscal year before current fiscal year | 3,772 | 3,772 | 3,766 | |||
Two years before current fiscal year | 3,551 | 3,551 | 2,629 | |||
Three years before current fiscal year | 2,397 | 2,397 | 2,033 | |||
Four years before current fiscal year | 1,846 | 1,846 | 1,261 | |||
Prior | 3,945 | 3,945 | 3,397 | |||
Revolving Loans Amortized Cost Basis | 2,125 | 2,125 | 2,289 | |||
Total Loans and Leases | 20,146 | 20,146 | 19,290 | |||
Total Loans and Leases, writeoff | 38.7 | $ 3 | 60.7 | $ 10.4 | ||
Total commercial loans and leases | Current | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 20,034 | 20,034 | 19,179 | |||
Total commercial loans and leases | Past due | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 112 | 112 | 111 | |||
Total commercial loans and leases | Commercial real estate | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 968 | 968 | 2,013 | |||
Fiscal year before current fiscal year | 2,140 | 2,140 | 2,390 | |||
Two years before current fiscal year | 2,410 | 2,410 | 1,765 | |||
Three years before current fiscal year | 1,658 | 1,658 | 1,404 | |||
Four years before current fiscal year | 1,317 | 1,317 | 849 | |||
Prior | 3,211 | 3,211 | 2,822 | |||
Revolving Loans Amortized Cost Basis | 258 | 258 | 283 | |||
Total Loans and Leases | 11,962 | 11,962 | 11,526 | |||
Current fiscal year, writeoff | 0 | |||||
Fiscal year before current fiscal year, writeoff | 0.1 | |||||
Two years before current fiscal year, writeoff | 0.2 | |||||
Three years before current fiscal year, writeoff | 0 | |||||
Four years before current fiscal year, writeoff | 0 | |||||
Prior, writeoff | 8.6 | |||||
Revolving Loans Amortized Cost Basis, writeoff | 0 | |||||
Total Loans and Leases, writeoff | 0.6 | 1.3 | 8.9 | 2.9 | ||
Total commercial loans and leases | Commercial real estate | Current | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 11,903 | 11,903 | 11,474 | |||
Total commercial loans and leases | Commercial real estate | Past due | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 59 | 59 | 52 | |||
Total commercial loans and leases | Commercial real estate | Pass | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 964 | 964 | 1,967 | |||
Fiscal year before current fiscal year | 2,043 | 2,043 | 2,348 | |||
Two years before current fiscal year | 2,356 | 2,356 | 1,678 | |||
Three years before current fiscal year | 1,513 | 1,513 | 1,283 | |||
Four years before current fiscal year | 1,153 | 1,153 | 700 | |||
Prior | 2,825 | 2,825 | 2,447 | |||
Revolving Loans Amortized Cost Basis | 234 | 234 | 258 | |||
Total Loans and Leases | 11,088 | 11,088 | 10,681 | |||
Total commercial loans and leases | Commercial real estate | Special Mention | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 1 | 1 | 43 | |||
Fiscal year before current fiscal year | 74 | 74 | 35 | |||
Two years before current fiscal year | 37 | 37 | 67 | |||
Three years before current fiscal year | 131 | 131 | 74 | |||
Four years before current fiscal year | 99 | 99 | 104 | |||
Prior | 216 | 216 | 208 | |||
Revolving Loans Amortized Cost Basis | 7 | 7 | 5 | |||
Total Loans and Leases | 565 | 565 | 536 | |||
Total commercial loans and leases | Commercial real estate | Substandard | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 3 | 3 | 3 | |||
Fiscal year before current fiscal year | 23 | 23 | 7 | |||
Two years before current fiscal year | 17 | 17 | 20 | |||
Three years before current fiscal year | 14 | 14 | 47 | |||
Four years before current fiscal year | 65 | 65 | 45 | |||
Prior | 170 | 170 | 167 | |||
Revolving Loans Amortized Cost Basis | 17 | 17 | 20 | |||
Total Loans and Leases | 309 | 309 | 309 | |||
Total commercial loans and leases | Commercial and industrial | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 1,280 | 1,280 | 1,655 | |||
Fiscal year before current fiscal year | 1,487 | 1,487 | 1,249 | |||
Two years before current fiscal year | 1,047 | 1,047 | 787 | |||
Three years before current fiscal year | 678 | 678 | 568 | |||
Four years before current fiscal year | 497 | 497 | 375 | |||
Prior | 679 | 679 | 535 | |||
Revolving Loans Amortized Cost Basis | 1,794 | 1,794 | 1,962 | |||
Total Loans and Leases | 7,462 | 7,462 | 7,131 | |||
Current fiscal year, writeoff | 0.1 | |||||
Fiscal year before current fiscal year, writeoff | 0.3 | |||||
Two years before current fiscal year, writeoff | 0.4 | |||||
Three years before current fiscal year, writeoff | 0.6 | |||||
Four years before current fiscal year, writeoff | 1.6 | |||||
Prior, writeoff | 45.5 | |||||
Revolving Loans Amortized Cost Basis, writeoff | 0 | |||||
Total Loans and Leases, writeoff | 37.2 | 0.8 | 48.5 | 5.1 | ||
Total commercial loans and leases | Commercial and industrial | Current | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 7,411 | 7,411 | 7,077 | |||
Total commercial loans and leases | Commercial and industrial | Past due | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 51 | 51 | 54 | |||
Total commercial loans and leases | Commercial and industrial | Pass | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 1,240 | 1,240 | 1,635 | |||
Fiscal year before current fiscal year | 1,464 | 1,464 | 1,194 | |||
Two years before current fiscal year | 930 | 930 | 760 | |||
Three years before current fiscal year | 667 | 667 | 533 | |||
Four years before current fiscal year | 460 | 460 | 289 | |||
Prior | 584 | 584 | 453 | |||
Revolving Loans Amortized Cost Basis | 1,650 | 1,650 | 1,856 | |||
Total Loans and Leases | 6,995 | 6,995 | 6,720 | |||
Total commercial loans and leases | Commercial and industrial | Special Mention | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 12 | 12 | 15 | |||
Fiscal year before current fiscal year | 9 | 9 | 43 | |||
Two years before current fiscal year | 69 | 69 | 16 | |||
Three years before current fiscal year | 3 | 3 | 27 | |||
Four years before current fiscal year | 18 | 18 | 48 | |||
Prior | 38 | 38 | 48 | |||
Revolving Loans Amortized Cost Basis | 33 | 33 | 54 | |||
Total Loans and Leases | 182 | 182 | 251 | |||
Total commercial loans and leases | Commercial and industrial | Substandard | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 28 | 28 | 5 | |||
Fiscal year before current fiscal year | 14 | 14 | 12 | |||
Two years before current fiscal year | 48 | 48 | 11 | |||
Three years before current fiscal year | 8 | 8 | 8 | |||
Four years before current fiscal year | 19 | 19 | 38 | |||
Prior | 57 | 57 | 34 | |||
Revolving Loans Amortized Cost Basis | 111 | 111 | 52 | |||
Total Loans and Leases | 285 | 285 | 160 | |||
Total commercial loans and leases | Commercial leases | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 184 | 184 | 189 | |||
Fiscal year before current fiscal year | 145 | 145 | 127 | |||
Two years before current fiscal year | 94 | 94 | 77 | |||
Three years before current fiscal year | 61 | 61 | 61 | |||
Four years before current fiscal year | 32 | 32 | 37 | |||
Prior | 46 | 46 | 28 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | |||
Total Loans and Leases | 562 | 562 | 519 | |||
Current fiscal year, writeoff | 0 | |||||
Fiscal year before current fiscal year, writeoff | 0 | |||||
Two years before current fiscal year, writeoff | 0 | |||||
Three years before current fiscal year, writeoff | 0 | |||||
Four years before current fiscal year, writeoff | 0 | |||||
Prior, writeoff | 0 | |||||
Revolving Loans Amortized Cost Basis, writeoff | 0 | |||||
Total Loans and Leases, writeoff | 0 | 0 | 0 | 0.1 | ||
Total commercial loans and leases | Commercial leases | Current | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 561 | 561 | 515 | |||
Total commercial loans and leases | Commercial leases | Past due | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 1 | 1 | 4 | |||
Total commercial loans and leases | Commercial leases | Pass | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 177 | 177 | 187 | |||
Fiscal year before current fiscal year | 142 | 142 | 121 | |||
Two years before current fiscal year | 89 | 89 | 69 | |||
Three years before current fiscal year | 54 | 54 | 59 | |||
Four years before current fiscal year | 29 | 29 | 36 | |||
Prior | 45 | 45 | 27 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | |||
Total Loans and Leases | 536 | 536 | 499 | |||
Total commercial loans and leases | Commercial leases | Special Mention | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 0 | 0 | 0 | |||
Fiscal year before current fiscal year | 0 | 0 | 1 | |||
Two years before current fiscal year | 0 | 0 | 0 | |||
Three years before current fiscal year | 0 | 0 | 1 | |||
Four years before current fiscal year | 1 | 1 | 0 | |||
Prior | 0 | 0 | 0 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | |||
Total Loans and Leases | 1 | 1 | 2 | |||
Total commercial loans and leases | Commercial leases | Substandard | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 7 | 7 | 2 | |||
Fiscal year before current fiscal year | 3 | 3 | 5 | |||
Two years before current fiscal year | 5 | 5 | 8 | |||
Three years before current fiscal year | 7 | 7 | 1 | |||
Four years before current fiscal year | 2 | 2 | 1 | |||
Prior | 1 | 1 | 1 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | |||
Total Loans and Leases | 25 | 25 | 18 | |||
Total commercial loans and leases | Other | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 78 | 78 | 58 | |||
Fiscal year before current fiscal year | 0 | 0 | 0 | |||
Two years before current fiscal year | 0 | 0 | 0 | |||
Three years before current fiscal year | 0 | 0 | 0 | |||
Four years before current fiscal year | 0 | 0 | 0 | |||
Prior | 9 | 9 | 12 | |||
Revolving Loans Amortized Cost Basis | 73 | 73 | 44 | |||
Total Loans and Leases | 160 | 160 | 114 | |||
Current fiscal year, writeoff | 0 | |||||
Fiscal year before current fiscal year, writeoff | 0 | |||||
Two years before current fiscal year, writeoff | 0 | |||||
Three years before current fiscal year, writeoff | 0 | |||||
Four years before current fiscal year, writeoff | 0 | |||||
Prior, writeoff | 3.3 | |||||
Revolving Loans Amortized Cost Basis, writeoff | 0 | |||||
Total Loans and Leases, writeoff | 0.9 | 0.9 | 3.3 | 2.3 | ||
Total commercial loans and leases | Other | Current | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 159 | 159 | 113 | |||
Total commercial loans and leases | Other | Past due | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 1 | 1 | 1 | |||
Total commercial loans and leases | Other | Pass | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 78 | 78 | 58 | |||
Fiscal year before current fiscal year | 0 | 0 | 0 | |||
Two years before current fiscal year | 0 | 0 | 0 | |||
Three years before current fiscal year | 0 | 0 | 0 | |||
Four years before current fiscal year | 0 | 0 | 0 | |||
Prior | 9 | 9 | 12 | |||
Revolving Loans Amortized Cost Basis | 73 | 73 | 44 | |||
Total Loans and Leases | 160 | 160 | 114 | |||
Total consumer loans | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 1,810 | 1,810 | 3,146 | |||
Fiscal year before current fiscal year | 3,135 | 3,135 | 2,864 | |||
Two years before current fiscal year | 2,643 | 2,643 | 1,499 | |||
Three years before current fiscal year | 1,344 | 1,344 | 636 | |||
Four years before current fiscal year | 551 | 551 | 310 | |||
Prior | 1,470 | 1,470 | 1,419 | |||
Revolving Loans Amortized Cost Basis | 1,052 | 1,052 | 1,091 | |||
Total Loans and Leases | 12,005 | 12,005 | 10,965 | |||
Total Loans and Leases, writeoff | 2.5 | 2.7 | 8.9 | 5.8 | ||
Total consumer loans | Current | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 11,915 | 11,915 | 10,860 | |||
Total consumer loans | Past due | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Total Loans and Leases | 90 | 90 | 105 | |||
Total consumer loans | Direct installment | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 261 | 261 | 801 | |||
Fiscal year before current fiscal year | 736 | 736 | 888 | |||
Two years before current fiscal year | 810 | 810 | 454 | |||
Three years before current fiscal year | 409 | 409 | 164 | |||
Four years before current fiscal year | 143 | 143 | 92 | |||
Prior | 395 | 395 | 385 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | |||
Total Loans and Leases | 2,754 | 2,754 | 2,784 | |||
Current fiscal year, writeoff | 0 | |||||
Fiscal year before current fiscal year, writeoff | 0.1 | |||||
Two years before current fiscal year, writeoff | 0.1 | |||||
Three years before current fiscal year, writeoff | 0.1 | |||||
Four years before current fiscal year, writeoff | 0 | |||||
Prior, writeoff | 0.2 | |||||
Revolving Loans Amortized Cost Basis, writeoff | 0 | |||||
Total Loans and Leases, writeoff | 0.1 | 0.2 | 0.5 | 0.4 | ||
Total consumer loans | Direct installment | Current | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 261 | 261 | 801 | |||
Fiscal year before current fiscal year | 735 | 735 | 887 | |||
Two years before current fiscal year | 809 | 809 | 453 | |||
Three years before current fiscal year | 408 | 408 | 163 | |||
Four years before current fiscal year | 143 | 143 | 91 | |||
Prior | 386 | 386 | 374 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | |||
Total Loans and Leases | 2,742 | 2,742 | 2,769 | |||
Total consumer loans | Direct installment | Past due | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 0 | 0 | 0 | |||
Fiscal year before current fiscal year | 1 | 1 | 1 | |||
Two years before current fiscal year | 1 | 1 | 1 | |||
Three years before current fiscal year | 1 | 1 | 1 | |||
Four years before current fiscal year | 0 | 0 | 1 | |||
Prior | 9 | 9 | 11 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | |||
Total Loans and Leases | 12 | 12 | 15 | |||
Total consumer loans | Residential mortgages | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 1,146 | 1,146 | 1,466 | |||
Fiscal year before current fiscal year | 1,689 | 1,689 | 1,590 | |||
Two years before current fiscal year | 1,544 | 1,544 | 874 | |||
Three years before current fiscal year | 817 | 817 | 380 | |||
Four years before current fiscal year | 353 | 353 | 133 | |||
Prior | 884 | 884 | 852 | |||
Revolving Loans Amortized Cost Basis | 1 | 1 | 2 | |||
Total Loans and Leases | 6,434 | 6,434 | 5,297 | |||
Current fiscal year, writeoff | 0 | |||||
Fiscal year before current fiscal year, writeoff | 0 | |||||
Two years before current fiscal year, writeoff | 0 | |||||
Three years before current fiscal year, writeoff | 0.1 | |||||
Four years before current fiscal year, writeoff | 0 | |||||
Prior, writeoff | 0.6 | |||||
Revolving Loans Amortized Cost Basis, writeoff | 0 | |||||
Total Loans and Leases, writeoff | 0.1 | 0.3 | 0.7 | 0.6 | ||
Total consumer loans | Residential mortgages | Current | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 1,145 | 1,145 | 1,464 | |||
Fiscal year before current fiscal year | 1,684 | 1,684 | 1,587 | |||
Two years before current fiscal year | 1,542 | 1,542 | 871 | |||
Three years before current fiscal year | 815 | 815 | 378 | |||
Four years before current fiscal year | 351 | 351 | 128 | |||
Prior | 853 | 853 | 819 | |||
Revolving Loans Amortized Cost Basis | 1 | 1 | 2 | |||
Total Loans and Leases | 6,391 | 6,391 | 5,249 | |||
Total consumer loans | Residential mortgages | Past due | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 1 | 1 | 2 | |||
Fiscal year before current fiscal year | 5 | 5 | 3 | |||
Two years before current fiscal year | 2 | 2 | 3 | |||
Three years before current fiscal year | 2 | 2 | 2 | |||
Four years before current fiscal year | 2 | 2 | 5 | |||
Prior | 31 | 31 | 33 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | |||
Total Loans and Leases | 43 | 43 | 48 | |||
Total consumer loans | Indirect installment | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 372 | 372 | 805 | |||
Fiscal year before current fiscal year | 646 | 646 | 368 | |||
Two years before current fiscal year | 273 | 273 | 169 | |||
Three years before current fiscal year | 116 | 116 | 89 | |||
Four years before current fiscal year | 52 | 52 | 81 | |||
Prior | 60 | 60 | 41 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | |||
Total Loans and Leases | 1,519 | 1,519 | 1,553 | |||
Current fiscal year, writeoff | 0.2 | |||||
Fiscal year before current fiscal year, writeoff | 2.8 | |||||
Two years before current fiscal year, writeoff | 2.9 | |||||
Three years before current fiscal year, writeoff | 0.5 | |||||
Four years before current fiscal year, writeoff | 0.2 | |||||
Prior, writeoff | 0.3 | |||||
Revolving Loans Amortized Cost Basis, writeoff | 0 | |||||
Total Loans and Leases, writeoff | 2.1 | 1.9 | 6.9 | 4.1 | ||
Total consumer loans | Indirect installment | Current | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 371 | 371 | 800 | |||
Fiscal year before current fiscal year | 638 | 638 | 357 | |||
Two years before current fiscal year | 266 | 266 | 166 | |||
Three years before current fiscal year | 114 | 114 | 88 | |||
Four years before current fiscal year | 51 | 51 | 80 | |||
Prior | 59 | 59 | 40 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | |||
Total Loans and Leases | 1,499 | 1,499 | 1,531 | |||
Total consumer loans | Indirect installment | Past due | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 1 | 1 | 5 | |||
Fiscal year before current fiscal year | 8 | 8 | 11 | |||
Two years before current fiscal year | 7 | 7 | 3 | |||
Three years before current fiscal year | 2 | 2 | 1 | |||
Four years before current fiscal year | 1 | 1 | 1 | |||
Prior | 1 | 1 | 1 | |||
Revolving Loans Amortized Cost Basis | 0 | 0 | 0 | |||
Total Loans and Leases | 20 | 20 | 22 | |||
Total consumer loans | Consumer lines of credit | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 31 | 31 | 74 | |||
Fiscal year before current fiscal year | 64 | 64 | 18 | |||
Two years before current fiscal year | 16 | 16 | 2 | |||
Three years before current fiscal year | 2 | 2 | 3 | |||
Four years before current fiscal year | 3 | 3 | 4 | |||
Prior | 131 | 131 | 141 | |||
Revolving Loans Amortized Cost Basis | 1,051 | 1,051 | 1,089 | |||
Total Loans and Leases | 1,298 | 1,298 | 1,331 | |||
Current fiscal year, writeoff | 0 | |||||
Fiscal year before current fiscal year, writeoff | 0 | |||||
Two years before current fiscal year, writeoff | 0.1 | |||||
Three years before current fiscal year, writeoff | 0 | |||||
Four years before current fiscal year, writeoff | 0 | |||||
Prior, writeoff | 0.7 | |||||
Revolving Loans Amortized Cost Basis, writeoff | 0 | |||||
Total Loans and Leases, writeoff | 0.2 | $ 0.3 | 0.8 | $ 0.7 | ||
Total consumer loans | Consumer lines of credit | Current | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 31 | 31 | 74 | |||
Fiscal year before current fiscal year | 64 | 64 | 17 | |||
Two years before current fiscal year | 15 | 15 | 1 | |||
Three years before current fiscal year | 2 | 2 | 3 | |||
Four years before current fiscal year | 2 | 2 | 4 | |||
Prior | 119 | 119 | 126 | |||
Revolving Loans Amortized Cost Basis | 1,050 | 1,050 | 1,086 | |||
Total Loans and Leases | 1,283 | 1,283 | 1,311 | |||
Total consumer loans | Consumer lines of credit | Past due | ||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||
Current fiscal year | 0 | 0 | 0 | |||
Fiscal year before current fiscal year | 0 | 0 | 1 | |||
Two years before current fiscal year | 1 | 1 | 1 | |||
Three years before current fiscal year | 0 | 0 | 0 | |||
Four years before current fiscal year | 1 | 1 | 0 | |||
Prior | 12 | 12 | 15 | |||
Revolving Loans Amortized Cost Basis | 1 | 1 | 3 | |||
Total Loans and Leases | $ 15 | $ 15 | $ 20 | |||
[1]Amount represents loans for which we have elected the fair value option. See Note 19. |
LOANS AND LEASES - Age Analysis
LOANS AND LEASES - Age Analysis of Past Due Loans (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | [1] | $ 32,151 | $ 30,255 |
90 Days Past Due and Still Accruing | 9 | 12 | |
Non-accrual loans | 113 | 113 | |
Non-accrual with No ACL | 29 | 26 | |
30-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 80 | 91 | |
Past due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 202 | 216 | |
Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 31,949 | 30,039 | |
Total commercial loans and leases | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 20,146 | 19,290 | |
90 Days Past Due and Still Accruing | 0 | 1 | |
Non-accrual loans | 89 | 84 | |
Non-accrual with No ACL | 29 | 26 | |
Total commercial loans and leases | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 11,962 | 11,526 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non-accrual loans | 44 | 39 | |
Non-accrual with No ACL | 20 | 15 | |
Total commercial loans and leases | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 7,462 | 7,131 | |
90 Days Past Due and Still Accruing | 0 | 1 | |
Non-accrual loans | 44 | 44 | |
Non-accrual with No ACL | 9 | 11 | |
Total commercial loans and leases | Commercial leases | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 562 | 519 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non-accrual loans | 1 | 1 | |
Non-accrual with No ACL | 0 | 0 | |
Total commercial loans and leases | Other | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 160 | 114 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non-accrual loans | 0 | 0 | |
Non-accrual with No ACL | 0 | 0 | |
Total commercial loans and leases | 30-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 23 | 26 | |
Total commercial loans and leases | 30-89 Days Past Due | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 15 | 13 | |
Total commercial loans and leases | 30-89 Days Past Due | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 7 | 9 | |
Total commercial loans and leases | 30-89 Days Past Due | Commercial leases | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 0 | 3 | |
Total commercial loans and leases | 30-89 Days Past Due | Other | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 1 | 1 | |
Total commercial loans and leases | Past due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 112 | 111 | |
Total commercial loans and leases | Past due | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 59 | 52 | |
Total commercial loans and leases | Past due | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 51 | 54 | |
Total commercial loans and leases | Past due | Commercial leases | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 1 | 4 | |
Total commercial loans and leases | Past due | Other | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 1 | 1 | |
Total commercial loans and leases | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 20,034 | 19,179 | |
Total commercial loans and leases | Current | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 11,903 | 11,474 | |
Total commercial loans and leases | Current | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 7,411 | 7,077 | |
Total commercial loans and leases | Current | Commercial leases | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 561 | 515 | |
Total commercial loans and leases | Current | Other | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 159 | 113 | |
Total consumer loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 12,005 | 10,965 | |
90 Days Past Due and Still Accruing | 9 | 11 | |
Non-accrual loans | 24 | 29 | |
Non-accrual with No ACL | 0 | 0 | |
Total consumer loans | Direct installment | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 2,754 | 2,784 | |
90 Days Past Due and Still Accruing | 1 | 1 | |
Non-accrual loans | 6 | 7 | |
Non-accrual with No ACL | 0 | 0 | |
Total consumer loans | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 6,434 | 5,297 | |
90 Days Past Due and Still Accruing | 4 | 6 | |
Non-accrual loans | 10 | 14 | |
Non-accrual with No ACL | 0 | 0 | |
Total consumer loans | Indirect installment | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 1,519 | 1,553 | |
90 Days Past Due and Still Accruing | 2 | 1 | |
Non-accrual loans | 2 | 1 | |
Non-accrual with No ACL | 0 | 0 | |
Total consumer loans | Consumer lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 1,298 | 1,331 | |
90 Days Past Due and Still Accruing | 2 | 3 | |
Non-accrual loans | 6 | 7 | |
Non-accrual with No ACL | 0 | 0 | |
Total consumer loans | 30-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 57 | 65 | |
Total consumer loans | 30-89 Days Past Due | Direct installment | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 5 | 7 | |
Total consumer loans | 30-89 Days Past Due | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 29 | 28 | |
Total consumer loans | 30-89 Days Past Due | Indirect installment | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 16 | 20 | |
Total consumer loans | 30-89 Days Past Due | Consumer lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 7 | 10 | |
Total consumer loans | Past due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 90 | 105 | |
Total consumer loans | Past due | Direct installment | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 12 | 15 | |
Total consumer loans | Past due | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 43 | 48 | |
Total consumer loans | Past due | Indirect installment | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 20 | 22 | |
Total consumer loans | Past due | Consumer lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 15 | 20 | |
Total consumer loans | Current | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 11,915 | 10,860 | |
Total consumer loans | Current | Direct installment | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 2,742 | 2,769 | |
Total consumer loans | Current | Residential mortgages | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 6,391 | 5,249 | |
Total consumer loans | Current | Indirect installment | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | 1,499 | 1,531 | |
Total consumer loans | Current | Consumer lines of credit | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans and Leases | $ 1,283 | $ 1,311 | |
[1]Amount represents loans for which we have elected the fair value option. See Note 19. |
LOANS AND LEASES - Non-Performi
LOANS AND LEASES - Non-Performing Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 113 | $ 113 |
Non-Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 113 | 113 |
Total non-performing loans and leases | 113 | 113 |
Other real estate owned | 3 | 6 |
Total non-performing assets | $ 116 | $ 119 |
Non-performing loans and leases / total loans and leases | 0.35% | 0.37% |
Non-performing assets plus 90 days or more past due / total loans and leases plus OREO | 0.39% | 0.44% |
Past due | 90 days | 90 days |
LOANS AND LEASES - Loan Modific
LOANS AND LEASES - Loan Modifications (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 4.2 | $ 22.6 |
Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | 3.2 | 19.2 |
Term Extension and Rate Reduction | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | 0.3 | 2.1 |
Other | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | 0.7 | 1.3 |
Commercial real estate | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 0.8 | $ 12.3 |
% of Total Class of Financing Receivable | 0.01% | 0.10% |
Term increase from modification | 46 months | 24 months |
Commercial real estate | Other | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 0.2 | $ 0.5 |
% of Total Class of Financing Receivable | 0% | 0% |
Commercial and industrial | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 0.7 | $ 3 |
% of Total Class of Financing Receivable | 0.01% | 0.04% |
Term increase from modification | 25 months | 16 months |
Commercial and industrial | Term Extension and Rate Reduction | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 0.1 | $ 0.3 |
% of Total Class of Financing Receivable | 0% | 0% |
Term reduction from modification | 4.62% | |
Direct installment | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 0.4 | $ 0.8 |
% of Total Class of Financing Receivable | 0.01% | 0.03% |
Term increase from modification | 74 months | 99 months |
Direct installment | Term Extension and Rate Reduction | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 0.1 | $ 0.4 |
% of Total Class of Financing Receivable | 0% | 0.01% |
Term increase from modification | 330 months | |
Direct installment | Other | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 0.1 | $ 0.1 |
% of Total Class of Financing Receivable | 0% | 0% |
Residential mortgages | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 1.1 | $ 2.7 |
% of Total Class of Financing Receivable | 0.02% | 0.04% |
Term increase from modification | 42 months | 105 months |
Residential mortgages | Term Extension and Rate Reduction | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 0.1 | $ 0.8 |
% of Total Class of Financing Receivable | 0% | 0.01% |
Term reduction from modification | 2.67% | |
Residential mortgages | Other | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 0.1 | |
% of Total Class of Financing Receivable | 0% | |
Consumer lines of credit | Term Extension | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 0.2 | $ 0.4 |
% of Total Class of Financing Receivable | 0.02% | 0.03% |
Term average from modification | 243 months | |
Consumer lines of credit | Term Extension and Rate Reduction | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 0.6 | |
% of Total Class of Financing Receivable | 0.05% | |
Term reduction from modification | 3.21% | |
Consumer lines of credit | Other | ||
Financing Receivable, Modified [Line Items] | ||
Amortized Cost Basis | $ 0.4 | $ 0.6 |
% of Total Class of Financing Receivable | 0.03% | 0.05% |
LOANS AND LEASES - Loan Modif_2
LOANS AND LEASES - Loan Modifications, Subsequently Defaulted (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | $ 1 | $ 4 | $ 4.2 | $ 4 |
Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.7 | 2.7 | ||
Term Extension and Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.1 | 0.6 | ||
Other | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.2 | 0.9 | ||
Total commercial loans and leases | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.8 | 3 | 3.6 | 3 |
Total commercial loans and leases | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.5 | 2.4 | ||
Total commercial loans and leases | Term Extension and Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.1 | 0.3 | ||
Total commercial loans and leases | Other | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.2 | 0.9 | ||
Total commercial loans and leases | Commercial real estate | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.2 | 3 | 1.3 | 3 |
Total commercial loans and leases | Commercial real estate | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0 | 0.4 | ||
Total commercial loans and leases | Commercial real estate | Term Extension and Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0 | 0 | ||
Total commercial loans and leases | Commercial real estate | Other | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.2 | 0.9 | ||
Total commercial loans and leases | Commercial and industrial | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.6 | 0 | 2.3 | 0 |
Total commercial loans and leases | Commercial and industrial | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.5 | 2 | ||
Total commercial loans and leases | Commercial and industrial | Term Extension and Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.1 | 0.3 | ||
Total commercial loans and leases | Commercial and industrial | Other | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0 | 0 | ||
Total consumer loans | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.2 | 1 | 0.6 | 1 |
Total consumer loans | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.2 | 0.3 | ||
Total consumer loans | Term Extension and Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0 | 0.3 | ||
Total consumer loans | Other | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0 | 0 | ||
Total consumer loans | Direct installment | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.1 | 0 | 0.1 | 0 |
Total consumer loans | Direct installment | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.1 | 0.1 | ||
Total consumer loans | Direct installment | Term Extension and Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0 | 0 | ||
Total consumer loans | Direct installment | Other | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0 | 0 | ||
Total consumer loans | Residential mortgages | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.1 | $ 1 | 0.4 | $ 1 |
Total consumer loans | Residential mortgages | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.1 | 0.1 | ||
Total consumer loans | Residential mortgages | Term Extension and Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0 | 0.3 | ||
Total consumer loans | Residential mortgages | Other | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | $ 0 | 0 | ||
Total consumer loans | Consumer lines of credit | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.1 | |||
Total consumer loans | Consumer lines of credit | Term Extension | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0.1 | |||
Total consumer loans | Consumer lines of credit | Term Extension and Rate Reduction | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | 0 | |||
Total consumer loans | Consumer lines of credit | Other | ||||
Financing Receivable, Modified [Line Items] | ||||
Total loans that subsequently defaulted | $ 0 |
LOANS AND LEASES - Loan Modif_3
LOANS AND LEASES - Loan Modifications, Aging Analysis (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Current | |
Financing Receivable, Modified [Line Items] | |
Total | $ 21.5 |
30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 1 |
90+ Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 0.1 |
Total commercial loans and leases | Current | |
Financing Receivable, Modified [Line Items] | |
Total | 16.1 |
Total commercial loans and leases | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Total commercial loans and leases | 90+ Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Total commercial loans and leases | Commercial real estate | Current | |
Financing Receivable, Modified [Line Items] | |
Total | 12.9 |
Total commercial loans and leases | Commercial real estate | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Total commercial loans and leases | Commercial real estate | 90+ Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Total commercial loans and leases | Commercial and industrial | Current | |
Financing Receivable, Modified [Line Items] | |
Total | 3.2 |
Total commercial loans and leases | Commercial and industrial | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Total commercial loans and leases | Commercial and industrial | 90+ Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Total consumer loans | Current | |
Financing Receivable, Modified [Line Items] | |
Total | 5.4 |
Total consumer loans | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 1 |
Total consumer loans | 90+ Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 0.1 |
Total consumer loans | Direct installment | Current | |
Financing Receivable, Modified [Line Items] | |
Total | 1.2 |
Total consumer loans | Direct installment | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 0.2 |
Total consumer loans | Direct installment | 90+ Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Total consumer loans | Residential mortgages | Current | |
Financing Receivable, Modified [Line Items] | |
Total | 2.6 |
Total consumer loans | Residential mortgages | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 0.8 |
Total consumer loans | Residential mortgages | 90+ Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 0.1 |
Total consumer loans | Consumer lines of credit | Current | |
Financing Receivable, Modified [Line Items] | |
Total | 1.6 |
Total consumer loans | Consumer lines of credit | 30-89 Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | 0 |
Total consumer loans | Consumer lines of credit | 90+ Days Past Due | |
Financing Receivable, Modified [Line Items] | |
Total | $ 0 |
LOANS AND LEASES - Troubled Deb
LOANS AND LEASES - Troubled Debt Restructurings (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) contract | Sep. 30, 2022 USD ($) contract | |
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | contract | 33 | 103 |
Pre-Modification Outstanding Recorded Investment | $ 3 | $ 13 |
Post- Modification Outstanding Recorded Investment | $ 3 | $ 12 |
Total commercial loans and leases | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | contract | 5 | 24 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 6 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 5 |
Total commercial loans and leases | Commercial real estate | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | contract | 2 | 14 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 5 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 4 |
Total commercial loans and leases | Commercial and industrial | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | contract | 3 | 10 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 1 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 1 |
Total consumer loans | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | contract | 28 | 79 |
Pre-Modification Outstanding Recorded Investment | $ 3 | $ 7 |
Post- Modification Outstanding Recorded Investment | $ 3 | $ 7 |
Total consumer loans | Direct installment | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | contract | 8 | 33 |
Pre-Modification Outstanding Recorded Investment | $ 1 | $ 1 |
Post- Modification Outstanding Recorded Investment | $ 1 | $ 1 |
Total consumer loans | Residential mortgages | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | contract | 14 | 34 |
Pre-Modification Outstanding Recorded Investment | $ 2 | $ 5 |
Post- Modification Outstanding Recorded Investment | $ 2 | $ 5 |
Total consumer loans | Consumer lines of credit | ||
Financing Receivable, Modified [Line Items] | ||
Number of Contracts | contract | 6 | 12 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 1 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 1 |
LOANS AND LEASES - Troubled D_2
LOANS AND LEASES - Troubled Debt Restructurings, Payment Default (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) contract | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) contract | |
Financing Receivable, Modified [Line Items] | ||||
Number of Contracts | contract | 16 | 24 | ||
Recorded Investment | $ | $ 1 | $ 4 | $ 4.2 | $ 4 |
Total commercial loans and leases | ||||
Financing Receivable, Modified [Line Items] | ||||
Number of Contracts | contract | 8 | 11 | ||
Recorded Investment | $ | 0.8 | $ 3 | 3.6 | $ 3 |
Total commercial loans and leases | Commercial real estate | ||||
Financing Receivable, Modified [Line Items] | ||||
Number of Contracts | contract | 7 | 10 | ||
Recorded Investment | $ | 0.2 | $ 3 | 1.3 | $ 3 |
Total commercial loans and leases | Commercial and industrial | ||||
Financing Receivable, Modified [Line Items] | ||||
Number of Contracts | contract | 1 | 1 | ||
Recorded Investment | $ | 0.6 | $ 0 | 2.3 | $ 0 |
Total consumer loans | ||||
Financing Receivable, Modified [Line Items] | ||||
Number of Contracts | contract | 8 | 13 | ||
Recorded Investment | $ | 0.2 | $ 1 | 0.6 | $ 1 |
Total consumer loans | Direct installment | ||||
Financing Receivable, Modified [Line Items] | ||||
Number of Contracts | contract | 3 | 5 | ||
Recorded Investment | $ | 0.1 | $ 0 | 0.1 | $ 0 |
Total consumer loans | Residential mortgages | ||||
Financing Receivable, Modified [Line Items] | ||||
Number of Contracts | contract | 5 | 8 | ||
Recorded Investment | $ | $ 0.1 | $ 1 | $ 0.4 | $ 1 |
ALLOWANCE FOR CREDIT LOSSES O_3
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES - Changes in Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | $ 402 | |||
Charge- Offs | (69.6) | |||
Provision for Credit Losses | $ 25.9 | $ 11.2 | 58.5 | $ 35.6 |
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 401 | 401 | ||
Unfunded loan commitment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 21 | 18.2 | 21.4 | 19.1 |
Charge- Offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net (Charge- Offs) Recoveries | 0 | 0 | 0 | 0 |
Provision for Credit Losses | 0.3 | 1.1 | (0.1) | 0.2 |
Allowance for PCD Loans and Leases at Acquisition | 0 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 21.3 | 19.3 | 21.3 | 19.3 |
Total commercial loans and leases | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 287.5 | 270.1 | 281.7 | 261.2 |
Charge- Offs | (38.7) | (3) | (60.7) | (10.4) |
Recoveries | 2.5 | 1.7 | 6.9 | 8.3 |
Net (Charge- Offs) Recoveries | (36.2) | (1.3) | (53.8) | (2.1) |
Provision for Credit Losses | 21.6 | 1.1 | 45 | 3 |
Allowance for PCD Loans and Leases at Acquisition | 7.8 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 272.9 | 269.9 | 272.9 | 269.9 |
Total commercial loans and leases | Commercial real estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 154.2 | 157.9 | 162.1 | 156.5 |
Charge- Offs | (0.6) | (1.3) | (8.9) | (2.9) |
Recoveries | 0.9 | 0.5 | 3.2 | 2.6 |
Net (Charge- Offs) Recoveries | 0.3 | (0.8) | (5.7) | (0.3) |
Provision for Credit Losses | 0.5 | (1.8) | (1.4) | (5.3) |
Allowance for PCD Loans and Leases at Acquisition | 4.4 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 155 | 155.3 | 155 | 155.3 |
Total commercial loans and leases | Commercial and industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 114.3 | 94.3 | 102.1 | 87.4 |
Charge- Offs | (37.2) | (0.8) | (48.5) | (5.1) |
Recoveries | 1.4 | 0.9 | 3 | 4.9 |
Net (Charge- Offs) Recoveries | (35.8) | 0.1 | (45.5) | (0.2) |
Provision for Credit Losses | 17.1 | 1.8 | 39 | 5.6 |
Allowance for PCD Loans and Leases at Acquisition | 3.4 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 95.6 | 96.2 | 95.6 | 96.2 |
Total commercial loans and leases | Commercial leases | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 15.2 | 13.7 | 13.5 | 14.7 |
Charge- Offs | 0 | 0 | 0 | (0.1) |
Recoveries | 0 | 0 | 0 | 0 |
Net (Charge- Offs) Recoveries | 0 | 0 | 0 | (0.1) |
Provision for Credit Losses | 2.9 | 0.5 | 4.6 | (0.4) |
Allowance for PCD Loans and Leases at Acquisition | 0 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 18.1 | 14.2 | 18.1 | 14.2 |
Total commercial loans and leases | Other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 3.8 | 4.2 | 4 | 2.6 |
Charge- Offs | (0.9) | (0.9) | (3.3) | (2.3) |
Recoveries | 0.2 | 0.3 | 0.7 | 0.8 |
Net (Charge- Offs) Recoveries | (0.7) | (0.6) | (2.6) | (1.5) |
Provision for Credit Losses | 1.1 | 0.6 | 2.8 | 3.1 |
Allowance for PCD Loans and Leases at Acquisition | 0 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 4.2 | 4.2 | 4.2 | 4.2 |
Total commercial loans and leases | Unfunded loan commitment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Provision for Credit Losses | 0.3 | 1.1 | (0.1) | 0.2 |
Total consumer loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 125.2 | 107.9 | 120 | 83.1 |
Charge- Offs | (2.5) | (2.7) | (8.9) | (5.8) |
Recoveries | 1 | 1.2 | 3.1 | 3.6 |
Net (Charge- Offs) Recoveries | (1.5) | (1.5) | (5.8) | (2.2) |
Provision for Credit Losses | 4 | 9 | 13.5 | 32.3 |
Allowance for PCD Loans and Leases at Acquisition | 2.2 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 127.7 | 115.4 | 127.7 | 115.4 |
Total consumer loans | Direct installment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 35.6 | 34.2 | 35.9 | 26.4 |
Charge- Offs | (0.1) | (0.2) | (0.5) | (0.4) |
Recoveries | 0.2 | 0.1 | 0.5 | 0.5 |
Net (Charge- Offs) Recoveries | 0.1 | (0.1) | 0 | 0.1 |
Provision for Credit Losses | (1) | 2 | (1.2) | 9.1 |
Allowance for PCD Loans and Leases at Acquisition | 0.5 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 34.7 | 36.1 | 34.7 | 36.1 |
Total consumer loans | Residential mortgages | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 63.4 | 47.2 | 55.5 | 33.1 |
Charge- Offs | (0.1) | (0.3) | (0.7) | (0.6) |
Recoveries | 0.1 | 0.2 | 0.3 | 0.5 |
Net (Charge- Offs) Recoveries | 0 | (0.1) | (0.4) | (0.1) |
Provision for Credit Losses | 4 | 4.3 | 12.3 | 17.1 |
Allowance for PCD Loans and Leases at Acquisition | 1.3 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 67.4 | 51.4 | 67.4 | 51.4 |
Total consumer loans | Indirect installment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 16.6 | 16 | 17.3 | 13.5 |
Charge- Offs | (2.1) | (1.9) | (6.9) | (4.1) |
Recoveries | 0.5 | 0.6 | 1.6 | 1.7 |
Net (Charge- Offs) Recoveries | (1.6) | (1.3) | (5.3) | (2.4) |
Provision for Credit Losses | 1.1 | 2.4 | 4.1 | 6 |
Allowance for PCD Loans and Leases at Acquisition | 0 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 16.1 | 17.1 | 16.1 | 17.1 |
Total consumer loans | Consumer lines of credit | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 9.6 | 10.5 | 11.3 | 10.1 |
Charge- Offs | (0.2) | (0.3) | (0.8) | (0.7) |
Recoveries | 0.2 | 0.3 | 0.7 | 0.9 |
Net (Charge- Offs) Recoveries | 0 | 0 | (0.1) | 0.2 |
Provision for Credit Losses | (0.1) | 0.3 | (1.7) | 0.1 |
Allowance for PCD Loans and Leases at Acquisition | 0.4 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 9.5 | 10.8 | 9.5 | 10.8 |
Allowance for credit losses on loans and leases | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 412.7 | 378 | 401.7 | 344.3 |
Charge- Offs | (41.2) | (5.7) | (69.6) | (16.2) |
Recoveries | 3.5 | 2.9 | 10 | 11.9 |
Net (Charge- Offs) Recoveries | (37.7) | (2.8) | (59.6) | (4.3) |
Provision for Credit Losses | 25.6 | 10.1 | 58.5 | 35.3 |
Allowance for PCD Loans and Leases at Acquisition | 10 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 400.6 | 385.3 | 400.6 | 385.3 |
Allowance for credit losses on loans and leases and allowance for unfunded loan commitments | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 433.7 | 396.2 | 423.1 | 363.4 |
Charge- Offs | (41.2) | (5.7) | (69.6) | (16.2) |
Recoveries | 3.5 | 2.9 | 10 | 11.9 |
Net (Charge- Offs) Recoveries | (37.7) | (2.8) | (59.6) | (4.3) |
Provision for Credit Losses | 25.9 | 11.2 | 58.4 | 35.5 |
Allowance for PCD Loans and Leases at Acquisition | 10 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | $ 421.9 | $ 404.6 | $ 421.9 | $ 404.6 |
ALLOWANCE FOR CREDIT LOSSES O_4
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Jan. 22, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Percentage of increase (decline), housing price index | 0.50% | 0.50% | (3.70%) | ||||||
Percentage of decline, commercial real estate price index | 3.90% | 3.90% | 0.90% | ||||||
Percentage of decline, S&P volatility in next fiscal year | 35% | 35% | 41% | ||||||
Percentage of decline, S&P volatility in next second year | 14.50% | 14.50% | 8.10% | ||||||
Allowance for credit loss | $ 401 | $ 401 | $ 402 | ||||||
Provision for credit losses | 25.9 | $ 11.2 | 58.5 | $ 35.6 | |||||
Non-Performing | Commercial and industrial | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Financing receivable, allowance for credit loss, period increase (decrease) | 18.8 | ||||||||
Financing receivable, financial instrument performance status change, downgrade amount | $ 31.9 | ||||||||
Howard | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Financing receivable, non-purchased credit deterioration loans, allowance for credit loss at acquisition date, provision | $ 19.1 | ||||||||
Allowance for credit losses on loans and leases | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Allowance for credit loss | $ 400.6 | 385.3 | 400.6 | 385.3 | $ 412.7 | $ 401.7 | $ 378 | $ 344.3 | |
Financing receivable, allowance for credit loss, period increase (decrease) | $ (1.1) | ||||||||
Financing receivable, allowance for credit loss, period decrease, percentage | (0.30%) | ||||||||
Financing receivable, allowance for credit loss, ratio | 1.25% | 1.25% | 1.33% | ||||||
Provision for credit losses | $ 25.6 | $ 10.1 | $ 58.5 | $ 35.3 | |||||
Financing receivable, allowance for credit loss, net charge-offs (recovery), percentage | 0.47% | 0.04% | 0.26% | 0.02% | |||||
Financing receivable, allowance for credit loss, net charge-offs (recovery) | $ 37.7 | $ 2.8 | $ 59.6 | $ 4.3 | |||||
Allowance for credit losses on loans and leases | Howard | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Financing receivable, non-purchased credit deterioration loans, allowance for credit loss at acquisition date, provision | $ 19.1 |
LOAN SERVICING - Activity in MS
LOAN SERVICING - Activity in MSR (Details) - Mortgage Servicing Rights - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Servicing Assets at Fair Value [Line Items] | |||||
Mortgage loans sold with servicing retained | $ 5,638,000,000 | $ 5,638,000,000 | $ 5,242,000,000 | ||
Mortgage loans sold with servicing retained | 322,000,000 | $ 204,000,000 | 781,000,000 | $ 870,000,000 | |
Pre-tax net gains (losses) resulting from above loan sales | 1,000,000 | (2,000,000) | 1,000,000 | (9,000,000) | |
Mortgage servicing fees | 3,000,000 | 3,000,000 | 10,000,000 | 9,000,000 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||||
Balance at beginning of period | 55,700,000 | 50,700,000 | 52,800,000 | 44,400,000 | |
Additions | 3,800,000 | 2,400,000 | 9,000,000 | 10,500,000 | |
Payoffs and curtailments | (1,300,000) | (800,000) | (1,600,000) | (3,800,000) | |
Impairment (charge) / recovery | 0 | 0 | 0 | 2,500,000 | |
Amortization / other | 200,000 | (600,000) | (1,800,000) | (1,900,000) | |
Balance at end of period | 58,400,000 | 51,700,000 | 58,400,000 | 51,700,000 | |
Fair value, start | 72,100,000 | 64,100,000 | 68,600,000 | 46,000,000 | |
Fair value, end | 75,100,000 | $ 69,600,000 | 75,100,000 | $ 69,600,000 | |
Valuation allowance for servicing rights | $ 0 | $ 0 | $ 0 |
LOAN SERVICING - Sensitivity of
LOAN SERVICING - Sensitivity of Fair Value to Changes in Key Assumptions (Details) - Mortgage Servicing Rights - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Weighted average life (months) | 97 months | 96 months |
Constant prepayment rate (annualized) | 7.20% | 7.30% |
Discount rate | 10.70% | 10% |
Sensitivity analysis of fair value, change in interest rates, plus 2.00% | $ 3 | $ 9 |
Sensitivity analysis of fair value, change in interest rates, plus 1.00% | 2 | 4 |
Sensitivity analysis of fair value, change in interest rates, plus 0.50% | 1 | 2 |
Sensitivity analysis of fair value, change in interest rates, plus 0.25% | 1 | 1 |
Sensitivity analysis of fair value, change in interest rates, minus 0.25% | (1) | (1) |
Sensitivity analysis of fair value, change in interest rates, minus 0.50% | (2) | (3) |
Sensitivity analysis of fair value, change in interest rates, minus 1.00% | (6) | (6) |
Sensitivity analysis of fair value, change in interest rates, minus 2.00% | $ (14) | $ (15) |
LEASES - Additional Information
LEASES - Additional Information (Details) $ in Millions | Sep. 30, 2023 USD ($) option |
Lessee, Lease, Description [Line Items] | |
Operating lease, right-of-use asset | $ 158.6 |
Operating lease, liability | 178.9 |
Finance lease right-of-use asset | 31.9 |
Finance lease liability | 32.9 |
Lessee, operating lease, right-of-use asset, lease not yet commenced | 45.4 |
Lessee, operating lease, lease not yet commenced, liability | $ 60 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, number of options to renew | option | 1 |
Lessee, finance lease, number of options to renew | option | 1 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, lease not yet commenced, term of contract | 21 years |
LEASES - Lease Expense (Details
LEASES - Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 9 | $ 8 | $ 25 | $ 24 |
Variable lease cost | 1 | 1 | 3 | 3 |
Finance lease cost | 1 | 0 | 3 | 0 |
Total lease cost | $ 11 | $ 9 | $ 31 | $ 27 |
LEASES - Other Information (Det
LEASES - Other Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 7 | $ 7 |
Operating cash flows from finance leases | 0 | 0 |
Operating lease, right-of-use assets obtained in exchange for lease obligations | 31 | 0 |
Finance lease, right-of-use assets obtained in exchange for lease obligations | $ 0 | $ 0 |
Operating lease, weighted average remaining lease term (in years) | 10 years 4 months 9 days | 9 years 6 months 3 days |
Finance lease, weighted average remaining lease term (in years) | 19 years 9 months | 21 years 2 months 23 days |
Operating lease, weighted average discount rate, percent | 3.20% | 2.40% |
Finance lease, weighted average discount rate, percent | 3.20% | 2.60% |
LEASES - Maturities (Details)
LEASES - Maturities (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Operating Leases | |
2023 | $ 9 |
2024 | 29 |
2025 | 24 |
2026 | 21 |
2027 | 18 |
Later years | 117 |
Total lease payments | 218 |
Less: imputed interest | (39) |
Present value of lease liabilities | 178.9 |
Finance Leases | |
2023 | 1 |
2024 | 2 |
2025 | 2 |
2026 | 2 |
2027 | 2 |
Later years | 36 |
Total lease payments | 45 |
Less: imputed interest | (12) |
Present value of lease liabilities | 32.9 |
Total Leases | |
2023 | 10 |
2024 | 31 |
2025 | 26 |
2026 | 23 |
2027 | 20 |
Later years | 153 |
Total lease payments | 263 |
Less: imputed interest | (51) |
Present value of lease liabilities | $ 212 |
VARIABLE INTEREST ENTITIES - As
VARIABLE INTEREST ENTITIES - Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Variable Interest Entity [Line Items] | |||
Total Assets | $ 45,496 | $ 43,725 | $ 42,590 |
Total Liabilities | 39,602 | 38,072 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 166 | 157 | |
Total Liabilities | 119 | 118 | |
Maximum Exposure to Loss | 163 | 156 | |
Trust preferred securities | Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 3 | 1 | |
Total Liabilities | 73 | 72 | |
Maximum Exposure to Loss | 0 | 0 | |
Affordable housing tax credit partnerships | Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 122 | 123 | |
Total Liabilities | 40 | 37 | |
Maximum Exposure to Loss | 122 | 123 | |
Other investments | Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 41 | 33 | |
Total Liabilities | 6 | 9 | |
Maximum Exposure to Loss | $ 41 | $ 33 |
VARIABLE INTEREST ENTITIES - Tr
VARIABLE INTEREST ENTITIES - Trust-Preferred Securities (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Trust Preferred Securities | Maximum | |
Variable Interest Entity [Line Items] | |
Deferral period for payment of interest | 5 years |
VARIABLE INTEREST ENTITIES - Af
VARIABLE INTEREST ENTITIES - Affordable Housing Tax Credit Investments And Related Unfunded Commitments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
LIHTC investments included in other assets | $ 82 | $ 86 |
Unfunded LIHTC commitments | $ 40 | $ 37 |
VARIABLE INTEREST ENTITIES - In
VARIABLE INTEREST ENTITIES - Income Statement Effect (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Provision for income taxes: | ||||
Amortization of LIHTC investments under proportional method | $ 4 | $ 4 | $ 12 | $ 11 |
Low-income housing tax credits | (4) | (3) | (12) | (11) |
Other tax benefits related to tax credit investments | (1) | (1) | (2) | (2) |
Total impact on provision for income taxes | $ (1) | $ 0 | $ (2) | $ (2) |
BORROWINGS - Summary of Short-T
BORROWINGS - Summary of Short-Term Borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Securities sold under repurchase agreements | $ 259 | $ 317 |
Federal Home Loan Bank advances | 1,665 | 930 |
Federal funds purchased | 30 | 0 |
Subordinated notes | 112 | 125 |
Total short-term borrowings | $ 2,066 | $ 1,372 |
BORROWINGS - Additional Informa
BORROWINGS - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 USD ($) trust | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) trust | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 09, 2022 USD ($) | Jan. 22, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Short-term advances | $ 600,000,000 | $ 600,000,000 | $ 930,000,000 | |||||
Short-term advances, percentage bearing fixed interest rate | 36% | 36% | 100% | |||||
Aggregate principal amount | $ 620,000,000 | $ 620,000,000 | ||||||
Proceeds from debt, net of issuance costs | 613,000,000 | |||||||
Repayments of debt | 351,000,000 | $ 223,000,000 | ||||||
Other subordinated debt | 267,000,000 | 267,000,000 | $ 303,000,000 | |||||
Subordinated notes | 80,000,000 | 80,000,000 | 70,000,000 | |||||
Long-term borrowings | $ 1,968,000,000 | $ 1,968,000,000 | 1,093,000,000 | |||||
Number of unconsolidated subsidiary trusts | trust | 4 | 4 | ||||||
SOFR | Trust Preferred Securities | ||||||||
Debt Instrument [Line Items] | ||||||||
Tenor spread adjustment | 0.0026 | |||||||
Howard | ||||||||
Debt Instrument [Line Items] | ||||||||
Other subordinated debt | 25,000,000 | |||||||
Subordinated notes | $ 5,000,000 | |||||||
Union | ||||||||
Debt Instrument [Line Items] | ||||||||
Other subordinated debt | $ 31,000,000 | |||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 350,000,000 | $ 350,000,000 | ||||||
Proceeds from debt, net of issuance costs | 347,000,000 | |||||||
Other Subordinated Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | 270,000,000 | 270,000,000 | ||||||
Proceeds from debt, net of issuance costs | 266,000,000 | |||||||
Repayments of subordinated debt | 13,600,000 | |||||||
Other Subordinated Debt | Howard | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of subordinated debt | 1,000,000 | |||||||
Other Subordinated Debt | Union | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from subordinated debt | $ 6,000,000 | |||||||
Repayments of subordinated debt | $ 15,000,000 | |||||||
FHLB | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit available with FHLB | 10,600,000,000 | 10,600,000,000 | ||||||
Credit with FHLB utilized | $ 2,900,000,000 | $ 2,900,000,000 | ||||||
Long-term borrowings | $ 0 | 0 | 0 | |||||
FHLB | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective interest rates | 4.23% | 4.23% | ||||||
FHLB | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective interest rates | 4.88% | 4.88% | ||||||
FHLB | Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit with FHLB utilized | $ 700,000,000 | $ 700,000,000 | ||||||
Other Wholesale Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining borrowing capacity | 8,600,000,000 | 8,600,000,000 | ||||||
5.150% Senior Notes due August 25, 2025 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | ||||
Interest rate | 5.15% | 5.15% | 5.15% | 5.15% | ||||
Proceeds from debt, net of issuance costs | $ 347,400,000 | $ 347,000,000 | ||||||
2.200% Senior Notes due February 2023 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 2.20% | 2.20% | ||||||
Repayments of debt | $ 300,000,000 | |||||||
FHLB | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term advances, overnight maturities, percentage | 15.90% | 15.90% | ||||||
Short-term advances | $ 0 |
BORROWINGS - Summary of Long-Te
BORROWINGS - Summary of Long-Term Borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Federal Home Loan Bank advances | $ 1,200 | $ 0 |
Senior notes | 348 | 648 |
Subordinated notes | 80 | 70 |
Junior subordinated debt | 73 | 72 |
Other subordinated debt | 267 | 303 |
Total long-term borrowings | $ 1,968 | $ 1,093 |
BORROWINGS - Schedule of Subord
BORROWINGS - Schedule of Subordinated Debt (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | ||
Aggregate Principal Amount Issued | $ 620 | |
Net Proceeds | 613 | |
Carrying Value | 615 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Aggregate Principal Amount Issued | 350 | |
Net Proceeds | 347 | |
Carrying Value | 348 | |
Other Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Aggregate Principal Amount Issued | 270 | |
Net Proceeds | 266 | |
Carrying Value | $ 267 | |
5.150% Senior Notes due August 25, 2025 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.15% | 5.15% |
Aggregate Principal Amount Issued | $ 350 | $ 350 |
Net Proceeds | $ 347.4 | 347 |
Carrying Value | $ 348 | |
4.950% Fixed-To-Floating Rate Subordinated Notes due 2029 | Other Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.95% | |
Aggregate Principal Amount Issued | $ 120 | |
Net Proceeds | 118 | |
Carrying Value | $ 119 | |
4.950% Fixed-To-Floating Rate Subordinated Notes due 2029 | Other Subordinated Debt | SOFR | ||
Debt Instrument [Line Items] | ||
Basis points, tenor spread adjustment | 0.0026 | |
Basis points, spread | 2.40% | |
4.875% Subordinated Notes due 2025 | Other Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.875% | |
Aggregate Principal Amount Issued | $ 100 | |
Net Proceeds | 98 | |
Carrying Value | $ 100 | |
6.00% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 | Other Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6% | |
Aggregate Principal Amount Issued | $ 25 | |
Net Proceeds | 26 | |
Carrying Value | $ 24 | |
6.00% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 | Other Subordinated Debt | SOFR | ||
Debt Instrument [Line Items] | ||
Basis points, tenor spread adjustment | 0.0026 | |
Basis points, spread | 3.02% | |
5.000% Fixed-To-Floating Rate Subordinated Note due May 29, 2030 | Other Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5% | |
Aggregate Principal Amount Issued | $ 25 | |
Net Proceeds | 24 | |
Carrying Value | $ 24 | |
5.000% Fixed-To-Floating Rate Subordinated Note due May 29, 2030 | Other Subordinated Debt | SOFR | ||
Debt Instrument [Line Items] | ||
Basis points, spread | 4.64% |
BORROWINGS - Schedule of Junior
BORROWINGS - Schedule of Junior Subordinated Debt Trusts (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | $ 73 | $ 72 |
Trust Preferred Securities | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | 77 | |
Common Securities | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | 3 | |
F.N.B. Statutory Trust II | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | $ 22 | |
Interest Rate | 7.32% | |
F.N.B. Statutory Trust II | SOFR | ||
Subordinated Borrowing [Line Items] | ||
Basis points | 1.65% | |
F.N.B. Statutory Trust II | Trust Preferred Securities | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | $ 22 | |
F.N.B. Statutory Trust II | Common Securities | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | 1 | |
Yadkin Valley Statutory Trust I | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | $ 23 | |
Interest Rate | 6.99% | |
Yadkin Valley Statutory Trust I | SOFR | ||
Subordinated Borrowing [Line Items] | ||
Basis points | 1.32% | |
Yadkin Valley Statutory Trust I | Trust Preferred Securities | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | $ 25 | |
Yadkin Valley Statutory Trust I | Common Securities | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | 1 | |
FNB Financial Services Capital Trust I | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | $ 23 | |
Interest Rate | 7.12% | |
FNB Financial Services Capital Trust I | SOFR | ||
Subordinated Borrowing [Line Items] | ||
Basis points | 1.46% | |
FNB Financial Services Capital Trust I | Trust Preferred Securities | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | $ 25 | |
FNB Financial Services Capital Trust I | Common Securities | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | 1 | |
Patapsco Statutory Trust I | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | $ 5 | |
Interest Rate | 7.15% | |
Patapsco Statutory Trust I | SOFR | ||
Subordinated Borrowing [Line Items] | ||
Basis points | 1.48% | |
Patapsco Statutory Trust I | Trust Preferred Securities | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | $ 5 | |
Patapsco Statutory Trust I | Common Securities | ||
Subordinated Borrowing [Line Items] | ||
Junior subordinated debt | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amounts and Gross Fair Values (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 14,235 | $ 13,718 |
Derivative asset, not offset against collateral | 140 | 89 |
Derivative liability, not offset against collateral | 6 | 7 |
Derivative asset, not subject to master netting arrangement | 5 | 7 |
Derivative liability, not subject to master netting arrangement | 463 | 404 |
Fair value, asset | 145 | 96 |
Fair value, liability | 469 | 411 |
Interest rate contracts – designated | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, not offset against collateral | 0 | 0 |
Derivative liability, not offset against collateral | 4 | 1 |
Interest rate swaps – not designated | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, not offset against collateral | 140 | 89 |
Derivative liability, not offset against collateral | 2 | 6 |
Derivative asset, not subject to master netting arrangement | 2 | 6 |
Derivative liability, not subject to master netting arrangement | 460 | 390 |
Interest rate lock commitments – not designated | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, not subject to master netting arrangement | 0 | 0 |
Derivative liability, not subject to master netting arrangement | 3 | 12 |
Forward delivery commitments – not designated | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, not subject to master netting arrangement | 3 | 1 |
Derivative liability, not subject to master netting arrangement | 0 | 2 |
Credit risk contracts – not designated | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 529.6 | |
Derivative asset, not subject to master netting arrangement | 0 | 0 |
Derivative liability, not subject to master netting arrangement | 0 | 0 |
Subject to master netting arrangements: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 7,577 | 7,513 |
Subject to master netting arrangements: | Interest rate contracts – designated | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 2,000 | 2,180 |
Subject to master netting arrangements: | Interest rate swaps – not designated | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 5,577 | 5,333 |
Not subject to master netting arrangements: | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 6,658 | 6,205 |
Not subject to master netting arrangements: | Interest rate swaps – not designated | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 5,577 | 5,333 |
Not subject to master netting arrangements: | Interest rate lock commitments – not designated | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 234 | 163 |
Not subject to master netting arrangements: | Forward delivery commitments – not designated | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 198 | 203 |
Not subject to master netting arrangements: | Credit risk contracts – not designated | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 649 | $ 506 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Amounts Reclassified from AOCI (Details) - Interest rate contracts - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivatives | $ (21,000,000) | $ (39,000,000) |
Amount of Gain (Loss) Reclassified from AOCI into Income | 0 | 0 |
Interest income (expense) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income | (16,000,000) | (8,000,000) |
Other income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Income | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Cash Flow Hedging on Income Statement (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative [Line Items] | ||||
Interest Income - Loans and Leases | $ 455,000,000 | $ 297,000,000 | $ 1,278,000,000 | $ 760,000,000 |
Interest Expense - Short-Term Borrowings | $ 23,000,000 | $ 6,000,000 | 55,000,000 | 17,000,000 |
Interest rate contracts | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) reclassified from AOCI into net income | 0 | 0 | ||
Interest rate contracts | Interest Income - Loans and Leases | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) reclassified from AOCI into net income | (33,000,000) | (1,000,000) | ||
Interest rate contracts | Interest Expense - Short-Term Borrowings | ||||
Derivative [Line Items] | ||||
Amount of gain (loss) reclassified from AOCI into net income | $ 17,000,000 | $ (7,000,000) |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
Notional amount | $ 14,235,000,000 | $ 13,718,000,000 | |
Additional amount in excess of posted collateral required in case of breached agreements | $ 0 | 100,000 | |
Interest rate contracts | |||
Derivative [Line Items] | |||
Maximum length of time hedged in interest rate cash flow hedge | 2 years 7 months 6 days | ||
Period to reclassification of cash flow hedge gain loss | 12 months | ||
Derivative loss to be reclassified within twelve months | $ 36,400,000 | ||
Derivative loss to be reclassified within twelve months, net of tax | 28,200,000 | ||
Derivative gain or losses excluded from assessment of hedge effectiveness | 0 | ||
Amount of gain (loss) reclassified from AOCI into net income | 0 | $ 0 | |
Credit risk contracts | |||
Derivative [Line Items] | |||
Notional amount | 529,600,000 | ||
Maximum exposure under credit risk agreement assuming customer default | 100,000 | 100,000 | |
Credit risk derivatives, purchased at fair value | 100,000 | 100,000 | |
Credit risk derivatives, sold at fair value | $ 100,000 | $ 100,000 | |
Credit risk contracts | Minimum | |||
Derivative [Line Items] | |||
Risk participation agreements, term | 1 day | ||
Credit risk contracts | Maximum | |||
Derivative [Line Items] | |||
Risk participation agreements, term | 18 years |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Derivative Financial Instruments on Income Statement (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative financial instrument, net | $ (1) | $ 0 |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Derivative financial instrument, net | 0 | 0 |
Forward delivery contracts | ||
Derivative [Line Items] | ||
Derivative financial instrument, net | 4 | 2 |
Credit risk contracts | ||
Derivative [Line Items] | ||
Derivative financial instrument, net | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_8
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Net Amount Presented in the Consolidated Balance Sheets | $ 140 | $ 89 |
Financial Instruments | 0 | 0 |
Cash Collateral | 140 | 88 |
Net Amount | 0 | 1 |
Interest rate swaps – not designated | ||
Derivative [Line Items] | ||
Net Amount Presented in the Consolidated Balance Sheets | 140 | 89 |
Financial Instruments | 0 | 0 |
Cash Collateral | 140 | 88 |
Net Amount | $ 0 | $ 1 |
DERIVATIVE INSTRUMENTS AND HE_9
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Net Amount Presented in the Consolidated Balance Sheets | $ 6 | $ 7 |
Financial Instruments | 0 | 0 |
Cash Collateral | 6 | 7 |
Net Amount | 0 | 0 |
Interest rate contracts – designated | ||
Derivative [Line Items] | ||
Net Amount Presented in the Consolidated Balance Sheets | 4 | 1 |
Financial Instruments | 0 | 0 |
Cash Collateral | 4 | 1 |
Net Amount | 0 | 0 |
Interest rate swaps – not designated | ||
Derivative [Line Items] | ||
Net Amount Presented in the Consolidated Balance Sheets | 2 | 6 |
Financial Instruments | 0 | 0 |
Cash Collateral | 2 | 6 |
Net Amount | $ 0 | $ 0 |
COMMITMENTS, CREDIT RISK AND _3
COMMITMENTS, CREDIT RISK AND CONTINGENCIES - Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Extended credit and standby letters of credit | $ 232 | $ 207 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Extended credit and standby letters of credit | $ 13,457 | $ 13,250 |
COMMITMENTS, CREDIT RISK AND _4
COMMITMENTS, CREDIT RISK AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Percentage of commitments to extend credit dependent upon the financial condition of the customers | 74.90% | |
Allowance for credit losses on loan commitments that are not unconditionally cancellable | $ 21.3 | $ 21.4 |
STOCK INCENTIVE PLANS - Additio
STOCK INCENTIVE PLANS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares available up to (in shares) | 7,397,956 | |
Common stock shares remaining available for awards under plan (in shares) | 5,529,405 | |
Unrecognized compensation expense | $ 13 | |
Shares, options outstanding and exercisable (in shares) | 104,223 | 167,948 |
Weighted average exercise price, options outstanding (USD per share) | $ 9.96 | $ 9.03 |
Intrinsic value of outstanding and exercisable stock options | $ 0.1 | |
Performance- Based Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 0 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period of units issued, years | 3 years | |
Restricted stock awards issued (in shares) | 1,426,146 | 1,266,821 |
Unrecognized compensation expense | $ 13 | |
Restricted Stock | Performance- Based Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards issued (in shares) | 290,764 | 297,508 |
STOCK INCENTIVE PLANS - Schedul
STOCK INCENTIVE PLANS - Schedule of Restricted Stock Units Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Units | ||
Shares, unvested units outstanding at end of period (in shares) | 3,504,777 | |
Restricted Stock | ||
Units | ||
Shares, unvested units outstanding at beginning of period (in shares) | 4,821,182 | 4,680,786 |
Shares, granted (in shares) | 1,426,146 | 1,266,821 |
Shares, acquired (in shares) | 0 | 60,300 |
Shares, net adjustment (in shares) | 172,874 | 244,258 |
Shares, vested (in shares) | (2,310,042) | (1,683,372) |
Shares, forfeited/expired/canceled (in shares) | (605,383) | (219,058) |
Shares, dividend reinvestment (in shares) | 0 | 137,976 |
Shares, unvested units outstanding at end of period (in shares) | 3,504,777 | 4,487,711 |
Weighted Average Grant Price per Share | ||
Weighted average grant price, invested units outstanding at beginning of period (USD per share) | $ 10.30 | $ 9.71 |
Weighted average grant price, granted (USD per share) | 12.71 | 13.07 |
Weighted average grant price, acquired (USD per share) | 0 | 9.41 |
Weighted average grant price, net adjusted (USD per share) | 0 | 9.34 |
Weighted average grant price, vested (USD per share) | 7.03 | 10.58 |
Weighted average grant price, forfeited/expired/canceled (USD per share) | 7.93 | 10.95 |
Weighted average grant price, dividend reinvestment (USD per share) | 0 | 11.91 |
Weighted average grant price, invested units outstanding at end of period (USD per share) | $ 12.88 | $ 10.31 |
STOCK INCENTIVE PLANS - Sched_2
STOCK INCENTIVE PLANS - Schedule of Certain Information Related to Restricted Stock Units (Details) - Restricted Stock - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 15 | $ 15 |
Tax benefit related to stock-based compensation expense | 3 | 3 |
Fair value of units vested | $ 18 | $ 21 |
STOCK INCENTIVE PLANS - Compone
STOCK INCENTIVE PLANS - Components of Restricted Stock Units (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested restricted stock units (in shares) | shares | 3,504,777 |
Unrecognized compensation expense | $ 13 |
Intrinsic value | $ 37 |
Weighted average remaining life (in years) | 1 year 9 months 25 days |
Service- Based Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested restricted stock units (in shares) | shares | 2,541,229 |
Unrecognized compensation expense | $ 13 |
Intrinsic value | $ 27 |
Weighted average remaining life (in years) | 1 year 10 months 24 days |
Performance- Based Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested restricted stock units (in shares) | shares | 963,548 |
Unrecognized compensation expense | $ 0 |
Intrinsic value | $ 10 |
Weighted average remaining life (in years) | 1 year 7 months 9 days |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Current income taxes: Federal taxes | $ 12 | $ 32 | $ 79 | $ 61 |
Current income taxes: State taxes | 3 | 2 | 8 | 7 |
Total current income taxes | 15 | 34 | 87 | 68 |
Deferred income taxes: Federal taxes | 3 | 0 | 2 | 8 |
Deferred income taxes: State taxes | 1 | 1 | 2 | 1 |
Total deferred income taxes | 4 | 1 | 4 | 9 |
Income taxes | $ 19 | $ 35 | $ 91 | $ 77 |
Statutory federal tax rate | 21% | 21% | 21% | 21% |
Effective tax rate | 11.50% | 20.70% | 17.40% | 20.50% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 153.7 | $ 147.7 |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 5,818 | $ 5,436 | $ 5,653 | $ 5,150 |
Other comprehensive (loss) income before reclassifications | (38) | |||
Amounts reclassified from AOCI | 13 | |||
Other Comprehensive Income (Loss) | (27) | (126) | (25) | (316) |
Balance at end of period | 5,894 | 5,406 | 5,894 | 5,406 |
Unrealized Net Gains (Losses) on Debt Securities Available for Sale | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (269) | |||
Other comprehensive (loss) income before reclassifications | (22) | |||
Amounts reclassified from AOCI | 0 | |||
Other Comprehensive Income (Loss) | (22) | |||
Balance at end of period | (291) | (291) | ||
Unrealized Net Gains (Losses) on Derivative Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (44) | |||
Other comprehensive (loss) income before reclassifications | (17) | |||
Amounts reclassified from AOCI | 13 | |||
Other Comprehensive Income (Loss) | (4) | |||
Balance at end of period | (48) | (48) | ||
Unrecognized Pension and Postretirement Obligations | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (44) | |||
Other comprehensive (loss) income before reclassifications | 1 | |||
Amounts reclassified from AOCI | 0 | |||
Other Comprehensive Income (Loss) | 1 | |||
Balance at end of period | (43) | (43) | ||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (355) | (252) | (357) | (62) |
Balance at end of period | $ (382) | $ (378) | $ (382) | $ (378) |
EARNINGS PER COMMON SHARE - Com
EARNINGS PER COMMON SHARE - Computation of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 145 | $ 138 | $ 434 | $ 300 |
Less: Preferred stock dividends | 2 | 2 | 6 | 6 |
Net income available to common stockholders | 143 | 136 | 428 | 294 |
Net income available to common stockholders | $ 143 | $ 136 | $ 428 | $ 294 |
Basic weighted average common shares outstanding (in shares) | 360,847,457 | 350,910,562 | 360,603,432 | 348,868,423 |
Net effect of dilutive stock options and restricted stock (in shares) | 930,968 | 3,743,917 | 2,501,504 | 3,917,702 |
Diluted weighted average common shares outstanding (in shares) | 361,778,425 | 354,654,479 | 363,104,936 | 352,786,125 |
Earnings per common share: | ||||
Basic (USD per share) | $ 0.40 | $ 0.39 | $ 1.19 | $ 0.84 |
Diluted (USD per share) | $ 0.40 | $ 0.38 | $ 1.18 | $ 0.83 |
EARNINGS PER COMMON SHARE - Ave
EARNINGS PER COMMON SHARE - Average Shares Excluded from Earnings Per Common Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Average shares excluded from the diluted earnings per common share calculation (in shares) | 0 | 0 | 0 | 0 |
CASH FLOW INFORMATION - Summary
CASH FLOW INFORMATION - Summary of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid on deposits and other borrowings | $ 420 | $ 88 |
Income taxes paid | 94 | 56 |
Transfers of loans to other real estate owned | 2 | 1 |
Loans transferred to portfolio from held for sale | $ 33 | $ 0 |
CASH FLOW INFORMATION - Additio
CASH FLOW INFORMATION - Additional Information (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Supplemental Cash Flow Elements [Abstract] | ||
Restricted cash | $ 0 | $ 0 |
BUSINESS SEGMENTS - Additional
BUSINESS SEGMENTS - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
BUSINESS SEGMENTS - Financial I
BUSINESS SEGMENTS - Financial Information for Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Interest income | $ 513 | $ 343 | $ 1,441 | $ 877 | |
Interest expense | 187 | 46 | 449 | 92 | |
Net Interest Income | 326 | 297 | 992 | 785 | |
Provision for credit losses | 25 | 12 | 58 | 36 | |
Non-interest income | 81 | 83 | 241 | 243 | |
Non-interest expense | 213 | 192 | 635 | 605 | |
Amortization of intangibles | 5 | 3 | 15 | 10 | |
Income tax expense (benefit) | 19 | 35 | 91 | 77 | |
Net income (loss) | 145 | 138 | 434 | 300 | |
Total Assets | 45,496 | 42,590 | 45,496 | 42,590 | $ 43,725 |
Total intangibles | 2,551 | 2,487 | 2,551 | 2,487 | |
Operating Segments | Community Banking | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 512 | 342 | 1,437 | 874 | |
Interest expense | 180 | 41 | 425 | 82 | |
Net Interest Income | 332 | 301 | 1,012 | 792 | |
Provision for credit losses | 25 | 12 | 58 | 35 | |
Non-interest income | 60 | 62 | 172 | 179 | |
Non-interest expense | 194 | 174 | 576 | 554 | |
Amortization of intangibles | 5 | 3 | 15 | 9 | |
Income tax expense (benefit) | 19 | 36 | 96 | 78 | |
Net income (loss) | 149 | 138 | 439 | 295 | |
Total Assets | 45,305 | 42,458 | 45,305 | 42,458 | |
Total intangibles | 2,516 | 2,451 | 2,516 | 2,451 | |
Operating Segments | Wealth Management | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net Interest Income | 0 | 0 | 0 | 0 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Non-interest income | 18 | 16 | 54 | 48 | |
Non-interest expense | 12 | 11 | 38 | 32 | |
Amortization of intangibles | 0 | 0 | 0 | 0 | |
Income tax expense (benefit) | 2 | 1 | 4 | 3 | |
Net income (loss) | 4 | 4 | 12 | 13 | |
Total Assets | 40 | 37 | 40 | 37 | |
Total intangibles | 9 | 9 | 9 | 9 | |
Operating Segments | Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net Interest Income | 0 | 0 | 0 | 0 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Non-interest income | 4 | 7 | 18 | 20 | |
Non-interest expense | 5 | 5 | 14 | 14 | |
Amortization of intangibles | 0 | 0 | 0 | 1 | |
Income tax expense (benefit) | 0 | 0 | 1 | 1 | |
Net income (loss) | (1) | 2 | 3 | 4 | |
Total Assets | 30 | 33 | 30 | 33 | |
Total intangibles | 26 | 27 | 26 | 27 | |
Parent and Other | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 1 | 1 | 4 | 3 | |
Interest expense | 7 | 5 | 24 | 10 | |
Net Interest Income | (6) | (4) | (20) | (7) | |
Provision for credit losses | 0 | 0 | 0 | 1 | |
Non-interest income | (1) | (2) | (3) | (4) | |
Non-interest expense | 2 | 2 | 7 | 5 | |
Amortization of intangibles | 0 | 0 | 0 | 0 | |
Income tax expense (benefit) | (2) | (2) | (10) | (5) | |
Net income (loss) | (7) | (6) | (20) | (12) | |
Total Assets | 121 | 62 | 121 | 62 | |
Total intangibles | $ 0 | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | $ 3,145 | $ 3,275 | |
Loans held for sale | 92 | 91 | [1] |
Derivative financial instruments | 145 | 96 | |
Derivative financial instruments | 469 | 411 | |
U.S. Treasury | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 306 | 257 | |
U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 86 | 108 | |
U.S. government-sponsored entities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 303 | 262 | |
Agency mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 1,032 | 1,232 | |
Agency collateralized mortgage obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 840 | 972 | |
Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 521 | 395 | |
States of the U.S. and political subdivisions (municipals) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 26 | 29 | |
Other debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 31 | 20 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 306 | 257 | |
Derivative financial instruments | 0 | 0 | |
Derivative financial instruments | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 2,839 | 3,018 | |
Derivative financial instruments | 145 | 96 | |
Derivative financial instruments | 466 | 399 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Derivative financial instruments | 0 | 0 | |
Derivative financial instruments | 3 | 12 | |
Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 3,145 | 3,275 | |
Loans held for sale | 92 | 91 | |
Derivative financial instruments | 145 | 96 | |
Total assets measured at fair value on a recurring basis | 3,382 | 3,462 | |
Derivative financial instruments | 469 | 411 | |
Total liabilities measured at fair value on a recurring basis | 469 | 411 | |
Fair Value, Recurring | U.S. Treasury | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 306 | 257 | |
Fair Value, Recurring | U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 86 | 108 | |
Fair Value, Recurring | U.S. government-sponsored entities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 303 | 262 | |
Fair Value, Recurring | Agency mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 1,032 | 1,232 | |
Fair Value, Recurring | Agency collateralized mortgage obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 840 | 972 | |
Fair Value, Recurring | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 521 | 395 | |
Fair Value, Recurring | States of the U.S. and political subdivisions (municipals) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 26 | 29 | |
Fair Value, Recurring | Other debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 31 | 20 | |
Fair Value, Recurring | Trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 462 | 396 | |
Fair Value, Recurring | Not for trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 7 | 15 | |
Fair Value, Recurring | Trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 142 | 95 | |
Fair Value, Recurring | Not for trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 3 | 1 | |
Fair Value, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 306 | 257 | |
Loans held for sale | 0 | 0 | |
Derivative financial instruments | 0 | 0 | |
Total assets measured at fair value on a recurring basis | 306 | 257 | |
Derivative financial instruments | 0 | 0 | |
Total liabilities measured at fair value on a recurring basis | 0 | 0 | |
Fair Value, Recurring | Level 1 | U.S. Treasury | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 306 | 257 | |
Fair Value, Recurring | Level 1 | U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 1 | U.S. government-sponsored entities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 1 | Agency mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 1 | Agency collateralized mortgage obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 1 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 1 | States of the U.S. and political subdivisions (municipals) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 1 | Other debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 1 | Trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 0 | 0 | |
Fair Value, Recurring | Level 1 | Not for trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 0 | 0 | |
Fair Value, Recurring | Level 1 | Trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 0 | 0 | |
Fair Value, Recurring | Level 1 | Not for trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 0 | 0 | |
Fair Value, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 2,839 | 3,018 | |
Loans held for sale | 92 | 91 | |
Derivative financial instruments | 145 | 96 | |
Total assets measured at fair value on a recurring basis | 3,076 | 3,205 | |
Derivative financial instruments | 466 | 399 | |
Total liabilities measured at fair value on a recurring basis | 466 | 399 | |
Fair Value, Recurring | Level 2 | U.S. Treasury | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 2 | U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 86 | 108 | |
Fair Value, Recurring | Level 2 | U.S. government-sponsored entities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 303 | 262 | |
Fair Value, Recurring | Level 2 | Agency mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 1,032 | 1,232 | |
Fair Value, Recurring | Level 2 | Agency collateralized mortgage obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 840 | 972 | |
Fair Value, Recurring | Level 2 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 521 | 395 | |
Fair Value, Recurring | Level 2 | States of the U.S. and political subdivisions (municipals) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 26 | 29 | |
Fair Value, Recurring | Level 2 | Other debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 31 | 20 | |
Fair Value, Recurring | Level 2 | Trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 462 | 396 | |
Fair Value, Recurring | Level 2 | Not for trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 4 | 3 | |
Fair Value, Recurring | Level 2 | Trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 142 | 95 | |
Fair Value, Recurring | Level 2 | Not for trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 3 | 1 | |
Fair Value, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Derivative financial instruments | 0 | 0 | |
Total assets measured at fair value on a recurring basis | 0 | 0 | |
Derivative financial instruments | 3 | 12 | |
Total liabilities measured at fair value on a recurring basis | 3 | 12 | |
Fair Value, Recurring | Level 3 | U.S. Treasury | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 3 | U.S. government agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 3 | U.S. government-sponsored entities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 3 | Agency mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 3 | Agency collateralized mortgage obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 3 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 3 | States of the U.S. and political subdivisions (municipals) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 3 | Other debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | Level 3 | Trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 0 | 0 | |
Fair Value, Recurring | Level 3 | Not for trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 3 | 12 | |
Fair Value, Recurring | Level 3 | Trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | 0 | 0 | |
Fair Value, Recurring | Level 3 | Not for trading | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative financial instruments | $ 0 | $ 0 | |
[1]Amount represents loans for which we have elected the fair value option. See Note 19. |
FAIR VALUE MEASUREMENTS - Rollf
FAIR VALUE MEASUREMENTS - Rollforward on Recurring Basis (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Purchases, issuances, sales and settlements: | |||
Transfers from Level 3 | $ 0 | $ 0 | |
Fair Value, Recurring | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | 0 | 9,000,000 | $ 9,000,000 |
Purchases, issuances, sales and settlements: | |||
Issuances | 1,000,000 | ||
Settlements | (1,000,000) | (10,000,000) | |
Purchases | 2,000,000 | ||
Transfers from Level 3 | (1,000,000) | ||
Balance at end of period | 0 | 0 | |
Fair Value, Recurring | Other Debt Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | 0 | 0 | 0 |
Purchases, issuances, sales and settlements: | |||
Issuances | 0 | ||
Settlements | 0 | (1,000,000) | |
Purchases | 2,000,000 | ||
Transfers from Level 3 | (1,000,000) | ||
Balance at end of period | 0 | 0 | |
Fair Value, Recurring | Interest Rate Lock Commitments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | 0 | $ 9,000,000 | 9,000,000 |
Purchases, issuances, sales and settlements: | |||
Issuances | 1,000,000 | ||
Settlements | (1,000,000) | (9,000,000) | |
Purchases | 0 | ||
Transfers from Level 3 | 0 | ||
Balance at end of period | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value Measurements Disclosure [Line Items] | |||
Transfer of equity security to non-marketable equity securities, included in other assets | $ 0 | $ 0 | |
Collateral dependent loans, allowance for credit loss | 6,200,000 | ||
Provision for fair value measurements included in allowance for loan losses | 46,100,000 | ||
Fair Value, Nonrecurring | |||
Fair Value Measurements Disclosure [Line Items] | |||
Collateral dependent loans carrying value | 31,400,000 | ||
Carrying amount of OREO | 2,000,000 | ||
Valuation allowance of OREO | 300,000 | ||
Loss from OREO included in earnings | 700,000 | ||
Fair Value, Nonrecurring | SBA-Guaranteed Loan Servicing | |||
Fair Value Measurements Disclosure [Line Items] | |||
Servicing asset | 1,500,000 | ||
Valuation allowance for impairment of recognized servicing assets, recoveries | 200,000 | ||
Valuation allowance for impairment of recognized servicing assets | $ 1,400,000 | $ 1,600,000 |
FAIR VALUE MEASUREMENTS - Non-R
FAIR VALUE MEASUREMENTS - Non-Recurring Basis Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets - SBA servicing asset | $ 0 | $ 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets - SBA servicing asset | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets - SBA servicing asset | 77 | 71 |
Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent loans | 31 | 34 |
Other real estate owned | 2 | 3 |
Fair Value, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Fair Value, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Fair Value, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent loans | 31 | 34 |
Other real estate owned | 2 | 3 |
SBA-Guaranteed Loan Servicing | Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets - SBA servicing asset | 2 | 2 |
SBA-Guaranteed Loan Servicing | Fair Value, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets - SBA servicing asset | 0 | 0 |
SBA-Guaranteed Loan Servicing | Fair Value, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets - SBA servicing asset | 0 | 0 |
SBA-Guaranteed Loan Servicing | Fair Value, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets - SBA servicing asset | $ 2 | $ 2 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities available for sale | $ 3,145 | $ 3,275 |
Debt securities held to maturity | 3,403 | 3,687 |
Net loans and leases, including loans held for sale | 40 | 12 |
Derivative assets | 145 | 96 |
Long-term borrowings | 615 | |
Derivative liabilities | 469 | 411 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 1,637 | 1,674 |
Debt securities available for sale | 306 | 257 |
Debt securities held to maturity | 0 | 0 |
Net loans and leases, including loans held for sale | 0 | 0 |
Loan servicing rights | 0 | 0 |
Derivative assets | 0 | 0 |
Accrued interest receivable | 158 | 126 |
Deposits | 28,822 | 31,158 |
Short-term borrowings | 2,064 | 1,369 |
Long-term borrowings | 0 | 0 |
Derivative liabilities | 0 | 0 |
Accrued interest payable | 60 | 31 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Debt securities available for sale | 2,839 | 3,018 |
Debt securities held to maturity | 3,403 | 3,687 |
Net loans and leases, including loans held for sale | 92 | 91 |
Loan servicing rights | 0 | 0 |
Derivative assets | 145 | 96 |
Accrued interest receivable | 0 | 0 |
Deposits | 5,712 | 3,515 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 1,187 | 0 |
Derivative liabilities | 466 | 399 |
Accrued interest payable | 0 | 0 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Debt securities available for sale | 0 | 0 |
Debt securities held to maturity | 0 | 0 |
Net loans and leases, including loans held for sale | 29,641 | 28,917 |
Loan servicing rights | 77 | 71 |
Derivative assets | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 736 | 1,061 |
Derivative liabilities | 3 | 12 |
Accrued interest payable | 0 | 0 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 1,637 | 1,674 |
Debt securities available for sale | 3,145 | 3,275 |
Debt securities held to maturity | 3,922 | 4,087 |
Net loans and leases, including loans held for sale | 31,860 | 29,977 |
Loan servicing rights | 60 | 55 |
Derivative assets | 145 | 96 |
Accrued interest receivable | 158 | 126 |
Deposits | 34,615 | 34,770 |
Short-term borrowings | 2,066 | 1,372 |
Long-term borrowings | 1,968 | 1,093 |
Derivative liabilities | 469 | 411 |
Accrued interest payable | 60 | 31 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 1,637 | 1,674 |
Debt securities available for sale | 3,145 | 3,275 |
Debt securities held to maturity | 3,403 | 3,687 |
Net loans and leases, including loans held for sale | 29,733 | 29,008 |
Loan servicing rights | 77 | 71 |
Derivative assets | 145 | 96 |
Accrued interest receivable | 158 | 126 |
Deposits | 34,534 | 34,673 |
Short-term borrowings | 2,064 | 1,369 |
Long-term borrowings | 1,923 | 1,061 |
Derivative liabilities | 469 | 411 |
Accrued interest payable | $ 60 | $ 31 |