FNB CORP/PA/

Previous wording

This MD&A represents an overview of, and highlights, material changes to our financial condition and consolidated results of operations at and for the three-month periods ended March 31, 2026 and 2025. This MD&A should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained herein and our 2025 Annual Report on Form 10-K filed with the SEC on February 24, 2026. Our results of operations for the three months ended March 31, 2026 are not necessarily indicative of results expected for the full year.

Current wording

This MD&A represents an overview of, and highlights, material changes to our financial condition and consolidated results of operations at and for the six-month periods ended June 30, 2026 and 2025. This MD&A should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained herein and our 2025 Annual Report on Form 10-K filed with the SEC on February 24, 2026. Our results of operations for the six months ended June 30, 2026 are not necessarily indicative of results expected for the full year.

Previous wording

•the volatility of the mortgage banking business;

Current wording

•the volatility of the mortgage banking business and real estate values, which can be influenced by economic conditions or trends, interest rates, and local market trends;

Previous wording

These non-GAAP financial measures should be viewed as supplemental in nature, and not as a substitute for, or superior to, our reported results prepared in accordance with GAAP. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included later in this Report under the heading “Reconciliations of Non-GAAP Financial Measures and Key Performance Indicators to GAAP”.

Current wording

These non-GAAP financial measures should be viewed as supplemental in nature, and not as a substitute for, or superior to, our reported results prepared in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included later in this Report under the heading “Reconciliations of Non-GAAP Financial Measures and Key Performance Indicators to GAAP”.

Previous wording

•Net interest income totaled $359.3 million, an increase of $35.4 million, or 10.9%, from the year-ago quarter, reflecting growth in average earning assets and lower interest-bearing deposit costs, partially offset by lower yields on earning assets.

Current wording

•Net interest income totaled $365.7 million, an increase of $18.5 million, or 5.3%, from the year-ago quarter, reflecting growth in average earning assets and lower interest-bearing deposit costs and borrowing costs, partially offset by lower yields on earning assets.

Previous wording

•The net interest margin (FTE) (non-GAAP) increased 22 basis points to 3.25% from the year-ago quarter primarily driven by a decrease in cost of funds by 31 basis points, partially offset by a decrease of 9 basis points in the yield on earning assets.

Current wording

•The net interest margin (FTE) (non-GAAP) increased 6 basis points to 3.25% from the year-ago quarter primarily driven by a decrease in cost of funds by 27 basis points, partially offset by a decrease of 20 basis points in the yield on earning assets. The FOMC has lowered the target federal funds rate by 175 basis points since August 2024.

Previous wording

•Total revenue totaled $450.3 million, a 9.4% increase from the year-ago quarter, driven by continued solid non-interest income generation and growth in net interest income.

Current wording

•Total revenue equaled $462.7 million, a 5.6% increase from the year-ago quarter, driven by continued solid non-interest income generation and growth in net interest income.

Previous wording

•The provision for credit losses was $18.5 million, an increase of 5.6% from the year-ago quarter, with net charge-offs of $15.9 million, or 0.18% annualized of total average loans, compared to $12.5 million, or 0.15% annualized, in the year-ago quarter, reflecting continued proactive management of the loan portfolio.

Current wording

•The provision for credit losses was $21.4 million, a decrease of 16.6% from the year-ago quarter, with net charge-offs of $17.0 million, or 0.19% annualized of total average loans, compared to $21.8 million, or 0.25% annualized, in the year-ago quarter, reflecting continued proactive management of the loan portfolio.

Previous wording

•For the quarter ending March 31, 2026, average loans and leases totaled $34.9 billion, an increase of $849.4 million, or 2.5%, over the quarter ending March 31, 2025, primarily driven by average consumer loan growth of $1.1 billion, partially offset by a decrease of $219.0 million in average commercial loans and leases. In December 2025, we transferred approximately $200 million of performing residential mortgage loans to held-for-sale in anticipation of a loan sale that closed in February 2026 as part of balance sheet management actions.

Current wording

•For the quarter ending June 30, 2026, average loans and leases totaled $35.5 billion, an increase of $1.0 billion, or 2.9%, over the quarter ending June 30, 2025, primarily driven by average consumer loan growth of $1.1 billion more than offsetting a slight decrease of $66.7 million in average commercial loans and leases.

Previous wording

•Average deposits totaled $38.4 billion, an increase of $1.4 billion, or 3.8%, from the year-ago quarter as the growth in average money market deposits of $1.0 billion, average interest-bearing demand deposits of $241.0 million and average non-interest-bearing demand deposits of $180.3 million more than offset the declines in average savings deposits of $42.0 million and average time deposits of $30.7 million.

Current wording

•Average deposits totaled $38.7 billion, an increase of $1.5 billion, or 4.1%, from the year-ago quarter with growth in average money market deposits of $727.3 million, average interest-bearing demand deposits of $541.0 million, average non-interest-bearing demand deposits of $129.8 million, average time deposits of $71.0 million and $65.4 million in average savings deposits.

Previous wording

•The loan-to-deposit ratio was 90.3% at March 31, 2026, compared to 89.7% at December 31, 2025 and 91.9% at March 31, 2025.

Current wording

•The loan-to-deposit ratio was 92.5% at June 30, 2026, compared to 90.3% at March 31, 2026 and 91.9% at June 30, 2025.

Previous wording

•The ratio of non-performing loans plus OREO to total loans and leases plus OREO increased 3 basis points from the prior quarter to 0.34%. Compared to March 31, 2025, the ratio decreased 14 basis points. Total delinquency decreased 1 basis point to 0.74%, compared to 0.75% at March 31, 2025, and increased 3 basis points from the prior quarter. The overall asset quality metrics remain at solid levels, reflecting continued proactive management of the loan portfolio.

Current wording

•The ratio of non-performing loans plus OREO to total loans and leases plus OREO decreased 3 basis points from the prior quarter to 0.31%. Total delinquency was 0.71%, a 3 basis point decline from the prior quarter. The overall asset quality metrics remain at solid levels, reflecting continued proactive management of the loan portfolio.

Previous wording

•The ACL on loans and leases was $443.0 million, an increase of $14.2 million compared to March 31, 2025, driven primarily by loan growth, with the ratio of the ACL to total loans and leases increasing 1 basis point to 1.26%.

Current wording

•The ACL on loans and leases was $447.3 million, an increase of $15.3 million compared to June 30, 2025, driven primarily by loan growth, with the ratio of the ACL to total loans and leases remaining stable at 1.25%.

Previous wording

•Tangible book value per common share (non-GAAP) of $12.06 increased 11.4% compared to March 31, 2025, and 1.6% compared to December 31, 2025. Reflecting the impact of unrealized losses on AFS securities. AOCI reduced the tangible book value per common share (non-GAAP) by $0.24 as of March 31, 2026, compared to a reduction of $0.34 as of March 31, 2025, and $0.18 as of December 31, 2025.

Current wording

•Tangible book value per common share (non-GAAP) of $12.24 increased $1.10, or 9.9%, compared to June 30, 2025, and 1.5% compared to March 31, 2026. Reflecting the impact of unrealized losses on AFS securities, AOCI reduced the tangible book value per common share (non-GAAP) by $0.29 as of June 30, 2026, compared to a reduction of $0.26 as of June 30, 2025, and $0.24 as of March 31, 2026.

Previous wording

•The CET1 capital ratio was 11.4%, compared to 10.7% at March 31, 2025 and 11.4% at December 31, 2025. The tangible common equity to tangible assets ratio (non-GAAP) was 8.9%, compared to 8.4% at March 31, 2025 and 8.9% at December 31, 2025.

Current wording

•The CET1 capital ratio was 11.4%, compared to 10.8% at June 30, 2025 and 11.4% at March 31, 2026. The tangible common equity to tangible assets ratio (non-GAAP) was 8.9%, compared to 8.5% at June 30, 2025 and 8.9% at March 31, 2026.

Previous wording

Net income for the first quarter of 2026 was $137.0 million, or $0.38 per diluted common share. Comparatively, first quarter of 2025 net income totaled $116.5 million, or $0.32 per diluted common share. On an operating basis, there were no significant items impacting earnings for the first quarters of 2026 and 2025.

Current wording

Net income for the three months ended June 30, 2026 was $148.7 million, or $0.42 per diluted common share, compared to $130.7 million, or $0.36 per diluted common share, for the three months ended June 30, 2025. There were no significant items impacting earnings for the second quarters of 2026 and 2025.

Previous wording

The following table provides certain information regarding changes in net interest income on an FTE basis (non-GAAP) attributable to changes in the average volumes and yields earned on average interest-earning assets and the average volume and rates paid for average interest-bearing liabilities for the three months ended March 31, 2026, compared to the three months ended March 31, 2025:

Current wording

The following table provides certain information regarding changes in net interest income on an FTE basis (non-GAAP) attributable to changes in the average volumes and yields earned on interest-earning assets and the average volume and rates paid for interest-bearing liabilities for the three months ended June 30, 2026, compared to the three months ended June 30, 2025:

Previous wording

Net income for the first three months of 2026 was $137.0 million, or $0.38 per diluted common share, compared to $116.5 million, or $0.32 per diluted common share for the first three months of 2025. On an operating basis, there were no significant items impacting earnings for the first quarters of 2026 and 2025.

Current wording

Net income for the first six months of 2026 was $285.8 million, or $0.80 per diluted common share, compared to $247.2 million, or $0.68 per diluted common share, for the first six months of 2025. There were no significant items impacting earnings for the first six months of 2026 and 2025.

Previous wording

Net interest income totaled $359.3 million, an increase of $35.4 million, or 10.9%, compared to $323.8 million, reflecting growth in average earning assets and lower interest-bearing deposit costs, partially offset by balance growth in higher yielding deposit products. The net interest margin (FTE) (non-GAAP) increased 22 basis points to 3.25%. Total cost of funds decreased 31 basis points to 2.01% with a 36 basis point decrease in interest-bearing deposit costs to 2.40% and a 57 basis point decrease in total borrowing costs. The yield on earning assets (non-GAAP) declined 9 basis points to 5.14%, driven by a 12 basis point decline in yields on loans to 5.56%, offset by a 13 basis point increase in yields on investment securities to 3.54%. The FOMC has lowered the target federal funds rate by 175 basis points since August 2024. The provision for credit losses for the first three months of 2026 totaled $18.5 million, compared to $17.5 million. Net charge-offs for the first three months of 2026 totaled $15.9 million, or 0.18% annualized of total average loans, compared to $12.5 million, or 0.15% annualized. Non-interest income totaled $91.0 million, compared to $87.8 million, reflecting increased capital markets income, wealth management revenue and other non-interest income. Non-interest expense totaled $257.9 million, increasing $11.1 million, or 4.5%. Net occupancy and equipment expense increased $5.1 million, or 11.1%, primarily due to technology-related investments and higher occupancy costs, which included unusually high seasonal snow removal costs.

Current wording

Net interest income totaled $725.0 million, an increase of $54.0 million, or 8.0%, compared to $671.0 million, reflecting growth in average earning assets and lower interest-bearing deposit costs and borrowing costs, partially offset by a lower yield on interest earning assets. The net interest margin (FTE) (non-GAAP) increased 14 basis points to 3.25%. The provision for credit losses for the first six months of 2026 totaled $39.8 million, compared to $43.1 million. Net charge-offs for the first six months of 2026 totaled $32.8 million, or 0.19% annualized of total average loans, compared to $34.3 million, or 0.20% annualized. Non-interest income totaled $187.9 million, an increase of $9.2 million, or 5.1%, compared to $178.8 million, reflecting increased capital markets income, wealth management revenue and other non-interest income. Non-interest expense totaled $511.1 million, increasing $18.1 million, or 3.7%, reflecting increased salaries and employee benefit costs, net occupancy and equipment expense and outside services expense.

Previous wording

Net interest income on an FTE basis (non-GAAP) totaled $362.4 million, increasing $35.6 million, or 10.9%, reflecting growth in average earning assets and lower interest-bearing deposit costs, partially offset by lower yields on earning assets. The net interest margin (FTE) (non-GAAP) increased 22 basis points to 3.25%. The yield on earning assets (non-GAAP) decreased 9 basis points to 5.14%, driven by a 12 basis point decline in yields on loans to 5.56%, partially offset by a 13 basis point increase in yields on investment securities to 3.54%. Total cost of funds decreased 31 basis points to 2.01%, with a 36 basis point decrease in interest-bearing deposit costs to 2.40% and a 57 basis point decrease in total borrowing costs. The FOMC has lowered the target federal funds rate by 175 basis points since August 2024.

Current wording

Net interest income on an FTE basis (non-GAAP) totaled $731.3 million, increasing $54.2 million, or 8.0%, reflecting growth in average earning assets and lower interest-bearing deposit costs and borrowing costs, partially offset by lower yields on earning assets. The net interest margin (FTE) (non-GAAP) increased 14 basis points to 3.25%. The yield on earning assets (non-GAAP) decreased 15 basis points to 5.13%, driven by a 19 basis point decline in yields on loans to 5.54%, partially offset by a 15 basis point increase in yields on investment securities to 3.58%. Total cost of funds decreased 29 basis points to 2.00%, with a 33 basis point decrease in interest-bearing deposit costs to 2.38% and a 53 basis point decrease in total borrowing costs. The FOMC has lowered the target federal funds rate by 175 basis points since August 2024.

Previous wording

Interest income on an FTE basis (non-GAAP) of $572.4 million, increased $10.0 million, or 1.8%, resulting from growth in average earning assets of $1.5 billion. The increase in average earning assets was primarily driven by an $849.4 million, or 2.5%, increase in average loans and leases and an increase of $420.9 million in average investment securities, partially offset by a reduction in yield of 9 basis points of interest earning assets.

Current wording

Interest income on an FTE basis (non-GAAP) of $1.2 billion, increased $5.4 million, or 0.5%, resulting from growth in average earning assets of $1.4 billion, partially offset by a decrease in yield. The increase in average earning assets was primarily driven by a $924.5 million, or 2.7%, increase in average loans and leases and an increase of $399.6 million in average investment securities.

Previous wording

Interest expense of $210.0 million decreased $25.6 million primarily due to a 31 basis point reduction in the cost of funds, partially offset by the growth in average interest-bearing deposits. Average total deposits increased $1.4 billion, or 3.8%, reflecting robust organic growth in new and existing customer relationships. The funding mix was stable with non-interest-bearing demand deposits comprising 26% of total deposits at both March 31, 2026 and March 31, 2025. Average short-term borrowings increased $604.4 million, or 44.0%, at lower yields while our average long-term borrowings decreased $843.1 million, or 29.8%, which included the maturity of $350 million in senior notes in August 2025 and $100 million in subordinated notes in October 2025, combined with a decline in average long-term FHLB borrowings. The decrease in total cost of funds is comprised of a 57 basis point decrease in total borrowing costs and a 36 basis point decrease in interest-bearing deposit costs to 2.40%.

Current wording

Interest expense of $422.3 million decreased $48.7 million primarily due to a 29 basis point reduction in the cost of funds, partially offset by the growth in average interest-bearing deposits. Average total deposits increased $1.5 billion, or 4.0%, reflecting solid organic growth in new and existing customer relationships. The funding mix was stable with non-interest-bearing demand deposits comprising 26% of total deposits at both June 30, 2026 and June 30, 2025. Average short-term borrowings increased $416.0 million, or 25.6%, at lower yields, while average long-term borrowings decreased $791.2 million, or 28.4%, which included the maturity of $350 million in senior notes in August 2025 and $100 million in subordinated notes in October 2025, combined with a decline in average long-term FHLB borrowings. The decrease in total cost of funds is comprised of a 53 basis point decrease in total borrowing costs and a 33 basis point decrease in interest-bearing deposit costs to 2.38%.

Previous wording

The provision for credit losses on loans and leases was $18.4 million, compared to $17.5 million for the first three months of 2025. The first three months of 2026 included net charge-offs of $15.9 million, or 0.18% annualized of total average loans, compared to $12.5 million, or 0.15% annualized, in the first three months of 2025, reflecting continued proactive management of the loan portfolio. The ACL on loans and leases was $443.0 million, an increase of $14.2 million, with the ratio of the ACL to total loans and leases increasing 1 basis point to 1.26%.

Current wording

The provision for credit losses on loans and leases was $39.6 million, compared to $43.1 million for the first six months of 2025. The first six months of 2026 included net charge-offs of $32.8 million, or 0.19% annualized of total average loans, compared to $34.3 million, or 0.20% annualized, in the first six months of 2025, reflecting continued proactive management of the loan portfolio. The ACL on loans and leases was $447.3 million, an increase of $15.3 million, with the ratio of the ACL to total loans and leases remaining stable at 1.25%.

Previous wording

Total non-interest income increased $3.2 million, or 3.7%. The variances in significant individual non-interest income items are explained in the following paragraphs.

Current wording

Total non-interest income increased $9.2 million, or 5.1%. The variances in significant individual non-interest income items are explained in the following paragraphs.

Previous wording

Wealth management revenues increased $0.6 million, or 2.8%, as trust services income and securities commissions and fees increased 3.5% and 1.8%, respectively, through continued strong contributions across the geographic footprint.

Current wording

Wealth management revenues increased $2.2 million, or 5.3%, as trust services income and securities commissions and fees increased 5.9% and 4.4%, respectively, through continued strong contributions across the geographic footprint.

Previous wording

Capital markets income increased $1.5 million, or 27.8%, reflecting solid contributions from debt capital markets, swap fees and international banking income.

Current wording

Capital markets income increased $2.6 million, or 21.2%, reflecting solid contributions from debt capital markets, customer interest rate derivative revenue and international banking income.

Previous wording

Other non-interest income was $4.2 million and $2.8 million for the first three months of 2026 and 2025, respectively, with the first three months of 2026 higher due to miscellaneous gains.

Current wording

Other non-interest income was $11.2 million and $8.8 million for the first six months of 2026 and 2025, respectively, with the increase primarily due to higher residual gains on equipment leases.

Previous wording

Total non-interest expense of $257.9 million for the first three months of 2026 increased $11.1 million, a 4.5% increase from the same period of 2025. The variances in the individual non-interest expense items are further explained in the following paragraphs.

Current wording

Total non-interest expense for the first six months of 2026 increased $18.1 million, a 3.7% increase from the same period of 2025. The variances in the individual non-interest expense items are further explained in the following paragraphs.

Previous wording

Net occupancy and equipment expense of $50.7 million increased $5.1 million, or 11.1%, primarily due to technology-related investments and higher occupancy costs, which included unusually high seasonal snow removal costs.

Current wording

Net occupancy and equipment expense increased $7.5 million, or 8.1%, primarily due to technology-related investments and higher occupancy costs, which included unusually high seasonal snow removal costs in the first quarter of 2026.

Previous wording

Marketing decreased $1.0 million, or 21.3%, primarily due to the timing of certain marketing campaigns.

Current wording

Marketing expense decreased $2.0 million, or 21.2%, primarily due to the timing of certain marketing campaigns.

Previous wording

FDIC insurance decreased $1.0 million, or 12.2%, primarily due to improved credit quality, which has led to a lower FDIC assessment rate.

Current wording

FDIC insurance decreased $1.7 million, or 9.6%, primarily due to a lower FDIC assessment rate.

Previous wording

Other non-interest expense was $29.3 million and $22.5 million for the first three months of 2026 and 2025, respectively, with the increase due to higher fraud losses, various litigation-related expenses and the impact of Community Uplift, an affordable mortgage down payment assistance program.

Current wording

Other non-interest expense was $52.4 million and $48.4 million for the first six months of 2026 and 2025, respectively, with the increase due to higher fraud losses, various litigation-related expenses and the impact of Community Uplift, an affordable mortgage down payment assistance program.

Previous wording

Income tax expense was higher for the three months ended March 31, 2026, primarily due to higher pre-tax income.

Current wording

Income tax expense was higher for the six months ended June 30, 2026, primarily due to higher pre-tax income, offset slightly by higher deduction levels from employee stock compensation vesting.

Previous wording

Our commercial real estate portfolio included $8.3 billion of non-owner-occupied loans of which 17.4% represented office loans. Our top 25 non-owner-occupied commercial real estate loans averaged approximately $22 million per exposure with the office component primarily made up of mid-sized offices located outside of central business districts with an average office loan size of $1.6 million. Additionally, we have a continued focus on core commercial and industrial lending activity with traditional middle market customers. Our minimal non-depository financial institution (NDFI) balances at 1.4% of total loans is well below peer and industry median levels with the large majority of FNB’s NDFI portfolio in the FNBPA Call Report’s “Other Loans” category which supports firm’s working capital and acquisition growth strategies, not lending activities. For consumer lending, residential mortgages increased $156.0 million, compared to December 31, 2025, largely due to the continued successful execution in key markets and long-standing strategy of serving the purchase market.

Current wording

Our commercial real estate portfolio included $8.2 billion of non-owner-occupied loans of which 17.3% represented office loans. Our top 25 non-owner-occupied commercial real estate loans averaged approximately $22 million per exposure with the office component primarily made up of mid-sized offices located outside of central business districts with an average office loan size of $1.6 million. Additionally, we have a continued focus on core commercial and industrial lending activity with traditional middle market customers. Our minimal non-depository financial institution (NDFI) balances at 1.6% of total loans is well below peer and industry median levels with the large majority of FNB’s NDFI portfolio in the FNBPA Call Report’s “Other Loans” category which supports firm’s working capital and acquisition growth strategies, not lending activities. For consumer lending, residential mortgages increased $589.0 million, compared to December 31, 2025, largely due to the continued successful execution in key markets and long-standing strategy of serving the purchase market.

Previous wording

Non-performing assets increased $12.2 million, from $108.4 million at December 31, 2025 to $120.5 million at March 31, 2026, with the ratio of non-performing loans and OREO to total loans and leases and OREO increasing 3 basis points to 0.34% and levels remaining at or near historically low levels.

Current wording

Non-performing assets increased $3.9 million, or 3.7%, from December 31, 2025, with the ratio of non-performing loans and OREO to total loans and leases and OREO remaining flat at 0.31% and levels remaining at or near historically low levels.

Previous wording

At March 31, 2026 and December 31, 2025, we utilized a third-party consensus macroeconomic forecast reflecting the current and projected macroeconomic environment. For our ACL calculation at March 31, 2026, the macroeconomic variables that we utilized included, but were not limited to: (i) the purchase only Housing Price Index, which increases 4.0% over our R&S forecast period, (ii) a CRE Price Index, which increases 1.3% over our R&S forecast period, (iii) S&P Volatility, which increases 17.5% in 2026 and decreases 4.6% in 2027 and (iv) personal and business bankruptcies, which increase and decrease, respectively, over the R&S forecast period but average below the historical through-the-cycle period. Macroeconomic variables that we utilized for our ACL calculation as of December 31, 2025 included, but were not limited to: (i) the purchase only Housing Price Index, which increases 4.3% over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which decreases 0.5% over our R&S forecast period, (iii) S&P Volatility, which decreases 2.2% in 2026 and 7.9% in 2027 and (iv) personal and business bankruptcies, which increase steadily over the R&S forecast period but average below the historical through-the-cycle period.

Current wording

At June 30, 2026 and December 31, 2025, we utilized a third-party consensus macroeconomic forecast reflecting the current and projected macroeconomic environment. For our ACL calculation at June 30, 2026, the macroeconomic variables that we utilized included, but were not limited to: (i) the purchase only Housing Price Index, which increases 4.1% over our R&S forecast period, (ii) a CRE Price Index, which increases 0.9% over our R&S forecast period, (iii) S&P Volatility, which increases 19.1% in 2026 and decreases 7.4% in 2027 and (iv) personal and business bankruptcies, which increase and decrease, respectively, over the R&S forecast period but average below the historical through-the-cycle period. Macroeconomic variables that we utilized for our ACL calculation as of December 31, 2025 included, but were not limited to: (i) the purchase only Housing Price Index, which increases 4.3% over our R&S forecast period, (ii) a Commercial Real Estate Price Index, which decreases 0.5% over our R&S forecast period, (iii) S&P Volatility, which decreases 2.2% in 2026 and 7.9% in 2027 and (iv) personal and business bankruptcies, which increase steadily over the R&S forecast period but average below the historical through-the-cycle period.

Previous wording

The ACL on loans and leases of $443.0 million at March 31, 2026 increased $3.5 million, or 0.8%, from December 31, 2025 with our ending ACL coverage ratio stable at 1.26%. The ACL as a percentage of non-performing loans for the total portfolio decreased to 377% as of March 31, 2026, compared to 418% as of December 31, 2025, with coverage levels remaining at historically high levels.

Current wording

The ACL on loans and leases of $447.3 million at June 30, 2026 increased $7.8 million, or 1.8%, from December 31, 2025, while our ending ACL coverage ratio declined 1 basis point to 1.25%. The ACL as a percentage of non-performing loans for the total portfolio increased to 404% as of June 30, 2026, compared to 371% as of June 30, 2025 and decreased from 418% as of December 31, 2025, with coverage levels remaining at historically high levels.

Previous wording

Total provision for credit losses for the three months ended March 31, 2026 was $18.5 million, compared to $17.5 million for the same period in 2025. Net charge-offs were $15.9 million for the three months ended March 31, 2026, compared to $12.5 million for the first three months of 2025.

Current wording

Total provision for credit losses for the six months ended June 30, 2026 was $39.8 million, compared to $43.1 million for the same period in 2025. Net charge-offs were $32.8 million for the six months ended June 30, 2026, compared to $34.3 million for the first six months of 2025.

Previous wording

Total deposits increased $141.8 million, or 0.4%, from December 31, 2025, due to growth in new and existing customer relationships. We ended the quarter with approximately 76% of all deposits insured by the FDIC or collateralized.

Current wording

The mix of non-interest-bearing demand deposits to total deposits was stable at 26% at both June 30, 2026 and December 31, 2025. We ended the quarter with approximately 76% of all deposits insured by the FDIC or collateralized.

Previous wording

During the first quarter of 2026, we repurchased $35.3 million, or 2.0 million shares, of common stock at a weighted average share price of $17.41. In April 2026, we announced that our Board of Directors authorized a new share repurchase program. Including the authority remaining under the previous program, total repurchase capacity is $300 million. The repurchases will be made from time to time on the open market at prevailing market prices or in privately negotiated transactions. The purchases will be funded from available working capital. There is no guarantee as to the exact number of shares that will be repurchased and we may discontinue purchases at any time.

Current wording

During the second quarter of 2026, we repurchased $47.0 million, or 2.7 million shares, of common stock at a weighted average share price of $17.46, as we focused on optimizing capital deployment with our strong retained earnings. In April 2026, we announced that our Board of Directors authorized a new share repurchase program. Including the authority remaining under the previous program, total repurchase capacity is approximately $253 million at June 30, 2026. The repurchases will be made from time to time on the open market at prevailing market prices or in privately negotiated transactions. The purchases will be funded from available working capital. There is no guarantee as to the exact number of shares that will be repurchased and we may discontinue purchases at any time.

Previous wording

Management utilizes various strategies to ensure sufficient cash on hand is available to meet the parent company's funding needs. Significant funding sources for the parent company include dividends from subsidiaries, other operating income and access to the capital markets. During the first quarter of 2026, FNBPA paid dividends to the parent of $75 million, an increase of $20 million when compared to the fourth quarter of 2025, and within the regulatory capacity to pay dividends to FNB. The Board of Directors regularly reviews appropriate levels of dividends from subsidiaries. In addition, we repurchased $35.3 million, or 2.0 million shares, of FNB stock at an average cost of $17.41. In April 2026, we announced that our Board of Directors authorized a new share repurchase program. Including the authority remaining under the previous program, total repurchase capacity is approximately $300 million as of April 15, 2026. The parent company's cash position at March 31, 2026 was $277.0 million. We have historically been opportunistic when accessing the capital markets, and we expect to continue with that strategy. Additionally, in April 2026, our Board of Directors declared a quarterly common stock cash dividend of $0.13, an 8% increase, beginning with the common dividend payable on June 15, 2026.

Current wording

Management utilizes various strategies to ensure sufficient cash on hand is available to meet the parent company's funding needs. Significant funding sources for the parent company include dividends from subsidiaries, other operating income and access to the capital markets. During the second quarter of 2026, FNBPA paid dividends to the parent of $95 million, an increase of $20 million when compared to the first quarter of 2026, and well within the regulatory capacity to pay dividends to FNB. The Board of Directors regularly reviews appropriate levels of dividends from subsidiaries. In April 2026, we announced that our Board of Directors authorized a new share repurchase program. During the second quarter of 2026, we repurchased $47 million, or 2.7 million shares, of FNB stock at an average cost of $17.46. Including the authority remaining under the previous program, total repurchase capacity is approximately $253 million as of June 30, 2026. The parent company's cash position at June 30, 2026 was $272.9 million. We have historically been opportunistic when accessing the capital markets, and we expect to continue with that strategy. Additionally, in April 2026, our Board of Directors declared a quarterly common stock cash dividend of $0.13, an 8% increase, beginning with the common dividend paid on June 15, 2026.