BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2019

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 and investment advisory services, mutual funds and annuities.


•	The Insurance segment includes a full-service insurance agency offering all lines of commercial and personal insurance through major carriers. The Insurance segment also includes a reinsurer.

We also previously operated a Consumer Finance segment, which is no longer a reportable segment. This segment primarily made installment loans to individuals and purchased installment sales finance contracts from retail merchants. On August 31, 2018, as part of our strategy to enhance the overall positioning of our consumer banking operations, we sold 100 percent of the issued and outstanding capital stock of Regency to Mariner Finance, LLC. This transaction was completed to accomplish several strategic objectives, including enhancing the credit risk profile of the consumer loan portfolio, offering additional liquidity and selling a non-strategic business segment that no longer fits with our core business. Regency's financial information is included in the Consumer Finance segment in the 2018 tables that follows.

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 16.1




(in millions)	Community Banking		Wealth Management		Insurance		Consumer Finance		Parent and Other			Consolidated
At or for the Three Months Ended June 30, 2019
Interest income	$	316	$	—	$	—	$	—	$	1		$	317
Interest expense	81		—		—		—		6			87
Net interest income	235		—		—		—		(5		)	230
Provision for credit losses	11		—		—		—		—			11
Non-interest income	61		12		4		—		(2		)	75
Non-interest expense ⁽¹⁾	157		9		4		—		2			172
Amortization of intangibles	3		—		—		—		—			3
Income tax expense (benefit)	24		1		—		—		(1		)	24
Net income (loss)	101		2		—		—		(8		)	95
Total assets	33,785		27		35		—		56			33,903
Total intangibles	2,297		10		29		—		—			2,336
At or for the Three Months Ended June 30, 2018
Interest income	$	285	$	—	$	—	$	9	$	—		$	294
Interest expense	50		—		—		1		3			54
Net interest income	235		—		—		8		(3		)	240
Provision for credit losses	14		—		—		2		—			16
Non-interest income	51		11		4		1		(2		)	65
Non-interest expense ⁽¹⁾	159		9		4		5		2			179
Amortization of intangibles	4		—		—		—		—			4
Income tax expense (benefit)	21		—		—		1		(1		)	21
Net income (loss)	88		2		—		1		(6		)	85
Total assets	32,035		25		22		168		8			32,258
Total intangibles	2,311		10		12		2		—			2,335
(1) Excludes amortization of intangibles, which is presented separately.



(in millions)	Community Banking		Wealth Management		Insurance		Consumer Finance		Parent and Other			Consolidated
At or for the Six Months Ended June 30, 2019
Interest income	$	626	$	—	$	—	$	—	$	1		$	627
Interest expense	157		—		—		—		9			166
Net interest income	469		—		—		—		(8		)	461
Provision for credit losses	25		—		—		—		—			25
Non-interest income	112		23		9		—		(4		)	140
Non-interest expense ⁽¹⁾	304		18		8		—		4			334
Amortization of intangibles	7		—		—		—		—			7
Income tax expense (benefit)	47		1		—		—		(2		)	46
Net income (loss)	198		4		1		—		(14		)	189
Total assets	33,785		27		35		—		56			33,903
Total intangibles	2,297		10		29		—		—			2,336
At or for the Six Months Ended June 30, 2018
Interest income	$	548	$	—	$	—	$	19	$	—		$	567
Interest expense	92		—		—		2		7			101
Net interest income	456		—		—		17		(7		)	466
Provision for credit losses	26		—		—		4		—			30
Non-interest income	104		22		8		1		(3		)	132
Non-interest expense ⁽¹⁾	308		17		8		10		3			346
Amortization of intangibles	8		—		—		—		—			8
Income tax expense (benefit)	43		1		—		1		(3		)	42
Net income (loss)	175		4		—		3		(10		)	172
Total assets	32,035		25		22		168		8			32,258
Total intangibles	2,311		10		12		2		—			2,335

(1) Excludes amortization of intangibles, which is presented separately.