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VARIABLE INTEREST ENTITIES | 9 Months Ended
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Sep. 30, 2025
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. Additionally, we have an operating lease with a related party and a maximum exposure to loss of approximately $70 million and FNBPA made a construction loan to the same related party. For further information about this unconsolidated VIE, please see Note 7, "Leases." TABLE 8.1
(in millions) | Total Assets |  | Total Liabilities |  | Maximum Exposure to Loss
September 30, 2025 |  |  |  |  |
Trust preferred securities (1) | $ | 3 |  |  | $ | 74 |  |  | $ | — |
Tax credit partnerships | 165 |  |  | 59 |  |  | 165 |
Other investments | 37 |  |  | — |  |  | 37 |
Total | $ | 205 |  |  | $ | 133 |  |  | $ | 202 |
December 31, 2024 |  |  |  |  |
Trust preferred securities (1) | $ | 3 |  |  | $ | 73 |  |  | $ | — |
Tax credit partnerships | 164 |  |  | 68 |  |  | 164 |
Other investments | 34 |  |  | — |  |  | 34 |
Total | $ | 201 |  |  | $ | 141 |  |  | $ | 198 |
(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 9, “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 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, Historic and New Market Tax Credit Partnerships We make equity investments as a limited partner in various partnerships of affordable housing (LIHTC), historic tax credit (HTC) and new market tax credit (NMTC) programs pursuant to Sections 42, 47 and 45d of the Internal Revenue Code, respectively. The purpose of many of these investments is to support initiatives associated with the Community Reinvestment Act while earning a satisfactory return. The activities of the LIHTC partnerships include the development and operation of multi-family housing that is leased to qualifying residential tenants. HTC partnerships allow us to make investments in projects that involve the rehabilitation of historic structures, often combining our investments with bank financing. NMTC partnerships are designed to channel investments into distressed communities, fostering community development and stimulating economic growth. These tax credit 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 apply the proportional amortization method of accounting for our investments in LIHTC, HTC and NMTC partnerships. We record our investment in tax credit partnerships as a component of other assets. The following table presents the balances of our LIHTC, HTC and NMTC investments and related unfunded commitments: TABLE 8.2
(in millions) | September 30, 2025 |  | December 31, 2024
Tax credit investments included in other assets | $ | 106 |  |  | $ | 96 |
Unfunded tax credit investments | 59 |  |  | 68 |
The following table summarizes the impact of these tax credit investments on the provision for income taxes in our Consolidated Statements of Income: TABLE 8.3
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Provision for income taxes: |  |  |  |  |  |  |
Amortization of tax credit investments under proportional method | $ | 6 |  |  | $ | 5 |  |  | $ | 18 |  |  | $ | 16 |
Tax credits from tax credit investments | (6) |  |  | (5) |  |  | (19) |  |  | (16) |
Other tax benefits related to tax credit investments | (1) |  |  | — |  |  | (3) |  |  | (2) |
Total impact on provision for income taxes | $ | (1) |  |  | $ | — |  |  | $ | (4) |  |  | $ | (2) |
Other Investments Other investments we also consider to be unconsolidated VIEs include investments in Small Business Investment Companies and other equity method investments.

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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent + Details
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