LEASES

9 Months Ended

Sep. 30, 2025

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, 2025, we had operating lease right-of-use assets and operating lease liabilities of $195.7 million and $237.1 million, respectively, including $71.4 million in operating right-of-use assets and $102.3 million in operating lease liabilities with a related party. As of September 30, 2025, we had finance lease right-of-use assets and finance lease liabilities of $32.9 million and $35.8 million, respectively.

Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of September 30, 2025, we have certain operating lease agreements, primarily for administrative office space, that are expected to commence in 2026 with lease terms of up to 20 years. At commencement, it is expected that these leases will add approximately $5.0 million in right-of-use assets and $5.0 million in other liabilities. In late 2024, the majority of FNB's Pittsburgh-based employees moved into the new headquarters building, consolidating several offices, subsidiaries and support departments under one roof to create opportunities for continued efficiency, collaboration and productivity enhancements. 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 7.1


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2025		2024		2025		2024
Operating lease cost	$	10	$	11	$	30	$	30

Variable lease cost	1		1		4		4

Finance lease cost	1		—		3		2
Total lease cost	$	12	$	12	$	37	$	36

Other information related to leases is as follows:

TABLE 7.2


	Nine Months Ended September 30,
(dollars in millions)	2025			2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	28		$	25
Operating cash flows from finance leases	$	1		$	1
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	19		$	25
Finance leases	$	—		$	4
Weighted average remaining lease term (years):
Operating leases	11			11
Finance leases	17			19
Weighted average discount rate:
Operating leases	4.0		%	3.9		%
Finance leases	3.6		%	3.4		%

Future cash flows of lease liabilities are as follows:

TABLE 7.3


(in millions)	Operating Leases		Finance Leases		Total Leases
September 30, 2025
0 - 12 months	$	36	$	2	$	38
13 - 24 months	32		3		35
25 - 36 months	29		3		32
37 - 48 months	26		3		29
49 - 60 months	24		3		27
Later years	149		34		183
Total lease payments	296		48		344
Less: imputed interest	(59)		(12)		(71)
Present value of lease liabilities	$	237	$	36	$	273

As a lessor we offer commercial leasing services to customers in need of new or used equipment primarily within our market areas of Pennsylvania, Ohio, Maryland, North Carolina, South Carolina and West Virginia. Additional information relating to commercial leasing is provided in Note 4, “Loans and Leases” in the Notes to Consolidated Financial Statements.

LEASES