INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

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 December 31, 2025 and December 31, 2024. Accrued interest receivable on AFS debt securities totaled $16.2 million and $14.3 million at December 31, 2025 and 2024, 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 amortized cost basis of AFS debt securities.

TABLE 3.1


(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities AFS:
December 31, 2025
U.S. Treasury	$	354	$	2	$	—	$	356
U.S. government agencies	35		—		—		35
U.S. GSE	266		—		—		266
Residential MBS:
Agency MBS	801		7		(8)		800
Agency CMO	662		—		(61)		601

Agency commercial MBS	1,595		19		(15)		1,599
States of the U.S. and political subdivisions (municipals)	20		—		(1)		19
Other debt securities	50		1		—		51
Total debt securities AFS	$	3,783	$	29	$	(85)	$	3,727


(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities AFS:
December 31, 2024
U.S. Treasury	$	274	$	1	$	(1)	$	274
U.S. government agencies	53		—		—		53
U.S. GSE	302		—		(2)		300
Residential MBS:
Agency MBS	714		—		(20)		694
Agency CMO	796		—		(98)		698

Agency commercial MBS	1,420		3		(35)		1,388
States of the U.S. and political subdivisions (municipals)	24		—		(2)		22
Other debt securities	37		—		—		37
Total debt securities AFS	$	3,620	$	4	$	(158)	$	3,466

The amortized cost and fair value of HTM debt securities are presented in the following table. The ACL for the HTM portfolio was $0.29 million and $0.25 million at December 31, 2025 and 2024, respectively. Accrued interest receivable on HTM debt securities totaled $15.7 million and $14.6 million at December 31, 2025 and 2024, 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 amortized cost basis of HTM debt securities.

TABLE 3.2


(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities HTM:
December 31, 2025



Residential MBS:
Agency MBS	$	784	$	2	$	(55)	$	731
Agency CMO	612		—		(62)		550

Agency commercial MBS	1,715		18		(19)		1,714
States of the U.S. and political subdivisions (municipals)	982		1		(60)		923
Other debt securities	24		—		(1)		23
Total debt securities HTM	$	4,117	$	21	$	(197)	$	3,941


(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities HTM:
December 31, 2024
U.S. Treasury	$	1	$	—	$	—	$	1

U.S. GSE	29		—		—		29
Residential MBS:
Agency MBS	901		1		(96)		806
Agency CMO	714		—		(95)		619

Agency commercial MBS	1,326		2		(44)		1,284
States of the U.S. and political subdivisions (municipals)	992		—		(103)		889
Other debt securities	16		—		—		16
Total debt securities HTM	$	3,979	$	3	$	(338)	$	3,644

Net unrealized losses on the AFS and HTM portfolios are primarily due to the increase in market interest rates since the time of purchase with 86.3% of these securities backed or sponsored by the U.S. government as of December 31, 2025. There were no significant gross gains or losses realized on investment securities during 2025. During 2024, we sold $231.4 million of AFS securities resulting in a realized loss of $34.0 million as part of a proactive balance sheet management strategy. We reinvested the proceeds of these AFS securities sold with an average yield of 1.41% into securities yielding 4.78% with a similar duration and convexity profile. During 2023, we sold $648.7 million of AFS securities resulting in a realized loss of $67.4 million as part of a proactive balance sheet management strategy. We reinvested the proceeds of these AFS securities sold with an average yield of 1.08% into securities with yields approximately 350 basis points higher and a similar duration and convexity profile.

As of December 31, 2025, the amortized cost and fair value of debt securities, by contractual maturities, were as follows:

TABLE 3.3


	Available for Sale				Held to Maturity
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	180	$	181	$	4	$	4
Due after one year but within five years	432		433		100		97
Due after five years but within ten years	95		96		259		249
Due after ten years	18		17		643		596
	725		727		1,006		946
Residential MBS:
Agency MBS	801		800		784		731
Agency CMO	662		601		612		550

Agency commercial MBS	1,595		1,599		1,715		1,714
Total debt securities	$	3,783	$	3,727	$	4,117	$	3,941

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 MBS based on the payment patterns of the underlying collateral.

Following is information relating to investment securities pledged:

TABLE 3.4


December 31	2025			2024
(dollars in millions)
Securities pledged (carrying value):
To secure public deposits, trust deposits and for other purposes as required by law	$	6,445		$	6,271
As collateral for short-term borrowings	140			182
Securities pledged as a percent of total securities	84.0		%	86.7		%

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 3.5


	Less than 12 Months					12 Months or More					Total
(dollars in millions)	#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses
Debt Securities AFS
December 31, 2025

U.S. government agencies	5	$	8	$	—	12	$	20	$	—	17	$	28	$	—
U.S. GSE	2	65		—		3	51		—		5	116		—
Residential MBS:
Agency MBS	1	46		—		90	251		(8)		91	297		(8)
Agency CMO	—	—		—		64	601		(61)		64	601		(61)

Agency commercial MBS	4	132		(1)		22	371		(14)		26	503		(15)
States of the U.S. and political subdivisions (municipals)	—	—		—		9	19		(1)		9	19		(1)
Other debt securities	—	—		—		3	9		—		3	9		—
Total	12	$	251	$	(1)	203	$	1,322	$	(84)	215	$	1,573	$	(85)

	Less than 12 Months					12 Months or More					Total
(dollars in millions)	#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses		#	Fair Value		Unrealized Losses
Debt Securities AFS
December 31, 2024
U.S. Treasury	3	$	74	$	(1)	2	$	75	$	—	5	$	149	$	(1)
U.S. government agencies	6	11		—		12	25		—		18	36		—
U.S. GSE	2	75		—		7	126		(2)		9	201		(2)
Residential MBS:
Agency MBS	9	235		(1)		92	355		(19)		101	590		(20)
Agency CMO	—	—		—		66	698		(98)		66	698		(98)

Agency commercial MBS	23	709		(8)		20	359		(27)		43	1,068		(35)
States of the U.S. and political subdivisions (municipals)	—	—		—		10	22		(2)		10	22		(2)
Other debt securities	—	—		—		4	10		—		4	10		—
Total	43	$	1,104	$	(10)	213	$	1,670	$	(148)	256	$	2,774	$	(158)

We evaluated the AFS debt securities that were in an unrealized loss position at December 31, 2025. Based on the credit ratings and/or implied government guarantee for these securities, we concluded the loss position is temporary and caused by significant movements of interest rates 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 investment 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 December 31, 2025 is highly rated with an average rating of AA and 97% of the portfolio is rated A or better. All of the investment securities in the municipal portfolio are general

obligation bonds. Geographically, municipal bonds generally support our primary footprint as 59% 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.

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. Municipal Bond Default and Recovery Rates, 1970-2024.

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 $74.0 million as of December 31, 2025 consists of debentures of banks and bank holding companies. The average holding size of the securities in the corporate bond portfolio is $3.9 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, 02/28/2025; and

•The 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 FNBPA's loan portfolio as a proxy for our corporate bond portfolio.

For the years ending December 31, 2025 and 2024, we had no significant provision expense and no charge-offs or recoveries for the investment securities portfolio. The ACL on the HTM portfolio was $0.29 million, consisting of $0.06 million relating to the municipal bond portfolio and $0.23 million relating to other debt securities, as of December 31, 2025, and $0.07 million relating to the municipal bond portfolio and $0.18 million relating to other debt securities as of December 31, 2024. The AFS securities portfolios did not have an ACL at December 31, 2025 or 2024. At December 31, 2025 and 2024, there were no investment securities that were past due or on non-accrual at either date.