DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts and Gross Fair Values of Derivative Assets and Derivative Liabilities

The following table presents notional amounts and gross fair values of our derivative assets and derivative liabilities which are not offset in the Consolidated Balance Sheets:

TABLE 10.1


	June 30, 2025						December 31, 2024
	Notional		Fair Value				Notional		Fair Value
(in millions)	Amount		Assets		Liabilities		Amount		Assets		Liabilities
Gross Derivatives
Subject to master netting arrangements:
Interest rate contracts – designated	$	2,150	$	13	$	—	$	2,400	$	—	$	6
Interest rate swaps – not designated	6,105		56		53		5,901		96		16

Total subject to master netting arrangements	8,255		69		53		8,301		96		22
Not subject to master netting arrangements:
Interest rate swaps – not designated	6,105		53		182		5,901		16		287
Interest rate lock commitments – not designated	473		5		—		417		1		4
Forward delivery commitments – not designated	477		—		5		486		4		—
Credit risk contracts – not designated	763		—		—		819		—		—

Total not subject to master netting arrangements	7,818		58		187		7,623		21		291
Total	$	16,073	$	127	$	240	$	15,924	$	117	$	313

Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (AOCI)

The following table shows amounts reclassified from AOCI:

TABLE 10.2


	Amount of Gain (Loss) Recognized in OCI on Derivatives				Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
	Six Months Ended June 30,					Six Months Ended June 30,
(in millions)	2025		2024			2025		2024
Derivatives in cash flow hedging relationships:
Interest rate contracts	$	16	$	(15)	Interest income (expense)	$	(15)	$	(19)

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table represents gains (losses) recognized in the Consolidated Statements of Income on cash flow hedging relationships:

TABLE 10.3


	Six months ended June 30,
	2025				2024
(in millions)	Interest Income - Loans and Leases		Interest Expense - Short-Term Borrowings		Interest Income - Loans and Leases		Interest Expense - Short-Term Borrowings
Total amounts of income and expense line items presented in the Consolidated Statements of Income (the effects of cash flow hedges are included in these line items)	$	981	$	34	$	975	$	60
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships:
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into net income	(15)		—		(25)		6

Schedule of Derivative Financial Instruments on the Consolidated Statements of Income

The following table presents the effect of certain derivative financial instruments on the Consolidated Statements of Income:

TABLE 10.4


		Six Months Ended June 30,
(in millions)	Consolidated Statements of Income Location	2025		2024
Interest rate swaps	Non-interest income - other	$	—	$	—
Interest rate lock commitments	Mortgage banking operations	—		—
Forward delivery contracts	Mortgage banking operations	(8)		4
Credit risk contracts	Non-interest income - other	—		—

Schedule of Offsetting Assets

The following table presents a reconciliation of the net amounts of derivative assets and derivative liabilities presented in the Consolidated Balance Sheets to the net amounts that would result in the event of offset: Swap derivative transactions with customers are generally secured by rights to non-financial collateral, such as real and personal property, which is not shown in the table below.

TABLE 10.5


							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in millions)	Gross Amount Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amount Presented in the Consolidated Balance Sheets		Financial Instruments Available for Offset		Collateral Received/Pledged		Net Amount
June 30, 2025
Derivative Assets
Subject to master netting arrangement	$	69	$	—	$	69	$	47	$	20	$	2
Not subject to master netting arrangement	53		—		53
Total	$	122	$	—	$	122


Derivative Liabilities
Subject to master netting arrangement	$	53	$	—	$	53	$	47	$	6	$	—
Not subject to master netting arrangement	182		—		182
Total	$	235	$	—	$	235


December 31, 2024
Derivative Assets
Subject to master netting arrangement	$	96	$	—	$	96	$	16	$	80	$	—
Not subject to master netting arrangement	16		—		16
Total	$	112	$	—	$	112


Derivative Liabilities
Subject to master netting arrangement	$	22	$	—	$	22	$	16	$	6	$	—
Not subject to master netting arrangement	287		—		287
Total	$	309	$	—	$	309

Schedule of Offsetting Liabilities

TABLE 10.5


							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in millions)	Gross Amount Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amount Presented in the Consolidated Balance Sheets		Financial Instruments Available for Offset		Collateral Received/Pledged		Net Amount
June 30, 2025
Derivative Assets
Subject to master netting arrangement	$	69	$	—	$	69	$	47	$	20	$	2
Not subject to master netting arrangement	53		—		53
Total	$	122	$	—	$	122


Derivative Liabilities
Subject to master netting arrangement	$	53	$	—	$	53	$	47	$	6	$	—
Not subject to master netting arrangement	182		—		182
Total	$	235	$	—	$	235


December 31, 2024
Derivative Assets
Subject to master netting arrangement	$	96	$	—	$	96	$	16	$	80	$	—
Not subject to master netting arrangement	16		—		16
Total	$	112	$	—	$	112


Derivative Liabilities
Subject to master netting arrangement	$	22	$	—	$	22	$	16	$	6	$	—
Not subject to master netting arrangement	287		—		287
Total	$	309	$	—	$	309

FNB CORP/PA/ 10-Q