FNB CORP/PA/FNB

FNB CORP/PA/ Leases Disclosure

10-KFiled Feb 24, 20263 min read
LEASES
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 December 31, 2025, we had operating lease right-of-use assets and operating lease liabilities of $195.2 million and $236.3 million, respectively, including $70.6 million in operating right-of-use assets and $101.2 million in operating lease liabilities with a related party. As of December 31, 2025, we had finance lease right-of-use assets and finance lease liabilities of $32.4 million and $35.5 million, respectively.
Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of December 31, 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 $5.8 million in right-of-use assets and $5.8 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 10.1
Twelve Months Ended
December 31,
(in millions)202520242023
Operating lease cost$40 $41 $34 
Short-term lease cost1 1 — 
Variable lease cost6 5 5 
Finance lease cost4 3 3 
Total lease cost$51 $50 $42 
Other information related to leases is as follows:
TABLE 10.2
Twelve Months Ended
December 31,
(dollars in millions)20252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$38 $34 
Operating cash flows from finance leases$1 $1 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$19 $27 
Finance leases$— $10 
Weighted average remaining lease term (years):
Operating leases1011
Finance leases1718
Weighted average discount rate:
Operating leases4.0 %3.9 %
Finance leases3.6 %3.5 %
Future cash flows of lease liabilities are as follows:
TABLE 10.3
(in millions)Operating LeasesFinance LeasesTotal Leases
December 31, 2025
0 - 12 months$36 $2 $38 
13 - 24 months33 3 36 
25 - 36 months29 3 32 
37 - 48 months27 3 30 
49 - 60 months25 3 28 
Later years144 34 178 
Total lease payments294 48 342 
Less: imputed interest(58)(12)(70)
Present value of lease liabilities$236 $36 $272 
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 5, “Loans and Leases” in the Notes to Consolidated Financial Statements.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 27, 2025
2023Feb 26, 2024
2022Feb 24, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 27, 2020
2018Feb 26, 2019
2017Feb 28, 2018
2015Feb 26, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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