Key Financial Data | Key Highlights | |||||||||||||||||||||||||
$ millions for all balance sheet and income statement items | ||||||||||||||||||||||||||
3Q21 | 2Q21 | 3Q20 | Select Business Highlights: •Closed acquisition of Provide, a leading fintech company serving healthcare practices •Finalized HSA deposit sale, generating a pre-tax gain of $60 million (noninterest income) •Made $15 million pre-tax contribution to accelerate racial equality, equity and inclusion in our communities •Generated consumer household growth of 3% vs. 3Q20 •Commercial loan production increased 5% compared to 2Q21; strongest production quarter since 4Q19 Select Financial Highlights: •ROTCE(a) of 16.9%; adjusted ROTCE(a) of 18.7% excl. AOCI •PPNR(a) increased 17% and adjusted PPNR(a) increased 4% compared to 3Q20 •Period-end C&I loan growth of 1% (or 4% excl. impact of PPP loans) compared to 2Q21 •Historically low NCO ratio of 0.08% reflecting improvements in both commercial and consumer •Repurchased shares totaling $550 million; capital plans support repurchase of shares totaling approximately $300 million in 4Q21; continue to target 9.5% CET1 by June 2022 | |||||||||||||||||||||||
Income Statement Data | ||||||||||||||||||||||||||
Net income available to common shareholders | $684 | $674 | $562 | |||||||||||||||||||||||
Net interest income (U.S. GAAP) | 1,189 | 1,208 | 1,170 | |||||||||||||||||||||||
Net interest income (FTE)(a) | 1,192 | 1,211 | 1,173 | |||||||||||||||||||||||
Noninterest income | 836 | 741 | 722 | |||||||||||||||||||||||
Noninterest expense | 1,172 | 1,153 | 1,161 | |||||||||||||||||||||||
Per Share Data | ||||||||||||||||||||||||||
Earnings per share, basic | $0.98 | $0.95 | $0.78 | |||||||||||||||||||||||
Earnings per share, diluted | 0.97 | 0.94 | 0.78 | |||||||||||||||||||||||
Book value per share | 29.59 | 29.57 | 29.25 | |||||||||||||||||||||||
Tangible book value per share(a) | 22.79 | 23.34 | 23.06 | |||||||||||||||||||||||
Balance Sheet & Credit Quality | ||||||||||||||||||||||||||
Average portfolio loans and leases | $107,970 | $108,534 | $113,362 | |||||||||||||||||||||||
Average deposits | 162,647 | 162,619 | 155,911 | |||||||||||||||||||||||
Net charge-off ratio(b) | 0.08 | % | 0.16 | % | 0.35 | % | ||||||||||||||||||||
Nonperforming asset ratio(c) | 0.52 | 0.61 | 0.84 | |||||||||||||||||||||||
Financial Ratios | ||||||||||||||||||||||||||
Return on average assets | 1.36 | % | 1.38 | % | 1.14 | % | ||||||||||||||||||||
Return on average common equity | 13.0 | 13.0 | 10.7 | |||||||||||||||||||||||
Return on average tangible common equity(a) | 16.9 | 16.6 | 13.8 | |||||||||||||||||||||||
CET1 capital(d)(e) | 9.85 | 10.37 | 10.14 | |||||||||||||||||||||||
Net interest margin(a) | 2.59 | 2.63 | 2.58 | |||||||||||||||||||||||
Efficiency(a) | 57.8 | 59.1 | 61.3 | |||||||||||||||||||||||
Other than the Quarterly Financial Review tables beginning on page 14, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Industry Guide 3 that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis. | ||||||||||||||||||||||||||
CEO Commentary |
Income Statement Highlights | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except per share data) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
September | June | September | ||||||||||||||||||||||||||||||||||||||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Condensed Statements of Income | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income (NII)(a) | $1,192 | $1,211 | $1,173 | (2)% | 2% | |||||||||||||||||||||||||||||||||||||||
Benefit from credit losses | (42) | (115) | (15) | (63)% | 180% | |||||||||||||||||||||||||||||||||||||||
Noninterest income | 836 | 741 | 722 | 13% | 16% | |||||||||||||||||||||||||||||||||||||||
Noninterest expense | 1,172 | 1,153 | 1,161 | 2% | 1% | |||||||||||||||||||||||||||||||||||||||
Income before income taxes(a) | $898 | $914 | $749 | (2)% | 20% | |||||||||||||||||||||||||||||||||||||||
Taxable equivalent adjustment | $3 | $3 | $3 | — | — | |||||||||||||||||||||||||||||||||||||||
Applicable income tax expense | 191 | 202 | 165 | (5)% | 16% | |||||||||||||||||||||||||||||||||||||||
Net income | $704 | $709 | $581 | (1)% | 21% | |||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | 20 | 35 | 19 | (43)% | 5% | |||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders | $684 | $674 | $562 | 1% | 22% | |||||||||||||||||||||||||||||||||||||||
Earnings per share, diluted | $0.97 | $0.94 | $0.78 | 3% | 24% | |||||||||||||||||||||||||||||||||||||||
Diluted earnings per share impact of certain items - 3Q21 | |||||||||||||||||
(after-tax impacts(f); $ in millions, except per share data) | |||||||||||||||||
Valuation of Visa total return swap (noninterest income) | $(13) | ||||||||||||||||
Fifth Third Foundation contribution expense | (12) | ||||||||||||||||
HSA disposition gain (noninterest income) | 46 | ||||||||||||||||
After-tax impact(f) of certain items | $21 | ||||||||||||||||
Diluted earnings per share impact of certain items1 | $0.03 | ||||||||||||||||
1Diluted earnings per share impact reflects 706.090 million average diluted shares outstanding | |||||||||||||||||
Net Interest Income | ||||||||||||||||||||||||||||||||||||||||||||
(FTE; $ in millions)(a) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
September | June | September | ||||||||||||||||||||||||||||||||||||||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | $1,295 | $1,326 | $1,332 | (2)% | (3)% | |||||||||||||||||||||||||||||||||||||||
Interest expense | 103 | 115 | 159 | (10)% | (35)% | |||||||||||||||||||||||||||||||||||||||
Net interest income (NII) | $1,192 | $1,211 | $1,173 | (2)% | 2% | |||||||||||||||||||||||||||||||||||||||
Average Yield/Rate Analysis | bps Change | |||||||||||||||||||||||||||||||||||||||||||
Yield on interest-earning assets | 2.81 | % | 2.88 | % | 2.93 | % | (7) | (12) | ||||||||||||||||||||||||||||||||||||
Rate paid on interest-bearing liabilities | 0.36 | % | 0.40 | % | 0.51 | % | (4) | (15) | ||||||||||||||||||||||||||||||||||||
Ratios | ||||||||||||||||||||||||||||||||||||||||||||
Net interest rate spread | 2.45 | % | 2.48 | % | 2.42 | % | (3) | 3 | ||||||||||||||||||||||||||||||||||||
Net interest margin (NIM) | 2.59 | % | 2.63 | % | 2.58 | % | (4) | 1 | ||||||||||||||||||||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | |||||||||||||||||||||||||||||||||
September | June | September | |||||||||||||||||||||||||||||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | |||||||||||||||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||||||||||||||
Service charges on deposits | $152 | $149 | $144 | 2% | 6% | ||||||||||||||||||||||||||||||
Commercial banking revenue | 152 | 160 | 125 | (5)% | 22% | ||||||||||||||||||||||||||||||
Mortgage banking net revenue | 86 | 64 | 76 | 34% | 13% | ||||||||||||||||||||||||||||||
Wealth and asset management revenue | 147 | 145 | 132 | 1% | 11% | ||||||||||||||||||||||||||||||
Card and processing revenue | 102 | 102 | 92 | — | 11% | ||||||||||||||||||||||||||||||
Leasing business revenue | 78 | 61 | 77 | 28% | 1% | ||||||||||||||||||||||||||||||
Other noninterest income | 120 | 49 | 26 | 145% | 362% | ||||||||||||||||||||||||||||||
Securities (losses) gains, net | (1) | 10 | 51 | NM | NM | ||||||||||||||||||||||||||||||
Securities (losses) gains, net - non-qualifying hedges | |||||||||||||||||||||||||||||||||||
on mortgage servicing rights | — | 1 | (1) | (100)% | (100)% | ||||||||||||||||||||||||||||||
Total noninterest income | $836 | $741 | $722 | 13% | 16% | ||||||||||||||||||||||||||||||
Noninterest Income excluding certain items | |||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | ||||||||||||||||||||||||||||
September | June | September | |||||||||||||||||||||||||||
2021 | 2021 | 2020 | |||||||||||||||||||||||||||
Noninterest Income excluding certain items | |||||||||||||||||||||||||||||
Noninterest income (U.S. GAAP) | $836 | $741 | $722 | ||||||||||||||||||||||||||
Valuation of Visa total return swap | 17 | 37 | 22 | ||||||||||||||||||||||||||
HSA disposition gain | (60) | — | — | ||||||||||||||||||||||||||
Branch and non-branch real estate charges | — | — | 10 | ||||||||||||||||||||||||||
Securities losses/(gains), net | 1 | (10) | (51) | ||||||||||||||||||||||||||
Noninterest income excluding certain items(a) | $794 | $768 | $703 | ||||||||||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
September | June | September | ||||||||||||||||||||||||||||||||||||||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | $627 | $638 | $637 | (2)% | (2)% | |||||||||||||||||||||||||||||||||||||||
Net occupancy expense | 79 | 77 | 90 | 3% | (12)% | |||||||||||||||||||||||||||||||||||||||
Technology and communications | 98 | 94 | 89 | 4% | 10% | |||||||||||||||||||||||||||||||||||||||
Equipment expense | 34 | 34 | 33 | — | 3% | |||||||||||||||||||||||||||||||||||||||
Card and processing expense | 19 | 20 | 29 | (5)% | (34)% | |||||||||||||||||||||||||||||||||||||||
Leasing business expense | 33 | 33 | 35 | — | (6)% | |||||||||||||||||||||||||||||||||||||||
Marketing expense | 29 | 20 | 23 | 45% | 26% | |||||||||||||||||||||||||||||||||||||||
Other noninterest expense | 253 | 237 | 225 | 7% | 12% | |||||||||||||||||||||||||||||||||||||||
Total noninterest expense | $1,172 | $1,153 | $1,161 | 2% | 1% | |||||||||||||||||||||||||||||||||||||||
Noninterest Expense excluding certain items | |||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | ||||||||||||||||||||||||||||
September | June | September | |||||||||||||||||||||||||||
2021 | 2021 | 2020 | |||||||||||||||||||||||||||
Noninterest Expense excluding certain items | |||||||||||||||||||||||||||||
Noninterest expense (U.S. GAAP) | $1,172 | $1,153 | $1,161 | ||||||||||||||||||||||||||
Fifth Third Foundation contribution | (15) | — | — | ||||||||||||||||||||||||||
Restructuring severance expense | — | — | (19) | ||||||||||||||||||||||||||
Branch and non-branch real estate charges | — | — | (9) | ||||||||||||||||||||||||||
Noninterest expense excluding certain items(a) | $1,157 | $1,153 | $1,133 |
Average Interest-Earning Assets | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
September | June | September | ||||||||||||||||||||||||||||||||||||||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Average Portfolio Loans and Leases | ||||||||||||||||||||||||||||||||||||||||||||
Commercial loans and leases: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans | $47,766 | $48,773 | $54,004 | (2)% | (12)% | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | 10,317 | 10,459 | 11,069 | (1)% | (7)% | |||||||||||||||||||||||||||||||||||||||
Commercial construction loans | 5,728 | 6,043 | 5,534 | (5)% | 4% | |||||||||||||||||||||||||||||||||||||||
Commercial leases | 3,158 | 3,174 | 2,966 | (1)% | 6% | |||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases | $66,969 | $68,449 | $73,573 | (2)% | (9)% | |||||||||||||||||||||||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | $16,223 | $15,883 | $16,618 | 2% | (2)% | |||||||||||||||||||||||||||||||||||||||
Home equity | 4,409 | 4,674 | 5,581 | (6)% | (21)% | |||||||||||||||||||||||||||||||||||||||
Indirect secured consumer loans | 15,590 | 14,702 | 12,599 | 6% | 24% | |||||||||||||||||||||||||||||||||||||||
Credit card | 1,748 | 1,770 | 2,134 | (1)% | (18)% | |||||||||||||||||||||||||||||||||||||||
Other consumer loans | 3,031 | 3,056 | 2,857 | (1)% | 6% | |||||||||||||||||||||||||||||||||||||||
Total consumer loans | $41,001 | $40,085 | $39,789 | 2% | 3% | |||||||||||||||||||||||||||||||||||||||
Total average portfolio loans and leases | $107,970 | $108,534 | $113,362 | (1)% | (5)% | |||||||||||||||||||||||||||||||||||||||
Memo: | ||||||||||||||||||||||||||||||||||||||||||||
Average PPP loans | $3,071 | $4,810 | $5,216 | (36)% | (41)% | |||||||||||||||||||||||||||||||||||||||
Average portfolio commercial and industrial loans - excl. PPP loans | $44,695 | $43,963 | $48,788 | 2% | (8)% | |||||||||||||||||||||||||||||||||||||||
Average Loans and Leases Held for Sale | ||||||||||||||||||||||||||||||||||||||||||||
Commercial loans and leases held for sale | $31 | $52 | $55 | (40)% | (44)% | |||||||||||||||||||||||||||||||||||||||
Consumer loans held for sale | 5,527 | 5,857 | 1,196 | (6)% | 362% | |||||||||||||||||||||||||||||||||||||||
Total average loans and leases held for sale | $5,558 | $5,909 | $1,251 | (6)% | 344% | |||||||||||||||||||||||||||||||||||||||
Securities (taxable and tax-exempt) | $37,208 | $36,917 | $36,300 | 1% | 3% | |||||||||||||||||||||||||||||||||||||||
Other short-term investments | 32,065 | 33,558 | 29,791 | (4)% | 8% | |||||||||||||||||||||||||||||||||||||||
Total average interest-earning assets | $182,801 | $184,918 | $180,704 | (1)% | 1% | |||||||||||||||||||||||||||||||||||||||
Average Deposits | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
September | June | September | ||||||||||||||||||||||||||||||||||||||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Average Deposits | ||||||||||||||||||||||||||||||||||||||||||||
Demand | $62,626 | $61,994 | $50,414 | 1% | 24% | |||||||||||||||||||||||||||||||||||||||
Interest checking | 45,128 | 45,307 | 49,800 | — | (9)% | |||||||||||||||||||||||||||||||||||||||
Savings | 20,941 | 20,494 | 17,013 | 2% | 23% | |||||||||||||||||||||||||||||||||||||||
Money market | 30,514 | 30,844 | 31,151 | (1)% | (2)% | |||||||||||||||||||||||||||||||||||||||
Foreign office(h) | 195 | 140 | 189 | 39% | 3% | |||||||||||||||||||||||||||||||||||||||
Total transaction deposits | $159,404 | $158,779 | $148,567 | — | 7% | |||||||||||||||||||||||||||||||||||||||
Other time | 2,383 | 2,696 | 3,711 | (12)% | (36)% | |||||||||||||||||||||||||||||||||||||||
Total core deposits | $161,787 | $161,475 | $152,278 | — | 6% | |||||||||||||||||||||||||||||||||||||||
Certificates - $100,000 and over | 860 | 1,144 | 3,633 | (25)% | (76)% | |||||||||||||||||||||||||||||||||||||||
Total average deposits | $162,647 | $162,619 | $155,911 | — | 4% | |||||||||||||||||||||||||||||||||||||||
Average Wholesale Funding | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
September | June | September | ||||||||||||||||||||||||||||||||||||||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Average Wholesale Funding | ||||||||||||||||||||||||||||||||||||||||||||
Certificates - $100,000 and over | $860 | $1,144 | $3,633 | (25)% | (76)% | |||||||||||||||||||||||||||||||||||||||
Federal funds purchased | 348 | 346 | 273 | 1% | 27% | |||||||||||||||||||||||||||||||||||||||
Other short-term borrowings | 1,122 | 1,097 | 1,626 | 2% | (31)% | |||||||||||||||||||||||||||||||||||||||
Long-term debt | 12,057 | 13,883 | 16,230 | (13)% | (26)% | |||||||||||||||||||||||||||||||||||||||
Total average wholesale funding | $14,387 | $16,470 | $21,762 | (13)% | (34)% | |||||||||||||||||||||||||||||||||||||||
Credit Quality Summary | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | As of and For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
September | June | March | December | September | ||||||||||||||||||||||||||||||||||||||||
2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||||||||||||||||||||||||||||
Total nonaccrual portfolio loans and leases (NPLs) | $528 | $621 | $741 | $834 | $891 | |||||||||||||||||||||||||||||||||||||||
Repossessed property | 4 | 5 | 7 | 9 | 7 | |||||||||||||||||||||||||||||||||||||||
OREO | 27 | 31 | 35 | 21 | 33 | |||||||||||||||||||||||||||||||||||||||
Total nonperforming portfolio loans and leases and OREO (NPAs) | $559 | $657 | $783 | $864 | $931 | |||||||||||||||||||||||||||||||||||||||
NPL ratio(i) | 0.49 | % | 0.58 | % | 0.68 | % | 0.77 | % | 0.80 | % | ||||||||||||||||||||||||||||||||||
NPA ratio(c) | 0.52 | % | 0.61 | % | 0.72 | % | 0.79 | % | 0.84 | % | ||||||||||||||||||||||||||||||||||
Total loans and leases 30-89 days past due (accrual) | $267 | $281 | $305 | $357 | $323 | |||||||||||||||||||||||||||||||||||||||
Total loans and leases 90 days past due (accrual) | 92 | 83 | 124 | 163 | 139 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses (ALLL), beginning | $2,033 | $2,208 | $2,453 | $2,574 | $2,696 | |||||||||||||||||||||||||||||||||||||||
Total net losses charged-off | (21) | (44) | (71) | (118) | (101) | |||||||||||||||||||||||||||||||||||||||
Benefit from loan and lease losses | (58) | (131) | (174) | (3) | (21) | |||||||||||||||||||||||||||||||||||||||
ALLL, ending | $1,954 | $2,033 | $2,208 | $2,453 | $2,574 | |||||||||||||||||||||||||||||||||||||||
Reserve for unfunded commitments, beginning | $189 | $173 | $172 | $182 | $176 | |||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) the reserve for unfunded commitments | 16 | 16 | 1 | (10) | 6 | |||||||||||||||||||||||||||||||||||||||
Reserve for unfunded commitments, ending | $205 | $189 | $173 | $172 | $182 | |||||||||||||||||||||||||||||||||||||||
Total allowance for credit losses (ACL) | $2,159 | $2,222 | $2,381 | $2,625 | $2,756 | |||||||||||||||||||||||||||||||||||||||
ACL ratios: | ||||||||||||||||||||||||||||||||||||||||||||
As a % of portfolio loans and leases | 2.00 | % | 2.06 | % | 2.19 | % | 2.41 | % | 2.49 | % | ||||||||||||||||||||||||||||||||||
As a % of nonperforming portfolio loans and leases | 409 | % | 358 | % | 321 | % | 315 | % | 309 | % | ||||||||||||||||||||||||||||||||||
As a % of nonperforming portfolio assets | 386 | % | 338 | % | 304 | % | 304 | % | 296 | % | ||||||||||||||||||||||||||||||||||
ALLL as a % of portfolio loans and leases | 1.81 | % | 1.89 | % | 2.03 | % | 2.25 | % | 2.32 | % | ||||||||||||||||||||||||||||||||||
Total losses charged-off | $(56) | $(103) | $(109) | $(154) | $(135) | |||||||||||||||||||||||||||||||||||||||
Total recoveries of losses previously charged-off | 35 | 59 | 38 | 36 | 34 | |||||||||||||||||||||||||||||||||||||||
Total net losses charged-off | $(21) | $(44) | $(71) | $(118) | $(101) | |||||||||||||||||||||||||||||||||||||||
Net charge-off ratio (NCO ratio)(b) | 0.08 | % | 0.16 | % | 0.27 | % | 0.43 | % | 0.35 | % | ||||||||||||||||||||||||||||||||||
Commercial NCO ratio | 0.03 | % | 0.10 | % | 0.17 | % | 0.40 | % | 0.33 | % | ||||||||||||||||||||||||||||||||||
Consumer NCO ratio | 0.16 | % | 0.26 | % | 0.43 | % | 0.47 | % | 0.40 | % | ||||||||||||||||||||||||||||||||||
Capital Position | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of and For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
September | June | March | December | September | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Capital Position | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average total Bancorp shareholders' equity as a % of average assets | 11.16 | % | 11.11 | % | 11.26% | 11.34% | 11.33 | % | ||||||||||||||||||||||||||||||||||||||||||
Tangible equity(a) | 8.06 | % | 8.35 | % | 8.20% | 8.18% | 8.09 | % | ||||||||||||||||||||||||||||||||||||||||||
Tangible common equity (excluding AOCI)(a) | 7.01 | % | 7.28 | % | 7.14% | 7.11% | 6.99 | % | ||||||||||||||||||||||||||||||||||||||||||
Tangible common equity (including AOCI)(a) | 7.74 | % | 8.18 | % | 7.95% | 8.29% | 8.31 | % | ||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Ratios(d)(e) | ||||||||||||||||||||||||||||||||||||||||||||||||||
CET1 capital | 9.85 | % | 10.37 | % | 10.46% | 10.34% | 10.14 | % | ||||||||||||||||||||||||||||||||||||||||||
Tier I risk-based capital | 11.27 | % | 11.83 | % | 11.94% | 11.83% | 11.64 | % | ||||||||||||||||||||||||||||||||||||||||||
Total risk-based capital | 13.92 | % | 14.60 | % | 14.80% | 15.08% | 14.93 | % | ||||||||||||||||||||||||||||||||||||||||||
Tier I leverage | 8.35 | % | 8.55 | % | 8.61% | 8.49% | 8.37 | % | ||||||||||||||||||||||||||||||||||||||||||
Financial Highlights | 14-15 | ||||||||||
Consolidated Statements of Income | 16-17 | ||||||||||
Consolidated Balance Sheets | 18-19 | ||||||||||
Consolidated Statements of Changes in Equity | 20 | ||||||||||
Average Balance Sheet and Yield Analysis | 21-22 | ||||||||||
Summary of Loans and Leases | 23 | ||||||||||
Regulatory Capital | 24 | ||||||||||
Summary of Credit Loss Experience | 25 | ||||||||||
Asset Quality | 26 | ||||||||||
Non-GAAP Reconciliation | 27-29 | ||||||||||
Segment Presentation | 30 | ||||||||||
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||||||||||||||
Financial Highlights | % / bps | % / bps | |||||||||||||||||||||||||||
$ in millions, except per share data | For the Three Months Ended | Change | Year to Date | Change | |||||||||||||||||||||||||
(unaudited) | September | June | September | September | September | ||||||||||||||||||||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | 2021 | 2020 | Yr/Yr | ||||||||||||||||||||||
Income Statement Data | |||||||||||||||||||||||||||||
Net interest income | $1,189 | $1,208 | $1,170 | (2%) | 2% | $3,574 | $3,600 | (1%) | |||||||||||||||||||||
Net interest income (FTE)(a) | 1,192 | 1,211 | 1,173 | (2%) | 2% | 3,583 | 3,610 | (1%) | |||||||||||||||||||||
Noninterest income | 836 | 741 | 722 | 13% | 16% | 2,326 | 2,043 | 14% | |||||||||||||||||||||
Total revenue (FTE)(a) | 2,028 | 1,952 | 1,895 | 4% | 7% | 5,909 | 5,653 | 5% | |||||||||||||||||||||
(Benefit from) provision for credit losses | (42) | (115) | (15) | (63%) | 180% | (330) | 1,110 | NM | |||||||||||||||||||||
Noninterest expense | 1,172 | 1,153 | 1,161 | 2% | 1% | 3,541 | 3,482 | 2% | |||||||||||||||||||||
Net income | 704 | 709 | 581 | (1%) | 21% | 2,107 | 823 | 156% | |||||||||||||||||||||
Net income available to common shareholders | 684 | 674 | 562 | 1% | 22% | 2,032 | 754 | 169% | |||||||||||||||||||||
Earnings Per Share Data | |||||||||||||||||||||||||||||
Net income allocated to common shareholders | $683 | $673 | $560 | 1% | 22% | $2,027 | $751 | 170% | |||||||||||||||||||||
Average common shares outstanding (in thousands): | |||||||||||||||||||||||||||||
Basic | 697,457 | 708,833 | 715,102 | (2%) | (2%) | 706,846 | 714,477 | (1%) | |||||||||||||||||||||
Diluted | 706,090 | 718,085 | 718,894 | (2%) | (2%) | 715,803 | 718,943 | — | |||||||||||||||||||||
Earnings per share, basic | $0.98 | $0.95 | $0.78 | 3% | 26% | $2.87 | $1.05 | 173% | |||||||||||||||||||||
Earnings per share, diluted | 0.97 | 0.94 | 0.78 | 3% | 24% | 2.83 | 1.04 | 172% | |||||||||||||||||||||
Common Share Data | |||||||||||||||||||||||||||||
Cash dividends per common share | $0.30 | $0.27 | $0.27 | 11% | 11% | $0.84 | $0.81 | 4% | |||||||||||||||||||||
Book value per share | 29.59 | 29.57 | 29.25 | — | 1% | 29.59 | 29.25 | 1% | |||||||||||||||||||||
Market value per share | 42.44 | 38.23 | 21.32 | 11% | 99% | 42.44 | 21.32 | 99% | |||||||||||||||||||||
Common shares outstanding (in thousands) | 689,790 | 703,740 | 712,328 | (2%) | (3%) | 689,790 | 712,328 | (3%) | |||||||||||||||||||||
Market capitalization | $29,275 | $26,904 | $15,187 | 9% | 93% | $29,275 | $15,187 | 93% | |||||||||||||||||||||
Financial Ratios | |||||||||||||||||||||||||||||
Return on average assets | 1.36 | % | 1.38 | % | 1.14 | % | (2) | 22 | 1.37 | % | 0.58 | % | 79 | ||||||||||||||||
Return on average common equity | 13.0 | % | 13.0 | % | 10.7 | % | — | 230 | 13.1 | % | 4.9 | % | 820 | ||||||||||||||||
Return on average tangible common equity(a) | 16.9 | % | 16.6 | % | 13.8 | % | 30 | 310 | 16.8 | % | 6.5 | % | NM | ||||||||||||||||
Noninterest income as a percent of total revenue(a) | 41 | % | 38 | % | 38 | % | 300 | 300 | 39 | % | 36 | % | 300 | ||||||||||||||||
Dividend payout | 30.6 | % | 28.4 | % | 34.6 | % | 220 | (620) | 29.3 | % | 77.1 | % | NM | ||||||||||||||||
Average total Bancorp shareholders' equity as a percent of average assets | 11.16 | % | 11.11 | % | 11.33 | % | 5 | (17) | 11.18 | % | 11.71 | % | (53) | ||||||||||||||||
Tangible common equity(a) | 7.01 | % | 7.28 | % | 6.99 | % | (27) | 2 | 7.01 | % | 6.99 | % | 2 | ||||||||||||||||
Net interest margin (FTE)(a) | 2.59 | % | 2.63 | % | 2.58 | % | (4) | 1 | 2.61 | % | 2.85 | % | (24) | ||||||||||||||||
Efficiency (FTE)(a) | 57.8 | % | 59.1 | % | 61.3 | % | (130) | (350) | 59.9 | % | 61.6 | % | (170) | ||||||||||||||||
Effective tax rate | 21.3 | % | 22.1 | % | 22.1 | % | (80) | (80) | 21.6 | % | 21.6 | % | — | ||||||||||||||||
Credit Quality | |||||||||||||||||||||||||||||
Net losses charged-off | $21 | $44 | $101 | (52 | %) | (79 | %) | $136 | $353 | (61 | %) | ||||||||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.08 | % | 0.16 | % | 0.35 | % | (8) | (27) | 0.17 | % | 0.41 | % | (24) | ||||||||||||||||
ALLL as a percent of portfolio loans and leases | 1.81 | % | 1.89 | % | 2.32 | % | (8) | (51) | 1.81 | % | 2.32 | % | (51) | ||||||||||||||||
ACL as a percent of portfolio loans and leases(g) | 2.00 | % | 2.06 | % | 2.49 | % | (6) | (49) | 2.00 | % | 2.49 | % | (49) | ||||||||||||||||
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO | 0.52 | % | 0.61 | % | 0.84 | % | (9) | (32) | 0.52 | % | 0.84 | % | (32) | ||||||||||||||||
Average Balances | |||||||||||||||||||||||||||||
Loans and leases, including held for sale | $113,528 | $114,443 | $114,613 | (1%) | (1%) | $113,890 | $115,401 | (1%) | |||||||||||||||||||||
Securities and other short-term investments | 69,273 | 70,475 | 66,091 | (2%) | 5% | 69,589 | 54,021 | 29% | |||||||||||||||||||||
Assets | 205,449 | 206,353 | 202,533 | — | 1% | 205,219 | 190,973 | 7% | |||||||||||||||||||||
Transaction deposits(b) | 159,404 | 158,779 | 148,567 | — | 7% | 157,361 | 136,293 | 15% | |||||||||||||||||||||
Core deposits(c) | 161,787 | 161,475 | 152,278 | — | 6% | 160,067 | 140,695 | 14% | |||||||||||||||||||||
Wholesale funding(d) | 14,387 | 16,470 | 21,762 | (13%) | (34%) | 16,400 | 22,441 | (27%) | |||||||||||||||||||||
Bancorp shareholders' equity | 22,927 | 22,927 | 22,952 | — | — | 22,935 | 22,364 | 3% | |||||||||||||||||||||
Regulatory Capital Ratios(e)(f) | |||||||||||||||||||||||||||||
CET1 capital | 9.85 | % | 10.37 | % | 10.14 | % | (52) | (29) | 9.85 | % | 10.14 | % | (29) | ||||||||||||||||
Tier I risk-based capital | 11.27 | % | 11.83 | % | 11.64 | % | (56) | (37) | 11.27 | % | 11.64 | % | (37) | ||||||||||||||||
Total risk-based capital | 13.92 | % | 14.60 | % | 14.93 | % | (68) | (101) | 13.92 | % | 14.93 | % | (101) | ||||||||||||||||
Tier I leverage | 8.35 | % | 8.55 | % | 8.37 | % | (20) | (2) | 8.35 | % | 8.37 | % | (2) | ||||||||||||||||
Operations | |||||||||||||||||||||||||||||
Banking centers | 1,100 | 1,096 | 1,122 | — | (2%) | 1,100 | 1,122 | (2%) | |||||||||||||||||||||
ATMs | 2,336 | 2,369 | 2,414 | (1%) | (3%) | 2,336 | 2,414 | (3%) | |||||||||||||||||||||
Full-time equivalent employees | 19,171 | 19,402 | 20,283 | (1%) | (5%) | 19,171 | 20,283 | (5%) |
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
$ in millions, except per share data | For the Three Months Ended | |||||||||||||||||||
(unaudited) | September | June | March | December | September | |||||||||||||||
2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||||
Income Statement Data | ||||||||||||||||||||
Net interest income | $1,189 | $1,208 | $1,176 | $1,182 | $1,170 | |||||||||||||||
Net interest income (FTE)(a) | 1,192 | 1,211 | 1,179 | 1,185 | 1,173 | |||||||||||||||
Noninterest income | 836 | 741 | 749 | 787 | 722 | |||||||||||||||
Total revenue (FTE)(a) | 2,028 | 1,952 | 1,928 | 1,972 | 1,895 | |||||||||||||||
Benefit from credit losses | (42) | (115) | (173) | (13) | (15) | |||||||||||||||
Noninterest expense | 1,172 | 1,153 | 1,215 | 1,236 | 1,161 | |||||||||||||||
Net income | 704 | 709 | 694 | 604 | 581 | |||||||||||||||
Net income available to common shareholders | 684 | 674 | 674 | 569 | 562 | |||||||||||||||
Earnings Per Share Data | ||||||||||||||||||||
Net income allocated to common shareholders | $683 | $673 | $672 | $567 | $560 | |||||||||||||||
Average common shares outstanding (in thousands): | ||||||||||||||||||||
Basic | 697,457 | 708,833 | 714,433 | 715,482 | 715,102 | |||||||||||||||
Diluted | 706,090 | 718,085 | 723,425 | 722,096 | 718,894 | |||||||||||||||
Earnings per share, basic | $0.98 | $0.95 | $0.94 | $0.79 | $0.78 | |||||||||||||||
Earnings per share, diluted | 0.97 | 0.94 | 0.93 | 0.78 | 0.78 | |||||||||||||||
Common Share Data | ||||||||||||||||||||
Cash dividends per common share | $0.30 | $0.27 | $0.27 | $0.27 | $0.27 | |||||||||||||||
Book value per share | 29.59 | 29.57 | 28.78 | 29.46 | 29.25 | |||||||||||||||
Market value per share | 42.44 | 38.23 | 37.45 | 27.57 | 21.32 | |||||||||||||||
Common shares outstanding (in thousands) | 689,790 | 703,740 | 711,596 | 712,760 | 712,328 | |||||||||||||||
Market capitalization | $29,275 | $26,904 | $26,649 | $19,651 | $15,187 | |||||||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.36 | % | 1.38 | % | 1.38 | % | 1.18 | % | 1.14 | % | ||||||||||
Return on average common equity | 13.0 | % | 13.0 | % | 13.1 | % | 10.8 | % | 10.7 | % | ||||||||||
Return on average tangible common equity(a) | 16.9 | % | 16.6 | % | 16.8 | % | 13.9 | % | 13.8 | % | ||||||||||
Noninterest income as a percent of total revenue(a) | 41 | % | 38 | % | 39 | % | 40 | % | 38 | % | ||||||||||
Dividend payout | 30.6 | % | 28.4 | % | 28.7 | % | 34.2 | % | 34.6 | % | ||||||||||
Average total Bancorp shareholders' equity as a percent of average assets | 11.16 | % | 11.11 | % | 11.26 | % | 11.34 | % | 11.33 | % | ||||||||||
Tangible common equity(a) | 7.01 | % | 7.28 | % | 7.14 | % | 7.11 | % | 6.99 | % | ||||||||||
Net interest margin (FTE)(a) | 2.59 | % | 2.63 | % | 2.62 | % | 2.58 | % | 2.58 | % | ||||||||||
Efficiency (FTE)(a) | 57.8 | % | 59.1 | % | 63.0 | % | 62.7 | % | 61.3 | % | ||||||||||
Effective tax rate | 21.3 | % | 22.1 | % | 21.4 | % | 19.1 | % | 22.1 | % | ||||||||||
Credit Quality | ||||||||||||||||||||
Net losses charged-off | $21 | $44 | $71 | $118 | $101 | |||||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.08 | % | 0.16 | % | 0.27 | % | 0.43 | % | 0.35 | % | ||||||||||
ALLL as a percent of portfolio loans and leases | 1.81 | % | 1.89 | % | 2.03 | % | 2.25 | % | 2.32 | % | ||||||||||
ACL as a percent of portfolio loans and leases(g) | 2.00 | % | 2.06 | % | 2.19 | % | 2.41 | % | 2.49 | % | ||||||||||
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO | 0.52 | % | 0.61 | % | 0.72 | % | 0.79 | % | 0.84 | % | ||||||||||
Average Balances | ||||||||||||||||||||
Loans and leases, including held for sale | $113,528 | $114,443 | $113,701 | $111,464 | $114,613 | |||||||||||||||
Securities and other short-term investments | 69,273 | 70,475 | 69,014 | 70,954 | 66,091 | |||||||||||||||
Assets | 205,449 | 206,353 | 203,836 | 203,930 | 202,533 | |||||||||||||||
Transaction deposits(b) | 159,404 | 158,779 | 153,834 | 153,053 | 148,567 | |||||||||||||||
Core deposits(c) | 161,787 | 161,475 | 156,879 | 156,326 | 152,278 | |||||||||||||||
Wholesale funding(d) | 14,387 | 16,470 | 18,391 | 18,716 | 21,762 | |||||||||||||||
Bancorp shareholders' equity | 22,927 | 22,927 | 22,952 | 23,126 | 22,952 | |||||||||||||||
Regulatory Capital Ratios(e)(f) | ||||||||||||||||||||
CET1 capital | 9.85 | % | 10.37 | % | 10.46 | % | 10.34 | % | 10.14 | % | ||||||||||
Tier I risk-based capital | 11.27 | % | 11.83 | % | 11.94 | % | 11.83 | % | 11.64 | % | ||||||||||
Total risk-based capital | 13.92 | % | 14.60 | % | 14.80 | % | 15.08 | % | 14.93 | % | ||||||||||
Tier I leverage | 8.35 | % | 8.55 | % | 8.61 | % | 8.49 | % | 8.37 | % | ||||||||||
Operations | ||||||||||||||||||||
Banking centers | 1,100 | 1,096 | 1,098 | 1,134 | 1,122 | |||||||||||||||
ATMs | 2,336 | 2,369 | 2,383 | 2,397 | 2,414 | |||||||||||||||
Full-time equivalent employees | 19,171 | 19,402 | 19,819 | 19,872 | 20,283 |
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||||
$ in millions | For the Three Months Ended | % Change | Year to Date | % Change | ||||||||||||||||||||||
(unaudited) | September | June | September | September | September | |||||||||||||||||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | 2021 | 2020 | Yr/Yr | |||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||
Interest and fees on loans and leases | $1,014 | $1,035 | $1,047 | (2%) | (3%) | $3,078 | $3,397 | (9%) | ||||||||||||||||||
Interest on securities | 266 | 279 | 274 | (5%) | (3%) | 809 | 840 | (4%) | ||||||||||||||||||
Interest on other short-term investments | 12 | 9 | 8 | 33% | 50% | 29 | 20 | 45% | ||||||||||||||||||
Total interest income | 1,292 | 1,323 | 1,329 | (2%) | (3%) | 3,916 | 4,257 | (8%) | ||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||
Interest on deposits | 12 | 15 | 46 | (20%) | (74%) | 48 | 295 | (84%) | ||||||||||||||||||
Interest on federal funds purchased | — | — | — | — | — | — | 2 | (100%) | ||||||||||||||||||
Interest on other short-term borrowings | — | — | 5 | — | (100%) | 1 | 13 | (92%) | ||||||||||||||||||
Interest on long-term debt | 91 | 100 | 108 | (9%) | (16%) | 293 | 347 | (16%) | ||||||||||||||||||
Total interest expense | 103 | 115 | 159 | (10%) | (35%) | 342 | 657 | (48%) | ||||||||||||||||||
Net Interest Income | 1,189 | 1,208 | 1,170 | (2%) | 2% | 3,574 | 3,600 | (1%) | ||||||||||||||||||
(Benefit from) provision for credit losses | (42) | (115) | (15) | (63%) | 180% | (330) | 1,110 | NM | ||||||||||||||||||
Net Interest Income After (Benefit from) Provision for Credit Losses | 1,231 | 1,323 | 1,185 | (7%) | 4% | 3,904 | 2,490 | 57% | ||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||
Service charges on deposits | 152 | 149 | 144 | 2% | 6% | 445 | 414 | 7% | ||||||||||||||||||
Commercial banking revenue | 152 | 160 | 125 | (5%) | 22% | 465 | 387 | 20% | ||||||||||||||||||
Mortgage banking net revenue | 86 | 64 | 76 | 34% | 13% | 235 | 295 | (20%) | ||||||||||||||||||
Wealth and asset management revenue | 147 | 145 | 132 | 1% | 11% | 436 | 387 | 13% | ||||||||||||||||||
Card and processing revenue | 102 | 102 | 92 | — | 11% | 298 | 260 | 15% | ||||||||||||||||||
Leasing business revenue | 78 | 61 | 77 | 28% | 1% | 226 | 207 | 9% | ||||||||||||||||||
Other noninterest income | 120 | 49 | 26 | 145% | 362% | 211 | 42 | 402% | ||||||||||||||||||
Securities gains (losses), net | (1) | 10 | 51 | NM | NM | 12 | 48 | (75%) | ||||||||||||||||||
Securities (losses) gains, net - non-qualifying hedges on mortgage servicing rights | — | 1 | (1) | (100%) | (100%) | (2) | 3 | NM | ||||||||||||||||||
Total noninterest income | 836 | 741 | 722 | 13% | 16% | 2,326 | 2,043 | 14% | ||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||
Compensation and benefits | 627 | 638 | 637 | (2%) | (2%) | 1,971 | 1,911 | 3% | ||||||||||||||||||
Net occupancy expense | 79 | 77 | 90 | 3% | (12%) | 235 | 254 | (7%) | ||||||||||||||||||
Technology and communications | 98 | 94 | 89 | 4% | 10% | 285 | 272 | 5% | ||||||||||||||||||
Equipment expense | 34 | 34 | 33 | — | 3% | 102 | 97 | 5% | ||||||||||||||||||
Card and processing expense | 19 | 20 | 29 | (5%) | (34%) | 70 | 89 | (21%) | ||||||||||||||||||
Leasing business expense | 33 | 33 | 35 | — | (6%) | 102 | 103 | (1%) | ||||||||||||||||||
Marketing expense | 29 | 20 | 23 | 45% | 26% | 72 | 74 | (3%) | ||||||||||||||||||
Other noninterest expense | 253 | 237 | 225 | 7% | 12% | 704 | 682 | 3% | ||||||||||||||||||
Total noninterest expense | 1,172 | 1,153 | 1,161 | 2% | 1% | 3,541 | 3,482 | 2% | ||||||||||||||||||
Income Before Income Taxes | 895 | 911 | 746 | (2%) | 20% | 2,689 | 1,051 | 156% | ||||||||||||||||||
Applicable income tax expense | 191 | 202 | 165 | (5%) | 16% | 582 | 228 | 155% | ||||||||||||||||||
Net Income | 704 | 709 | 581 | (1%) | 21% | 2,107 | 823 | 156% | ||||||||||||||||||
Dividends on preferred stock | 20 | 35 | 19 | (43%) | 5% | 75 | 69 | 9% | ||||||||||||||||||
Net Income Available to Common Shareholders | $684 | $674 | $562 | 1% | 22% | $2,032 | $754 | 169% |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Consolidated Statements of Income | |||||||||||||||||
$ in millions | For the Three Months Ended | ||||||||||||||||
(unaudited) | September | June | March | December | September | ||||||||||||
2021 | 2021 | 2021 | 2020 | 2020 | |||||||||||||
Interest Income | |||||||||||||||||
Interest and fees on loans and leases | $1,014 | $1,035 | $1,030 | $1,028 | $1,047 | ||||||||||||
Interest on securities | 266 | 279 | 264 | 278 | 274 | ||||||||||||
Interest on other short-term investments | 12 | 9 | 8 | 9 | 8 | ||||||||||||
Total interest income | 1,292 | 1,323 | 1,302 | 1,315 | 1,329 | ||||||||||||
Interest Expense | |||||||||||||||||
Interest on deposits | 12 | 15 | 21 | 27 | 46 | ||||||||||||
Interest on other short-term borrowings | — | — | 1 | 1 | 5 | ||||||||||||
Interest on long-term debt | 91 | 100 | 104 | 105 | 108 | ||||||||||||
Total interest expense | 103 | 115 | 126 | 133 | 159 | ||||||||||||
Net Interest Income | 1,189 | 1,208 | 1,176 | 1,182 | 1,170 | ||||||||||||
Benefit from credit losses | (42) | (115) | (173) | (13) | (15) | ||||||||||||
Net Interest Income After Benefit from Credit Losses | 1,231 | 1,323 | 1,349 | 1,195 | 1,185 | ||||||||||||
Noninterest Income | |||||||||||||||||
Service charges on deposits | 152 | 149 | 144 | 146 | 144 | ||||||||||||
Commercial banking revenue | 152 | 160 | 153 | 141 | 125 | ||||||||||||
Mortgage banking net revenue | 86 | 64 | 85 | 25 | 76 | ||||||||||||
Wealth and asset management revenue | 147 | 145 | 143 | 133 | 132 | ||||||||||||
Card and processing revenue | 102 | 102 | 94 | 92 | 92 | ||||||||||||
Leasing business revenue | 78 | 61 | 87 | 69 | 77 | ||||||||||||
Other noninterest income | 120 | 49 | 42 | 168 | 26 | ||||||||||||
Securities (losses) gains, net | (1) | 10 | 3 | 14 | 51 | ||||||||||||
Securities (losses) gains, net - non-qualifying hedges on mortgage servicing rights | — | 1 | (2) | (1) | (1) | ||||||||||||
Total noninterest income | 836 | 741 | 749 | 787 | 722 | ||||||||||||
Noninterest Expense | |||||||||||||||||
Compensation and benefits | 627 | 638 | 706 | 679 | 637 | ||||||||||||
Net occupancy expense | 79 | 77 | 79 | 98 | 90 | ||||||||||||
Technology and communications | 98 | 94 | 93 | 90 | 89 | ||||||||||||
Equipment expense | 34 | 34 | 34 | 34 | 33 | ||||||||||||
Card and processing expense | 19 | 20 | 30 | 31 | 29 | ||||||||||||
Leasing business expense | 33 | 33 | 35 | 37 | 35 | ||||||||||||
Marketing expense | 29 | 20 | 23 | 30 | 23 | ||||||||||||
Other noninterest expense | 253 | 237 | 215 | 237 | 225 | ||||||||||||
Total noninterest expense | 1,172 | 1,153 | 1,215 | 1,236 | 1,161 | ||||||||||||
Income Before Income Taxes | 895 | 911 | 883 | 746 | 746 | ||||||||||||
Applicable income tax expense | 191 | 202 | 189 | 142 | 165 | ||||||||||||
Net Income | 704 | 709 | 694 | 604 | 581 | ||||||||||||
Dividends on preferred stock | 20 | 35 | 20 | 35 | 19 | ||||||||||||
Net Income Available to Common Shareholders | $684 | $674 | $674 | $569 | $562 |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||
$ in millions, except per share data | As of | % Change | |||||||||||||||
(unaudited) | September | June | September | ||||||||||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | |||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $3,213 | $3,285 | $2,996 | (2%) | 7% | ||||||||||||
Other short-term investments | 34,203 | 32,409 | 31,285 | 6% | 9% | ||||||||||||
Available-for-sale debt and other securities(a) | 37,870 | 38,012 | 37,425 | — | 1% | ||||||||||||
Held-to-maturity securities(b) | 8 | 10 | 15 | (20%) | (47%) | ||||||||||||
Trading debt securities | 685 | 711 | 704 | (4%) | (3%) | ||||||||||||
Equity securities | 329 | 341 | 277 | (4%) | 19% | ||||||||||||
Loans and leases held for sale | 5,203 | 5,730 | 2,323 | (9%) | 124% | ||||||||||||
Portfolio loans and leases: | |||||||||||||||||
Commercial and industrial loans | 47,834 | 47,564 | 51,695 | 1% | (7%) | ||||||||||||
Commercial mortgage loans | 10,300 | 10,347 | 10,878 | — | (5%) | ||||||||||||
Commercial construction loans | 5,456 | 5,871 | 5,656 | (7%) | (4%) | ||||||||||||
Commercial leases | 3,130 | 3,238 | 3,021 | (3%) | 4% | ||||||||||||
Total commercial loans and leases | 66,720 | 67,020 | 71,250 | — | (6%) | ||||||||||||
Residential mortgage loans | 16,158 | 16,131 | 16,158 | — | — | ||||||||||||
Home equity | 4,276 | 4,545 | 5,455 | (6%) | (22%) | ||||||||||||
Indirect secured consumer loans | 16,004 | 15,192 | 12,925 | 5% | 24% | ||||||||||||
Credit card | 1,744 | 1,793 | 2,087 | (3%) | (16%) | ||||||||||||
Other consumer loans | 3,009 | 3,052 | 2,856 | (1%) | 5% | ||||||||||||
Total consumer loans | 41,191 | 40,713 | 39,481 | 1% | 4% | ||||||||||||
Portfolio loans and leases | 107,911 | 107,733 | 110,731 | — | (3%) | ||||||||||||
Allowance for loan and lease losses | (1,954) | (2,033) | (2,574) | (4%) | (24%) | ||||||||||||
Portfolio loans and leases, net | 105,957 | 105,700 | 108,157 | — | (2%) | ||||||||||||
Bank premises and equipment | 2,101 | 2,073 | 2,090 | 1% | 1% | ||||||||||||
Operating lease equipment | 647 | 715 | 818 | (10%) | (21%) | ||||||||||||
Goodwill | 4,514 | 4,259 | 4,261 | 6% | 6% | ||||||||||||
Intangible assets | 169 | 117 | 157 | 44% | 8% | ||||||||||||
Servicing rights | 943 | 818 | 660 | 15% | 43% | ||||||||||||
Other assets | 11,889 | 11,210 | 10,828 | 6% | 10% | ||||||||||||
Total Assets | $207,731 | $205,390 | $201,996 | 1% | 3% | ||||||||||||
Liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Demand | $63,879 | $62,760 | $51,896 | 2% | 23% | ||||||||||||
Interest checking | 45,964 | 44,872 | 49,566 | 2% | (7%) | ||||||||||||
Savings | 21,423 | 20,667 | 17,221 | 4% | 24% | ||||||||||||
Money market | 30,652 | 30,564 | 31,192 | — | (2%) | ||||||||||||
Foreign office | 202 | 152 | 160 | 33% | 26% | ||||||||||||
Other time | 2,204 | 2,408 | 3,337 | (8%) | (34%) | ||||||||||||
Certificates $100,000 and over | 784 | 860 | 3,311 | (9%) | (76%) | ||||||||||||
Total deposits | 165,108 | 162,283 | 156,683 | 2% | 5% | ||||||||||||
Federal funds purchased | 309 | 338 | 251 | (9%) | 23% | ||||||||||||
Other short-term borrowings | 949 | 1,130 | 1,196 | (16%) | (21%) | ||||||||||||
Accrued taxes, interest and expenses | 2,083 | 2,045 | 2,500 | 2% | (17%) | ||||||||||||
Other liabilities | 5,339 | 4,304 | 3,292 | 24% | 62% | ||||||||||||
Long-term debt | 11,419 | 12,364 | 15,123 | (8%) | (24%) | ||||||||||||
Total Liabilities | 185,207 | 182,464 | 179,045 | 2% | 3% | ||||||||||||
Equity | |||||||||||||||||
Common stock(c) | 2,051 | 2,051 | 2,051 | — | — | ||||||||||||
Preferred stock | 2,116 | 2,116 | 2,116 | — | — | ||||||||||||
Capital surplus | 3,611 | 3,602 | 3,624 | — | — | ||||||||||||
Retained earnings | 19,817 | 19,343 | 18,010 | 2% | 10% | ||||||||||||
Accumulated other comprehensive income | 1,637 | 1,974 | 2,831 | (17%) | (42%) | ||||||||||||
Treasury stock | (6,708) | (6,160) | (5,681) | 9% | 18% | ||||||||||||
Total Equity | 22,524 | 22,926 | 22,951 | (2%) | (2%) | ||||||||||||
Total Liabilities and Equity | $207,731 | $205,390 | $201,996 | 1% | 3% | ||||||||||||
(a) Amortized cost | $36,308 | $36,081 | $34,693 | 1% | 5% | ||||||||||||
(b) Market values | 8 | 10 | 15 | (20%) | (47%) | ||||||||||||
(c) Common shares, stated value $2.22 per share (in thousands): | |||||||||||||||||
Authorized | 2,000,000 | 2,000,000 | 2,000,000 | — | — | ||||||||||||
Outstanding, excluding treasury | 689,790 | 703,740 | 712,328 | (2 | %) | (3 | %) | ||||||||||
Treasury | 234,102 | 220,153 | 211,565 | 6 | % | 11 | % |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||
$ in millions, except per share data | As of | ||||||||||||||||
(unaudited) | September | June | March | December | September | ||||||||||||
2021 | 2021 | 2021 | 2020 | 2020 | |||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $3,213 | $3,285 | $3,122 | $3,147 | $2,996 | ||||||||||||
Other short-term investments | 34,203 | 32,409 | 34,187 | 33,399 | 31,285 | ||||||||||||
Available-for-sale debt and other securities(a) | 37,870 | 38,012 | 37,595 | 37,513 | 37,425 | ||||||||||||
Held-to-maturity securities(b) | 8 | 10 | 10 | 11 | 15 | ||||||||||||
Trading debt securities | 685 | 711 | 728 | 560 | 704 | ||||||||||||
Equity securities | 329 | 341 | 315 | 313 | 277 | ||||||||||||
Loans and leases held for sale | 5,203 | 5,730 | 5,477 | 4,741 | 2,323 | ||||||||||||
Portfolio loans and leases: | |||||||||||||||||
Commercial and industrial loans | 47,834 | 47,564 | 49,094 | 49,665 | 51,695 | ||||||||||||
Commercial mortgage loans | 10,300 | 10,347 | 10,481 | 10,602 | 10,878 | ||||||||||||
Commercial construction loans | 5,456 | 5,871 | 6,198 | 5,815 | 5,656 | ||||||||||||
Commercial leases | 3,130 | 3,238 | 3,255 | 2,915 | 3,021 | ||||||||||||
Total commercial loans and leases | 66,720 | 67,020 | 69,028 | 68,997 | 71,250 | ||||||||||||
Residential mortgage loans | 16,158 | 16,131 | 15,776 | 15,928 | 16,158 | ||||||||||||
Home equity | 4,276 | 4,545 | 4,815 | 5,183 | 5,455 | ||||||||||||
Indirect secured consumer loans | 16,004 | 15,192 | 14,336 | 13,653 | 12,925 | ||||||||||||
Credit card | 1,744 | 1,793 | 1,810 | 2,007 | 2,087 | ||||||||||||
Other consumer loans | 3,009 | 3,052 | 3,090 | 3,014 | 2,856 | ||||||||||||
Total consumer loans | 41,191 | 40,713 | 39,827 | 39,785 | 39,481 | ||||||||||||
Portfolio loans and leases | 107,911 | 107,733 | 108,855 | 108,782 | 110,731 | ||||||||||||
Allowance for loan and lease losses | (1,954) | (2,033) | (2,208) | (2,453) | (2,574) | ||||||||||||
Portfolio loans and leases, net | 105,957 | 105,700 | 106,647 | 106,329 | 108,157 | ||||||||||||
Bank premises and equipment | 2,101 | 2,073 | 2,072 | 2,088 | 2,090 | ||||||||||||
Operating lease equipment | 647 | 715 | 718 | 777 | 818 | ||||||||||||
Goodwill | 4,514 | 4,259 | 4,259 | 4,258 | 4,261 | ||||||||||||
Intangible assets | 169 | 117 | 127 | 139 | 157 | ||||||||||||
Servicing rights | 943 | 818 | 784 | 656 | 660 | ||||||||||||
Other assets | 11,889 | 11,210 | 10,858 | 10,749 | 10,828 | ||||||||||||
Total Assets | $207,731 | $205,390 | $206,899 | $204,680 | $201,996 | ||||||||||||
Liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Demand | $63,879 | $62,760 | $61,363 | $57,711 | $51,896 | ||||||||||||
Interest checking | 45,964 | 44,872 | 45,582 | 47,270 | 49,566 | ||||||||||||
Savings | 21,423 | 20,667 | 20,162 | 18,258 | 17,221 | ||||||||||||
Money market | 30,652 | 30,564 | 30,630 | 30,650 | 31,192 | ||||||||||||
Foreign office | 202 | 152 | 113 | 143 | 160 | ||||||||||||
Other time | 2,204 | 2,408 | 2,759 | 3,023 | 3,337 | ||||||||||||
Certificates $100,000 and over | 784 | 860 | 1,784 | 2,026 | 3,311 | ||||||||||||
Total deposits | 165,108 | 162,283 | 162,393 | 159,081 | 156,683 | ||||||||||||
Federal funds purchased | 309 | 338 | 302 | 300 | 251 | ||||||||||||
Other short-term borrowings | 949 | 1,130 | 1,106 | 1,192 | 1,196 | ||||||||||||
Accrued taxes, interest and expenses | 2,083 | 2,045 | 1,879 | 2,614 | 2,500 | ||||||||||||
Other liabilities | 5,339 | 4,304 | 3,881 | 3,409 | 3,292 | ||||||||||||
Long-term debt | 11,419 | 12,364 | 14,743 | 14,973 | 15,123 | ||||||||||||
Total Liabilities | 185,207 | 182,464 | 184,304 | 181,569 | 179,045 | ||||||||||||
Equity | |||||||||||||||||
Common stock(c) | 2,051 | 2,051 | 2,051 | 2,051 | 2,051 | ||||||||||||
Preferred stock | 2,116 | 2,116 | 2,116 | 2,116 | 2,116 | ||||||||||||
Capital surplus | 3,611 | 3,602 | 3,592 | 3,635 | 3,624 | ||||||||||||
Retained earnings | 19,817 | 19,343 | 18,863 | 18,384 | 18,010 | ||||||||||||
Accumulated other comprehensive income | 1,637 | 1,974 | 1,792 | 2,601 | 2,831 | ||||||||||||
Treasury stock | (6,708) | (6,160) | (5,819) | (5,676) | (5,681) | ||||||||||||
Total Equity | 22,524 | 22,926 | 22,595 | 23,111 | 22,951 | ||||||||||||
Total Liabilities and Equity | $207,731 | $205,390 | $206,899 | $204,680 | $201,996 | ||||||||||||
(a) Amortized cost | $36,308 | $36,081 | $35,963 | $34,982 | $34,693 | ||||||||||||
(b) Market values | 8 | 10 | 10 | 11 | 15 | ||||||||||||
(c) Common shares, stated value $2.22 per share (in thousands): | |||||||||||||||||
Authorized | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | ||||||||||||
Outstanding, excluding treasury | 689,790 | 703,740 | 711,596 | 712,760 | 712,328 | ||||||||||||
Treasury | 234,102 | 220,153 | 212,297 | 211,132 | 211,565 |
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||
Consolidated Statements of Changes in Equity | ||||||||||||||||||||
$ in millions | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
For the Three Months Ended | Year to Date | |||||||||||||||||||
September | September | September | September | |||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||
Total Equity, Beginning | $22,926 | $22,335 | $23,111 | $21,203 | ||||||||||||||||
Net income | 704 | 581 | 2,107 | 823 | ||||||||||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||||||
Change in unrealized (losses) gains: | ||||||||||||||||||||
Available-for-sale debt securities | (282) | (66) | (741) | 1,272 | ||||||||||||||||
Qualifying cash flow hedges | (56) | (55) | (226) | 364 | ||||||||||||||||
Change in accumulated other comprehensive income related to employee benefit plans | 1 | 1 | 3 | 3 | ||||||||||||||||
Comprehensive income | 367 | 461 | 1,143 | 2,462 | ||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||
Common stock | (210) | (195) | (597) | (585) | ||||||||||||||||
Preferred stock | (20) | (19) | (75) | (69) | ||||||||||||||||
Impact of stock transactions under stock compensation plans, net | 11 | 23 | 20 | 66 | ||||||||||||||||
Shares acquired for treasury | (550) | — | (1,077) | — | ||||||||||||||||
Other | — | — | (1) | — | ||||||||||||||||
Issuance of preferred stock | — | 346 | — | 346 | ||||||||||||||||
Impact of cumulative effect of change in accounting principles | — | — | — | (472) | ||||||||||||||||
Total Equity, Ending | $22,524 | $22,951 | $22,524 | $22,951 | ||||||||||||||||
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||||||||
Average Balance Sheet and Yield/Rate Analysis | For the Three Months Ended | |||||||||||||||||||||||||
$ in millions | September | June | September | |||||||||||||||||||||||
(unaudited) | 2021 | 2021 | 2020 | |||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||
Balance | Yield/Rate | Balance | Yield/Rate | Balance | Yield/Rate | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||
Loans and leases: | ||||||||||||||||||||||||||
Commercial and industrial loans(a) | $47,774 | 3.54 | % | $48,817 | 3.62 | % | $54,056 | 3.35 | % | |||||||||||||||||
Commercial mortgage loans(a) | 10,339 | 3.00 | % | 10,467 | 3.11 | % | 11,071 | 3.12 | % | |||||||||||||||||
Commercial construction loans(a) | 5,729 | 3.12 | % | 6,043 | 3.09 | % | 5,534 | 3.18 | % | |||||||||||||||||
Commercial leases(a) | 3,158 | 2.84 | % | 3,174 | 2.94 | % | 2,966 | 3.44 | % | |||||||||||||||||
Total commercial loans and leases | 67,000 | 3.39 | % | 68,501 | 3.47 | % | 73,627 | 3.30 | % | |||||||||||||||||
Residential mortgage loans | 21,750 | 3.21 | % | 21,740 | 3.29 | % | 17,814 | 3.48 | % | |||||||||||||||||
Home equity | 4,409 | 3.59 | % | 4,674 | 3.60 | % | 5,581 | 3.59 | % | |||||||||||||||||
Indirect secured consumer loans | 15,590 | 3.27 | % | 14,702 | 3.41 | % | 12,599 | 3.93 | % | |||||||||||||||||
Credit card | 1,748 | 12.38 | % | 1,770 | 12.13 | % | 2,134 | 11.37 | % | |||||||||||||||||
Other consumer loans | 3,031 | 5.91 | % | 3,056 | 5.96 | % | 2,858 | 6.46 | % | |||||||||||||||||
Total consumer loans | 46,528 | 3.79 | % | 45,942 | 3.88 | % | 40,986 | 4.25 | % | |||||||||||||||||
Total loans and leases | 113,528 | 3.55 | % | 114,443 | 3.63 | % | 114,613 | 3.64 | % | |||||||||||||||||
Securities: | ||||||||||||||||||||||||||
Taxable securities | 36,177 | 2.86 | % | 36,097 | 3.06 | % | 36,147 | 3.01 | % | |||||||||||||||||
Tax exempt securities(a) | 1,031 | 2.22 | % | 820 | 2.47 | % | 153 | 2.99 | % | |||||||||||||||||
Other short-term investments | 32,065 | 0.15 | % | 33,558 | 0.11 | % | 29,791 | 0.10 | % | |||||||||||||||||
Total interest-earning assets | 182,801 | 2.81 | % | 184,918 | 2.88 | % | 180,704 | 2.93 | % | |||||||||||||||||
Cash and due from banks | 3,114 | 3,033 | 2,944 | |||||||||||||||||||||||
Other assets | 21,566 | 20,608 | 21,583 | |||||||||||||||||||||||
Allowance for loan and lease losses | (2,032) | (2,206) | (2,698) | |||||||||||||||||||||||
Total Assets | $205,449 | $206,353 | $202,533 | |||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||
Interest checking deposits | $45,128 | 0.05 | % | $45,307 | 0.06 | % | $49,800 | 0.10 | % | |||||||||||||||||
Savings deposits | 20,941 | 0.02 | % | 20,494 | 0.02 | % | 17,013 | 0.04 | % | |||||||||||||||||
Money market deposits | 30,514 | 0.03 | % | 30,844 | 0.05 | % | 31,151 | 0.14 | % | |||||||||||||||||
Foreign office deposits | 195 | 0.03 | % | 140 | 0.03 | % | 189 | 0.06 | % | |||||||||||||||||
Other time deposits | 2,383 | 0.16 | % | 2,696 | 0.27 | % | 3,711 | 0.95 | % | |||||||||||||||||
Total interest-bearing core deposits | 99,161 | 0.04 | % | 99,481 | 0.05 | % | 101,864 | 0.13 | % | |||||||||||||||||
Certificates $100,000 and over | 860 | 0.61 | % | 1,144 | 0.80 | % | 3,633 | 1.26 | % | |||||||||||||||||
Federal funds purchased | 348 | 0.13 | % | 346 | 0.10 | % | 273 | 0.20 | % | |||||||||||||||||
Other short-term borrowings | 1,122 | 0.12 | % | 1,097 | 0.12 | % | 1,626 | 1.28 | % | |||||||||||||||||
Long-term debt | 12,057 | 2.98 | % | 13,883 | 2.85 | % | 16,230 | 2.62 | % | |||||||||||||||||
Total interest-bearing liabilities | 113,548 | 0.36 | % | 115,951 | 0.40 | % | 123,626 | 0.51 | % | |||||||||||||||||
Demand deposits | 62,626 | 61,994 | 50,414 | |||||||||||||||||||||||
Other liabilities | 6,348 | 5,481 | 5,541 | |||||||||||||||||||||||
Total Liabilities | 182,522 | 183,426 | 179,581 | |||||||||||||||||||||||
Total Equity | 22,927 | 22,927 | 22,952 | |||||||||||||||||||||||
Total Liabilities and Equity | $205,449 | $206,353 | $202,533 | |||||||||||||||||||||||
Ratios: | ||||||||||||||||||||||||||
Net interest margin (FTE)(b) | 2.59 | % | 2.63 | % | 2.58 | % | ||||||||||||||||||||
Net interest rate spread (FTE)(b) | 2.45 | % | 2.48 | % | 2.42 | % | ||||||||||||||||||||
Interest-bearing liabilities to interest-earning assets | 62.12 | % | 62.70 | % | 68.41 | % | ||||||||||||||||||||
(a) Average Yield/Rate of these assets are presented on an FTE basis. | ||||||||||||||||||||||||||
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27. |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Average Balance Sheet and Yield/Rate Analysis | Year to Date | ||||||||||||||||
$ in millions | September | September | |||||||||||||||
(unaudited) | 2021 | 2020 | |||||||||||||||
Average | Average | Average | Average | ||||||||||||||
Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||||
Assets | |||||||||||||||||
Interest-earning assets: | |||||||||||||||||
Loans and leases: | |||||||||||||||||
Commercial and industrial loans(a) | $48,761 | 3.59 | % | $54,948 | 3.67 | % | |||||||||||
Commercial mortgage loans(a) | 10,446 | 3.06 | % | 11,105 | 3.66 | % | |||||||||||
Commercial construction loans(a) | 5,936 | 3.14 | % | 5,405 | 3.82 | % | |||||||||||
Commercial leases(a) | 3,154 | 2.98 | % | 3,074 | 3.46 | % | |||||||||||
Total commercial loans and leases | 68,297 | 3.44 | % | 74,532 | 3.67 | % | |||||||||||
Residential mortgage loans | 21,316 | 3.28 | % | 17,748 | 3.55 | % | |||||||||||
Home equity | 4,695 | 3.59 | % | 5,802 | 3.98 | % | |||||||||||
Indirect secured consumer loans | 14,755 | 3.41 | % | 12,179 | 4.02 | % | |||||||||||
Credit card | 1,798 | 12.29 | % | 2,293 | 11.61 | % | |||||||||||
Other consumer loans | 3,029 | 5.99 | % | 2,847 | 6.88 | % | |||||||||||
Total consumer loans | 45,593 | 3.89 | % | 40,869 | 4.43 | % | |||||||||||
Total loans and leases | 113,890 | 3.62 | % | 115,401 | 3.94 | % | |||||||||||
Securities: | |||||||||||||||||
Taxable securities | 36,014 | 2.96 | % | 36,312 | 3.08 | % | |||||||||||
Tax exempt securities(a) | 797 | 2.32 | % | 157 | 3.00 | % | |||||||||||
Other short-term investments | 32,778 | 0.12 | % | 17,552 | 0.15 | % | |||||||||||
Total interest-earning assets | 183,479 | 2.86 | % | 169,422 | 3.36 | % | |||||||||||
Cash and due from banks | 3,046 | 2,981 | |||||||||||||||
Other assets | 20,922 | 20,870 | |||||||||||||||
Allowance for loan and lease losses | (2,228) | (2,300) | |||||||||||||||
Total Assets | $205,219 | $190,973 | |||||||||||||||
Liabilities | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Interest checking deposits | $45,333 | 0.06 | % | $46,631 | 0.33 | % | |||||||||||
Savings deposits | 20,136 | 0.02 | % | 16,031 | 0.07 | % | |||||||||||
Money market deposits | 30,653 | 0.04 | % | 29,434 | 0.38 | % | |||||||||||
Foreign office deposits | 155 | 0.04 | % | 193 | 0.25 | % | |||||||||||
Other time deposits | 2,706 | 0.30 | % | 4,402 | 1.27 | % | |||||||||||
Total interest-bearing core deposits | 98,983 | 0.05 | % | 96,691 | 0.35 | % | |||||||||||
Certificates $100,000 and over | 1,334 | 0.90 | % | 3,685 | 1.56 | % | |||||||||||
Other deposits | — | — | 95 | 0.76 | % | ||||||||||||
Federal funds purchased | 339 | 0.12 | % | 412 | 0.68 | % | |||||||||||
Other short-term borrowings | 1,142 | 0.16 | % | 1,916 | 0.90 | % | |||||||||||
Long-term debt | 13,585 | 2.88 | % | 16,333 | 2.84 | % | |||||||||||
Total interest-bearing liabilities | 115,383 | 0.40 | % | 119,132 | 0.74 | % | |||||||||||
Demand deposits | 61,084 | 44,004 | |||||||||||||||
Other liabilities | 5,817 | 5,473 | |||||||||||||||
Total Liabilities | 182,284 | 168,609 | |||||||||||||||
Total Equity | 22,935 | 22,364 | |||||||||||||||
Total Liabilities and Equity | $205,219 | $190,973 | |||||||||||||||
Ratios: | |||||||||||||||||
Net interest margin (FTE)(b) | 2.61 | % | 2.85 | % | |||||||||||||
Net interest rate spread (FTE)(b) | 2.46 | % | 2.62 | % | |||||||||||||
Interest-bearing liabilities to interest-earning assets | 62.89 | % | 70.32 | % | |||||||||||||
(a) Average Yield/Rate of these assets are presented on an FTE basis. | |||||||||||||||||
(b) Non-GAAP measure; see discussion and reconciliation of non-GAAP measures beginning on page 27. |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Summary of Loans and Leases | |||||||||||||||||
$ in millions | For the Three Months Ended | ||||||||||||||||
(unaudited) | September | June | March | December | September | ||||||||||||
2021 | 2021 | 2021 | 2020 | 2020 | |||||||||||||
Average Portfolio Loans and Leases | |||||||||||||||||
Commercial loans and leases: | |||||||||||||||||
Commercial and industrial loans | $47,766 | $48,773 | $49,629 | $50,385 | $54,004 | ||||||||||||
Commercial mortgage loans | 10,317 | 10,459 | 10,532 | 10,727 | 11,069 | ||||||||||||
Commercial construction loans | 5,728 | 6,043 | 6,039 | 5,820 | 5,534 | ||||||||||||
Commercial leases | 3,158 | 3,174 | 3,114 | 2,932 | 2,966 | ||||||||||||
Total commercial loans and leases | 66,969 | 68,449 | 69,314 | 69,864 | 73,573 | ||||||||||||
Consumer loans: | |||||||||||||||||
Residential mortgage loans | 16,223 | 15,883 | 15,803 | 16,016 | 16,618 | ||||||||||||
Home equity | 4,409 | 4,674 | 5,009 | 5,315 | 5,581 | ||||||||||||
Indirect secured consumer loans | 15,590 | 14,702 | 13,955 | 13,272 | 12,599 | ||||||||||||
Credit card | 1,748 | 1,770 | 1,879 | 2,042 | 2,134 | ||||||||||||
Other consumer loans | 3,031 | 3,056 | 2,996 | 2,851 | 2,857 | ||||||||||||
Total consumer loans | 41,001 | 40,085 | 39,642 | 39,496 | 39,789 | ||||||||||||
Total average portfolio loans and leases | $107,970 | $108,534 | $108,956 | $109,360 | $113,362 | ||||||||||||
Average Loans and Leases Held for Sale | |||||||||||||||||
Commercial loans and leases held for sale | $31 | $52 | $104 | $56 | $55 | ||||||||||||
Consumer loans held for sale | 5,527 | 5,857 | 4,641 | 2,048 | 1,196 | ||||||||||||
Average loans and leases held for sale | $5,558 | $5,909 | $4,745 | $2,104 | $1,251 | ||||||||||||
Average PPP loans(a) | $3,071 | $4,810 | $5,200 | $5,098 | $5,216 | ||||||||||||
Average portfolio commercial and industrial loans - excluding PPP loans | 44,695 | 43,963 | 44,429 | 45,287 | 48,788 | ||||||||||||
Total average portfolio commercial and industrial loans | $47,766 | $48,773 | $49,629 | $50,385 | $54,004 | ||||||||||||
End of Period Portfolio Loans and Leases | |||||||||||||||||
Commercial loans and leases: | |||||||||||||||||
Commercial and industrial loans | $47,834 | $47,564 | $49,094 | $49,665 | $51,695 | ||||||||||||
Commercial mortgage loans | 10,300 | 10,347 | 10,481 | 10,602 | 10,878 | ||||||||||||
Commercial construction loans | 5,456 | 5,871 | 6,198 | 5,815 | 5,656 | ||||||||||||
Commercial leases | 3,130 | 3,238 | 3,255 | 2,915 | 3,021 | ||||||||||||
Total commercial loans and leases | 66,720 | 67,020 | 69,028 | 68,997 | 71,250 | ||||||||||||
Consumer loans: | |||||||||||||||||
Residential mortgage loans | 16,158 | 16,131 | 15,776 | 15,928 | 16,158 | ||||||||||||
Home equity | 4,276 | 4,545 | 4,815 | 5,183 | 5,455 | ||||||||||||
Indirect secured consumer loans | 16,004 | 15,192 | 14,336 | 13,653 | 12,925 | ||||||||||||
Credit card | 1,744 | 1,793 | 1,810 | 2,007 | 2,087 | ||||||||||||
Other consumer loans | 3,009 | 3,052 | 3,090 | 3,014 | 2,856 | ||||||||||||
Total consumer loans | 41,191 | 40,713 | 39,827 | 39,785 | 39,481 | ||||||||||||
Total portfolio loans and leases | $107,911 | $107,733 | $108,855 | $108,782 | $110,731 | ||||||||||||
End of Period Loans and Leases Held for Sale | |||||||||||||||||
Commercial loans and leases held for sale | $2 | $46 | $80 | $276 | $59 | ||||||||||||
Consumer loans held for sale | 5,201 | 5,684 | 5,397 | 4,465 | 2,264 | ||||||||||||
Loans and leases held for sale | $5,203 | $5,730 | $5,477 | $4,741 | $2,323 | ||||||||||||
Operating lease equipment | $647 | $715 | $718 | $777 | $818 | ||||||||||||
Loans and Leases Serviced for Others(b) | |||||||||||||||||
Commercial and industrial loans | $879 | $919 | $1,011 | $979 | $903 | ||||||||||||
Commercial mortgage loans | 620 | 623 | 639 | 653 | 585 | ||||||||||||
Commercial construction loans | 487 | 528 | 592 | 601 | 623 | ||||||||||||
Commercial leases | 555 | 536 | 547 | 569 | 584 | ||||||||||||
Residential mortgage loans | 77,929 | 71,496 | 65,922 | 68,800 | 73,521 | ||||||||||||
Other consumer loans | 50 | 50 | 50 | 50 | 50 | ||||||||||||
Total loans and leases serviced for others | 80,520 | 74,152 | 68,761 | 71,652 | 76,266 | ||||||||||||
Total loans and leases serviced | $194,281 | $188,330 | $183,811 | $185,952 | $190,138 | ||||||||||||
End of period PPP loans(a) | $2,344 | $3,685 | $5,381 | $4,844 | $5,242 | ||||||||||||
End of period portfolio commercial and industrial loans - excluding PPP loans | 45,490 | 43,879 | 43,713 | 44,821 | 46,453 | ||||||||||||
Total end of period portfolio commercial and industrial loans | $47,834 | $47,564 | $49,094 | $49,665 | $51,695 |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||||||||
Regulatory Capital | |||||||||||||||||||||||
$ in millions | As of | ||||||||||||||||||||||
(unaudited) | September | June | March | December | September | ||||||||||||||||||
2021(a) | 2021 | 2021 | 2020 | 2020 | |||||||||||||||||||
Regulatory Capital(b) | |||||||||||||||||||||||
CET1 capital | $14,673 | $15,050 | $14,931 | $14,682 | $14,307 | ||||||||||||||||||
Additional tier I capital | 2,116 | 2,116 | 2,117 | 2,115 | 2,115 | ||||||||||||||||||
Tier I capital | 16,789 | 17,166 | 17,048 | 16,797 | 16,422 | ||||||||||||||||||
Tier II capital | 3,952 | 4,018 | 4,083 | 4,615 | 4,645 | ||||||||||||||||||
Total regulatory capital | $20,741 | $21,184 | $21,131 | $21,412 | $21,067 | ||||||||||||||||||
Risk-weighted assets | $148,982 | $145,084 | $142,799 | $141,974 | $141,083 | ||||||||||||||||||
Ratios | |||||||||||||||||||||||
Average total Bancorp shareholders' equity as a percent of average assets | 11.16 | % | 11.11 | % | 11.26 | % | 11.34 | % | 11.33 | % | |||||||||||||
Regulatory Capital Ratios(b) | |||||||||||||||||||||||
Fifth Third Bancorp | |||||||||||||||||||||||
CET1 capital | 9.85 | % | 10.37 | % | 10.46 | % | 10.34 | % | 10.14 | % | |||||||||||||
Tier I risk-based capital | 11.27 | % | 11.83 | % | 11.94 | % | 11.83 | % | 11.64 | % | |||||||||||||
Total risk-based capital | 13.92 | % | 14.60 | % | 14.80 | % | 15.08 | % | 14.93 | % | |||||||||||||
Tier I leverage | 8.35 | % | 8.55 | % | 8.61 | % | 8.49 | % | 8.37 | % | |||||||||||||
Fifth Third Bank | |||||||||||||||||||||||
Tier I risk-based capital | 11.26 | % | 11.67 | % | 12.70 | % | 12.28 | % | 12.25 | % | |||||||||||||
Total risk-based capital | 12.79 | % | 13.27 | % | 14.41 | % | 14.17 | % | 14.14 | % | |||||||||||||
Tier I leverage | 8.35 | % | 8.46 | % | 9.19 | % | 8.85 | % | 8.85 | % |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Summary of Credit Loss Experience | |||||||||||||||||
$ in millions | For the Three Months Ended | ||||||||||||||||
(unaudited) | September | June | March | December | September | ||||||||||||
2021 | 2021 | 2021 | 2020 | 2020 | |||||||||||||
Average portfolio loans and leases: | |||||||||||||||||
Commercial and industrial loans | $47,766 | $48,773 | $49,629 | $50,385 | $54,004 | ||||||||||||
Commercial mortgage loans | 10,317 | 10,459 | 10,532 | 10,727 | 11,069 | ||||||||||||
Commercial construction loans | 5,728 | 6,043 | 6,039 | 5,820 | 5,534 | ||||||||||||
Commercial leases | 3,158 | 3,174 | 3,114 | 2,932 | 2,966 | ||||||||||||
Total commercial loans and leases | 66,969 | 68,449 | 69,314 | 69,864 | 73,573 | ||||||||||||
Residential mortgage loans | 16,223 | 15,883 | 15,803 | 16,016 | 16,618 | ||||||||||||
Home equity | 4,409 | 4,674 | 5,009 | 5,315 | 5,581 | ||||||||||||
Indirect secured consumer loans | 15,590 | 14,702 | 13,955 | 13,272 | 12,599 | ||||||||||||
Credit card | 1,748 | 1,770 | 1,879 | 2,042 | 2,134 | ||||||||||||
Other consumer loans | 3,031 | 3,056 | 2,996 | 2,851 | 2,857 | ||||||||||||
Total consumer loans | 41,001 | 40,085 | 39,642 | 39,496 | 39,789 | ||||||||||||
Total average portfolio loans and leases | $107,970 | $108,534 | $108,956 | $109,360 | $113,362 | ||||||||||||
Losses charged-off: | |||||||||||||||||
Commercial and industrial loans | ($10) | ($36) | ($32) | ($44) | ($45) | ||||||||||||
Commercial mortgage loans | — | (8) | (3) | (31) | (11) | ||||||||||||
Commercial leases | — | (1) | — | — | (10) | ||||||||||||
Total commercial loans and leases | (10) | (45) | (35) | (75) | (66) | ||||||||||||
Residential mortgage loans | (1) | (1) | (1) | (4) | (1) | ||||||||||||
Home equity | (2) | (2) | (3) | (3) | (4) | ||||||||||||
Indirect secured consumer loans | (9) | (11) | (18) | (19) | (11) | ||||||||||||
Credit card | (17) | (26) | (31) | (31) | (34) | ||||||||||||
Other consumer loans | (17) | (18) | (21) | (22) | (19) | ||||||||||||
Total consumer loans | (46) | (58) | (74) | (79) | (69) | ||||||||||||
Total losses charged-off | ($56) | ($103) | ($109) | ($154) | ($135) | ||||||||||||
Recoveries of losses previously charged-off: | |||||||||||||||||
Commercial and industrial loans | $5 | $23 | $5 | $3 | $3 | ||||||||||||
Commercial mortgage loans | 1 | 2 | 1 | 1 | — | ||||||||||||
Commercial leases | — | 3 | 1 | 1 | 2 | ||||||||||||
Total commercial loans and leases | 6 | 28 | 7 | 5 | 5 | ||||||||||||
Residential mortgage loans | 2 | 1 | 1 | 2 | 2 | ||||||||||||
Home equity | 3 | 3 | 3 | 3 | 3 | ||||||||||||
Indirect secured consumer loans | 10 | 11 | 9 | 10 | 8 | ||||||||||||
Credit card | 5 | 6 | 6 | 6 | 5 | ||||||||||||
Other consumer loans | 9 | 10 | 12 | 10 | 11 | ||||||||||||
Total consumer loans | 29 | 31 | 31 | 31 | 29 | ||||||||||||
Total recoveries of losses previously charged-off | $35 | $59 | $38 | $36 | $34 | ||||||||||||
Net losses charged-off: | |||||||||||||||||
Commercial and industrial loans | ($5) | ($13) | ($27) | ($41) | ($42) | ||||||||||||
Commercial mortgage loans | 1 | (6) | (2) | (30) | (11) | ||||||||||||
Commercial leases | — | 2 | 1 | 1 | (8) | ||||||||||||
Total commercial loans and leases | (4) | (17) | (28) | (70) | (61) | ||||||||||||
Residential mortgage loans | 1 | — | — | (2) | 1 | ||||||||||||
Home equity | 1 | 1 | — | — | (1) | ||||||||||||
Indirect secured consumer loans | 1 | — | (9) | (9) | (3) | ||||||||||||
Credit card | (12) | (20) | (25) | (25) | (29) | ||||||||||||
Other consumer loans | (8) | (8) | (9) | (12) | (8) | ||||||||||||
Total consumer loans | (17) | (27) | (43) | (48) | (40) | ||||||||||||
Total net losses charged-off | ($21) | ($44) | ($71) | ($118) | ($101) | ||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized): | |||||||||||||||||
Commercial and industrial loans | 0.04 | % | 0.11 | % | 0.22 | % | 0.33 | % | 0.31 | % | |||||||
Commercial mortgage loans | (0.03 | %) | 0.22 | % | 0.09 | % | 1.13 | % | 0.39 | % | |||||||
Commercial leases | — | (0.21 | %) | (0.09 | %) | (0.15 | %) | 1.09 | % | ||||||||
Total commercial loans and leases | 0.03 | % | 0.10 | % | 0.17 | % | 0.40 | % | 0.33 | % | |||||||
Residential mortgage loans | (0.02 | %) | (0.01 | %) | (0.01 | %) | 0.04 | % | (0.02 | %) | |||||||
Home equity | (0.13 | %) | (0.09 | %) | 0.01 | % | — | 0.07 | % | ||||||||
Indirect secured consumer loans | (0.02 | %) | 0.01 | % | 0.25 | % | 0.28 | % | 0.11 | % | |||||||
Credit card | 2.70 | % | 4.52 | % | 5.50 | % | 4.95 | % | 5.44 | % | |||||||
Other consumer loans | 1.05 | % | 0.91 | % | 1.17 | % | 1.50 | % | 1.05 | % | |||||||
Total consumer loans | 0.16 | % | 0.26 | % | 0.43 | % | 0.47 | % | 0.40 | % | |||||||
Total net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.08 | % | 0.16 | % | 0.27 | % | 0.43 | % | 0.35 | % |
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||
Asset Quality | ||||||||||||||||||||
$ in millions | For the Three Months Ended | |||||||||||||||||||
(unaudited) | September | June | March | December | September | |||||||||||||||
2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||||
Allowance for Credit Losses | ||||||||||||||||||||
Allowance for loan and lease losses, beginning | $2,033 | $2,208 | $2,453 | $2,574 | $2,696 | |||||||||||||||
Total net losses charged-off | (21) | (44) | (71) | (118) | (101) | |||||||||||||||
Benefit from loan and lease losses | (58) | (131) | (174) | (3) | (21) | |||||||||||||||
Allowance for loan and lease losses, ending | $1,954 | $2,033 | $2,208 | $2,453 | $2,574 | |||||||||||||||
Reserve for unfunded commitments, beginning | $189 | $173 | $172 | $182 | $176 | |||||||||||||||
Provision for (benefit from) the reserve for unfunded commitments | 16 | 16 | 1 | (10) | 6 | |||||||||||||||
Reserve for unfunded commitments, ending | $205 | $189 | $173 | $172 | $182 | |||||||||||||||
Components of allowance for credit losses: | ||||||||||||||||||||
Allowance for loan and lease losses | $1,954 | $2,033 | $2,208 | $2,453 | $2,574 | |||||||||||||||
Reserve for unfunded commitments | 205 | 189 | 173 | 172 | 182 | |||||||||||||||
Total allowance for credit losses | $2,159 | $2,222 | $2,381 | $2,625 | $2,756 | |||||||||||||||
As of | ||||||||||||||||||||
September | June | March | December | September | ||||||||||||||||
2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||||
Nonperforming Assets and Delinquent Loans | ||||||||||||||||||||
Nonaccrual portfolio loans and leases: | ||||||||||||||||||||
Commercial and industrial loans | $172 | $193 | $197 | $230 | $266 | |||||||||||||||
Commercial mortgage loans | 43 | 43 | 50 | 82 | 99 | |||||||||||||||
Commercial construction loans | — | — | 1 | — | — | |||||||||||||||
Commercial leases | 6 | 9 | 6 | 7 | 16 | |||||||||||||||
Residential mortgage loans | 13 | 17 | 22 | 25 | 30 | |||||||||||||||
Home equity | 48 | 53 | 55 | 52 | 50 | |||||||||||||||
Indirect secured consumer loans | 5 | 6 | 6 | 9 | 8 | |||||||||||||||
Other consumer loans | 1 | 1 | 2 | 2 | 3 | |||||||||||||||
Total nonaccrual portfolio loans and leases (excludes restructured loans) | 288 | 322 | 339 | 407 | 472 | |||||||||||||||
Nonaccrual restructured portfolio commercial loans and leases | 128 | 164 | 255 | 319 | 307 | |||||||||||||||
Nonaccrual restructured portfolio consumer loans and leases(c) | 112 | 135 | 147 | 108 | 112 | |||||||||||||||
Total nonaccrual portfolio loans and leases | 528 | 621 | 741 | 834 | 891 | |||||||||||||||
Repossessed property | 4 | 5 | 7 | 9 | 7 | |||||||||||||||
OREO | 27 | 31 | 35 | 21 | 33 | |||||||||||||||
Total nonperforming portfolio loans and leases and OREO | 559 | 657 | 783 | 864 | 931 | |||||||||||||||
Nonaccrual loans held for sale | — | 13 | 2 | 5 | 10 | |||||||||||||||
Nonaccrual restructured loans held for sale | 1 | 27 | 20 | 1 | 1 | |||||||||||||||
Total nonperforming assets | $560 | $697 | $805 | $870 | $942 | |||||||||||||||
Restructured portfolio consumer loans and leases (accrual) | $684 | $699 | $763 | $796 | $818 | |||||||||||||||
Restructured portfolio commercial loans and leases (accrual) | $74 | $80 | $81 | $92 | $123 | |||||||||||||||
Loans and leases 90 days past due (accrual): | ||||||||||||||||||||
Commercial and industrial loans | $4 | $2 | $8 | $39 | $4 | |||||||||||||||
Commercial mortgage loans | 2 | 4 | 7 | 8 | 26 | |||||||||||||||
Commercial construction loans | — | — | 1 | — | — | |||||||||||||||
Commercial leases | 1 | — | — | 1 | 2 | |||||||||||||||
Total commercial loans and leases | 7 | 6 | 16 | 48 | 32 | |||||||||||||||
Residential mortgage loans(c) | 61 | 57 | 73 | 70 | 67 | |||||||||||||||
Home equity | 1 | 1 | 1 | 2 | 2 | |||||||||||||||
Indirect secured consumer loans | 8 | 4 | 8 | 10 | 10 | |||||||||||||||
Credit card | 14 | 14 | 25 | 31 | 27 | |||||||||||||||
Other consumer loans | 1 | 1 | 1 | 2 | 1 | |||||||||||||||
Total consumer loans | 85 | 77 | 108 | 115 | 107 | |||||||||||||||
Total loans and leases 90 days past due (accrual)(b) | $92 | $83 | $124 | $163 | $139 | |||||||||||||||
Ratios | ||||||||||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.08 | % | 0.16 | % | 0.27 | % | 0.43 | % | 0.35 | % | ||||||||||
Allowance for credit losses: | ||||||||||||||||||||
As a percent of portfolio loans and leases | 2.00 | % | 2.06 | % | 2.19 | % | 2.41 | % | 2.49 | % | ||||||||||
As a percent of nonperforming portfolio loans and leases(a) | 409 | % | 358 | % | 321 | % | 315 | % | 309 | % | ||||||||||
As a percent of nonperforming portfolio assets(a) | 386 | % | 338 | % | 304 | % | 304 | % | 296 | % | ||||||||||
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases and OREO(a) | 0.49 | % | 0.58 | % | 0.68 | % | 0.77 | % | 0.80 | % | ||||||||||
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a) | 0.52 | % | 0.61 | % | 0.72 | % | 0.79 | % | 0.84 | % | ||||||||||
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property | 0.49 | % | 0.61 | % | 0.70 | % | 0.77 | % | 0.83 | % | ||||||||||
(a) Excludes nonaccrual loans held for sale. | ||||||||||||||||||||
(b) Excludes loans held for sale. | ||||||||||||||||||||
(c) Excludes government guaranteed residential mortgage loans. |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||||||||
Non-GAAP Reconciliation | |||||||||||||||||||||||
$ and shares in millions | As of and For the Three Months Ended | ||||||||||||||||||||||
(unaudited) | September | June | March | December | September | ||||||||||||||||||
2021 | 2021 | 2021 | 2020 | 2020 | |||||||||||||||||||
Net interest income | $1,189 | $1,208 | $1,176 | $1,182 | $1,170 | ||||||||||||||||||
Add: Taxable equivalent adjustment | 3 | 3 | 3 | 3 | 3 | ||||||||||||||||||
Net interest income (FTE) (a) | 1,192 | 1,211 | 1,179 | 1,185 | 1,173 | ||||||||||||||||||
Net interest income (annualized) (b) | 4,717 | 4,845 | 4,769 | 4,702 | 4,655 | ||||||||||||||||||
Net interest income (FTE) (annualized) (c) | 4,729 | 4,857 | 4,782 | 4,714 | 4,667 | ||||||||||||||||||
Interest income | 1,292 | 1,323 | 1,302 | 1,315 | 1,329 | ||||||||||||||||||
Add: Taxable equivalent adjustment | 3 | 3 | 3 | 3 | 3 | ||||||||||||||||||
Interest income (FTE) | 1,295 | 1,326 | 1,305 | 1,318 | 1,332 | ||||||||||||||||||
Interest income (FTE) (annualized) (d) | 5,138 | 5,319 | 5,293 | 5,243 | 5,299 | ||||||||||||||||||
Interest expense (annualized) (e) | 409 | 461 | 511 | 529 | 633 | ||||||||||||||||||
Average interest-earning assets (f) | 182,801 | 184,918 | 182,715 | 182,418 | 180,704 | ||||||||||||||||||
Average interest-bearing liabilities (g) | 113,548 | 115,951 | 116,684 | 118,677 | 123,626 | ||||||||||||||||||
Net interest margin (b) / (f) | 2.58 | % | 2.62 | % | 2.61 | % | 2.58 | % | 2.58 | % | |||||||||||||
Net interest margin (FTE) (c) / (f) | 2.59 | % | 2.63 | % | 2.62 | % | 2.58 | % | 2.58 | % | |||||||||||||
Net interest rate spread (FTE) (d) / (f) - (e) / (g) | 2.45 | % | 2.48 | % | 2.46 | % | 2.42 | % | 2.42 | % | |||||||||||||
Income before income taxes | $895 | $911 | $883 | $746 | $746 | ||||||||||||||||||
Add: Taxable equivalent adjustment | 3 | 3 | 3 | 3 | 3 | ||||||||||||||||||
Income before income taxes (FTE) | $898 | $914 | $886 | $749 | $749 | ||||||||||||||||||
Net income available to common shareholders | $684 | $674 | $674 | $569 | $562 | ||||||||||||||||||
Add: Intangible amortization, net of tax | 9 | 8 | 9 | 9 | 9 | ||||||||||||||||||
Tangible net income available to common shareholders (h) | 693 | 682 | 683 | 578 | 571 | ||||||||||||||||||
Tangible net income available to common shareholders (annualized) (i) | 2,749 | 2,735 | 2,770 | 2,299 | 2,272 | ||||||||||||||||||
Average Bancorp shareholders' equity | 22,927 | 22,927 | 22,952 | 23,126 | 22,952 | ||||||||||||||||||
Less: | Average preferred stock | (2,116) | (2,116) | (2,116) | (2,116) | (2,007) | |||||||||||||||||
Average goodwill | (4,430) | (4,259) | (4,259) | (4,261) | (4,261) | ||||||||||||||||||
Average intangible assets | (149) | (122) | (133) | (151) | (164) | ||||||||||||||||||
Average tangible common equity, including AOCI (j) | 16,232 | 16,430 | 16,444 | 16,598 | 16,520 | ||||||||||||||||||
Less: | Average AOCI | (1,980) | (1,968) | (2,231) | (2,623) | (2,919) | |||||||||||||||||
Average tangible common equity, excluding AOCI (k) | 14,252 | 14,462 | 14,213 | 13,975 | 13,601 | ||||||||||||||||||
Total Bancorp shareholders' equity | 22,524 | 22,926 | 22,595 | 23,111 | 22,951 | ||||||||||||||||||
Less: | Preferred stock | (2,116) | (2,116) | (2,116) | (2,116) | (2,116) | |||||||||||||||||
Goodwill | (4,514) | (4,259) | (4,259) | (4,258) | (4,261) | ||||||||||||||||||
Intangible assets | (169) | (117) | (127) | (139) | (157) | ||||||||||||||||||
Tangible common equity, including AOCI (l) | 15,725 | 16,434 | 16,093 | 16,598 | 16,417 | ||||||||||||||||||
Less: | AOCI | (1,637) | (1,974) | (1,792) | (2,601) | (2,831) | |||||||||||||||||
Tangible common equity, excluding AOCI (m) | 14,088 | 14,460 | 14,301 | 13,997 | 13,586 | ||||||||||||||||||
Add: | Preferred stock | 2,116 | 2,116 | 2,116 | 2,116 | 2,116 | |||||||||||||||||
Tangible equity (n) | 16,204 | 16,576 | 16,417 | 16,113 | 15,702 | ||||||||||||||||||
Total assets | 207,731 | 205,390 | 206,899 | 204,680 | 201,996 | ||||||||||||||||||
Less: | Goodwill | (4,514) | (4,259) | (4,259) | (4,258) | (4,261) | |||||||||||||||||
Intangible assets | (169) | (117) | (127) | (139) | (157) | ||||||||||||||||||
Tangible assets, including AOCI (o) | 203,048 | 201,014 | 202,513 | 200,283 | 197,578 | ||||||||||||||||||
Less: | AOCI, before tax | (2,072) | (2,499) | (2,268) | (3,292) | (3,584) | |||||||||||||||||
Tangible assets, excluding AOCI (p) | $200,976 | $198,515 | $200,245 | $196,991 | $193,994 | ||||||||||||||||||
Common shares outstanding (q) | 690 | 704 | 712 | 713 | 712 | ||||||||||||||||||
Tangible equity (n) / (p) | 8.06 | % | 8.35 | % | 8.20 | % | 8.18 | % | 8.09 | % | |||||||||||||
Tangible common equity (excluding AOCI) (m) / (p) | 7.01 | % | 7.28 | % | 7.14 | % | 7.11 | % | 6.99 | % | |||||||||||||
Tangible common equity (including AOCI) (l) / (o) | 7.74 | % | 8.18 | % | 7.95 | % | 8.29 | % | 8.31 | % | |||||||||||||
Tangible book value per share (l) / (q) | $22.79 | $23.34 | $22.60 | $23.28 | $23.06 |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||||||||
Non-GAAP Reconciliation | |||||||||||||||||||||||
$ in millions | For the Three Months Ended | ||||||||||||||||||||||
(unaudited) | September | June | September | ||||||||||||||||||||
2021 | 2021 | 2020 | |||||||||||||||||||||
Net income (r) | $704 | $709 | $581 | ||||||||||||||||||||
Net income (annualized) (s) | 2,793 | 2,844 | 2,311 | ||||||||||||||||||||
Adjustments (pre-tax items) | |||||||||||||||||||||||
Valuation of Visa total return swap | 17 | 37 | 22 | ||||||||||||||||||||
Fifth Third Foundation contribution | 15 | - | - | ||||||||||||||||||||
HSA disposition gain | (60) | - | - | ||||||||||||||||||||
Branch and non-branch real estate charges | - | - | 19 | ||||||||||||||||||||
Restructuring severance expense | - | - | 19 | ||||||||||||||||||||
Adjustments, after-tax (t)(a) | (21) | 28 | 46 | ||||||||||||||||||||
Noninterest income (u) | 836 | 741 | 722 | ||||||||||||||||||||
Valuation of Visa total return swap | 17 | 37 | 22 | ||||||||||||||||||||
HSA disposition gain | (60) | - | - | ||||||||||||||||||||
Branch and non-branch real estate charges | - | - | 10 | ||||||||||||||||||||
Adjusted noninterest income (v) | 793 | 778 | 754 | ||||||||||||||||||||
Noninterest expense (w) | 1,172 | 1,153 | 1,161 | ||||||||||||||||||||
Fifth Third Foundation contribution | (15) | - | - | ||||||||||||||||||||
Branch and non-branch real estate charges | - | - | (9) | ||||||||||||||||||||
Restructuring severance expense | - | - | (19) | ||||||||||||||||||||
Adjusted noninterest expense (x) | 1,157 | 1,153 | 1,133 | ||||||||||||||||||||
Adjusted net income (r) + (t) | 683 | 737 | 627 | ||||||||||||||||||||
Adjusted net income (annualized) (y) | 2,710 | 2,956 | 2,494 | ||||||||||||||||||||
Adjusted tangible net income available to common shareholders (h) + (t) | 672 | 710 | 617 | ||||||||||||||||||||
Adjusted tangible net income available to common shareholders (annualized) (z) | 2,666 | 2,848 | 2,455 | ||||||||||||||||||||
Average assets (aa) | $205,449 | $206,353 | $202,533 | ||||||||||||||||||||
Return on average tangible common equity (i) / (j) | 16.9 | % | 16.6 | % | 13.8 | % | |||||||||||||||||
Return on average tangible common equity excluding AOCI (i) / (k) | 19.3 | % | 18.9 | % | 16.7 | % | |||||||||||||||||
Adjusted return on average tangible common equity, including AOCI (z) / (j) | 16.4 | % | 17.3 | % | 14.9 | % | |||||||||||||||||
Adjusted return on average tangible common equity, excluding AOCI (z) / (k) | 18.7 | % | 19.7 | % | 18.1 | % | |||||||||||||||||
Return on average assets (s) / (aa) | 1.36 | % | 1.38 | % | 1.14 | % | |||||||||||||||||
Adjusted return on average assets (y) / (aa) | 1.32 | % | 1.43 | % | 1.23 | % | |||||||||||||||||
Efficiency ratio (FTE) (w) / [(a) + (u)] | 57.8 | % | 59.1 | % | 61.3 | % | |||||||||||||||||
Adjusted efficiency ratio (x) / [(a) + (v)] | 58.3 | % | 58.0 | % | 58.8 | % | |||||||||||||||||
Total revenue (FTE) (a) + (u) | $2,028 | $1,952 | $1,895 | ||||||||||||||||||||
Pre-provision net revenue (PPNR) (a) + (u) - (w) | $856 | $799 | $734 | ||||||||||||||||||||
Adjusted pre-provision net revenue (PPNR) (a) + (v) - (x) | $828 | $836 | $794 | ||||||||||||||||||||
Totals may not foot due to rounding; (a) Assumes a 23% tax rate | |||||||||||||||||||||||
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||||||||
Segment Presentation | |||||||||||||||||||||||
$ in millions | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
For the three months ended September 30, 2021 | Commercial Banking | Branch Banking(b) | Consumer Lending(c) | Wealth and Asset Management | Other/ Eliminations | Total | |||||||||||||||||
Net interest income (FTE)(a) | $371 | $309 | $145 | $22 | $345 | $1,192 | |||||||||||||||||
Benefit from (provision for) credit losses | 242 | (13) | 2 | — | (189) | 42 | |||||||||||||||||
Net interest income after benefit from (provision for) credit losses | 613 | 296 | 147 | 22 | 156 | 1,234 | |||||||||||||||||
Noninterest income | 362 | 229 | 84 | 143 | 18 | 836 | |||||||||||||||||
Noninterest expense | (406) | (463) | (158) | (134) | (11) | (1,172) | |||||||||||||||||
Income before income taxes | 569 | 62 | 73 | 31 | 163 | 898 | |||||||||||||||||
Applicable income tax expense(a) | (112) | (14) | (15) | (7) | (46) | (194) | |||||||||||||||||
Net income | $457 | $48 | $58 | $24 | $117 | $704 | |||||||||||||||||
For the three months ended June 30, 2021 | Commercial Banking | Branch Banking(b) | Consumer Lending(c) | Wealth and Asset Management | Other/ Eliminations | Total | |||||||||||||||||
Net interest income (FTE)(a) | $378 | $301 | $142 | $21 | $369 | $1,211 | |||||||||||||||||
Benefit from (provision for) credit losses | 151 | (25) | — | — | (11) | 115 | |||||||||||||||||
Net interest income after benefit from (provision for) credit losses | 529 | 276 | 142 | 21 | 358 | 1,326 | |||||||||||||||||
Noninterest income | 355 | 224 | 63 | 143 | (44) | 741 | |||||||||||||||||
Noninterest expense | (399) | (450) | (163) | (131) | (10) | (1,153) | |||||||||||||||||
Income before income taxes | 485 | 50 | 42 | 33 | 304 | 914 | |||||||||||||||||
Applicable income tax expense(a) | (92) | (10) | (9) | (7) | (87) | (205) | |||||||||||||||||
Net income | $393 | $40 | $33 | $26 | $217 | $709 | |||||||||||||||||
For the three months ended March 31, 2021 | Commercial Banking | Branch Banking(b) | Consumer Lending(c) | Wealth and Asset Management | Other/ Eliminations | Total | |||||||||||||||||
Net interest income (FTE)(a) | $367 | $295 | $128 | $21 | $368 | $1,179 | |||||||||||||||||
Benefit from (provision for) credit losses | 76 | (41) | (8) | 1 | 145 | 173 | |||||||||||||||||
Net interest income after benefit from (provision for) credit losses | 443 | 254 | 120 | 22 | 513 | 1,352 | |||||||||||||||||
Noninterest income | 361 | 204 | 82 | 138 | (36) | 749 | |||||||||||||||||
Noninterest expense | (420) | (489) | (161) | (135) | (10) | (1,215) | |||||||||||||||||
Income (loss) before income taxes | 384 | (31) | 41 | 25 | 467 | 886 | |||||||||||||||||
Applicable income tax (expense) benefit(a) | (72) | 7 | (9) | (5) | (113) | (192) | |||||||||||||||||
Net income (loss) | $312 | $(24) | $32 | $20 | $354 | $694 | |||||||||||||||||
For the three months ended December 31, 2020 | Commercial Banking | Branch Banking(b) | Consumer Lending(c) | Wealth and Asset Management | Other/ Eliminations | Total | |||||||||||||||||
Net interest income (FTE)(a) | $397 | $293 | $102 | $23 | $370 | $1,185 | |||||||||||||||||
Benefit from (provision for) credit losses | (212) | (49) | (9) | (2) | 285 | 13 | |||||||||||||||||
Net interest income after benefit from (provision for) credit losses | 185 | 244 | 93 | 21 | 655 | 1,198 | |||||||||||||||||
Noninterest income | 404 | 196 | 22 | 136 | 29 | 787 | |||||||||||||||||
Noninterest expense | (427) | (471) | (135) | (131) | (72) | (1,236) | |||||||||||||||||
Income (loss) before income taxes | 162 | (31) | (20) | 26 | 612 | 749 | |||||||||||||||||
Applicable income tax (expense) benefit(a) | (24) | 6 | 4 | (5) | (126) | (145) | |||||||||||||||||
Net income (loss) | $138 | $(25) | $(16) | $21 | $486 | $604 | |||||||||||||||||
For the three months ended September 30, 2020 | Commercial Banking | Branch Banking(b) | Consumer Lending(c) | Wealth and Asset Management | Other/ Eliminations | Total | |||||||||||||||||
Net interest income (FTE)(a) | $435 | $355 | $98 | $28 | $257 | $1,173 | |||||||||||||||||
Benefit from (provision for) credit losses | (337) | (68) | (2) | — | 422 | 15 | |||||||||||||||||
Net interest income after benefit from (provision for) credit losses | 98 | 287 | 96 | 28 | 679 | 1,188 | |||||||||||||||||
Noninterest income | 318 | 192 | 73 | 132 | 7 | 722 | |||||||||||||||||
Noninterest expense | (411) | (460) | (137) | (133) | (20) | (1,161) | |||||||||||||||||
Income before income taxes | 5 | 19 | 32 | 27 | 666 | 749 | |||||||||||||||||
Applicable income tax (expense) benefit(a) | 7 | (4) | (7) | (6) | (158) | (168) | |||||||||||||||||
Net income | $12 | $15 | $25 | $21 | $508 | $581 | |||||||||||||||||
(a) Includes taxable equivalent adjustments of $3 million for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020. | |||||||||||||||||||||||
(b) Branch Banking provides a full range of deposit and loan and lease products to individuals and small businesses through full-service banking centers. | |||||||||||||||||||||||
(c) Consumer Lending includes the Bancorp's residential mortgage, home equity, automobile and other indirect lending activities. |