Key Financial Data | Key Highlights | |||||||||||||||||||||||||
$ millions for all balance sheet and income statement items | ||||||||||||||||||||||||||
2Q22 | 1Q22 | 2Q21 | Select Business Highlights: •Generated consumer household growth of 2% compared to 2Q21 •Announced stress capital buffer requirement of 2.5% (regulatory minimum) •Closed acquisition of Dividend Finance, a national point-of-sale consumer lender •Announced $100 billion environmental and social finance target to be achieved through 2030 Select Financial Highlights: •ROTCE(a) of 17.5%; adjusted ROTCE(a) of 15.2% excl. AOCI •Compared to 2Q21, PPNR(a) increased 13% (adjusted PPNR(a) increased 11%) •Efficiency ratio(a) of 55%, a 4 point improvement from 2Q21 •Net interest income(a) increased 12% compared to 1Q22; NIM(a) up 33 basis points compared to 1Q22 •ACL of 1.85%, an increase of 5 bps from 1Q22 (includes 4 bps from Dividend Finance); Net charge-off ratio of 0.21% and NPA ratio of 0.47% | |||||||||||||||||||||||
Income Statement Data | ||||||||||||||||||||||||||
Net income available to common shareholders | $526 | $474 | $674 | |||||||||||||||||||||||
Net interest income (U.S. GAAP) | 1,339 | 1,195 | 1,208 | |||||||||||||||||||||||
Net interest income (FTE)(a) | 1,342 | 1,198 | 1,211 | |||||||||||||||||||||||
Noninterest income | 676 | 684 | 741 | |||||||||||||||||||||||
Noninterest expense | 1,112 | 1,222 | 1,153 | |||||||||||||||||||||||
Per Share Data | ||||||||||||||||||||||||||
Earnings per share, basic | $0.76 | $0.69 | $0.95 | |||||||||||||||||||||||
Earnings per share, diluted | 0.76 | 0.68 | 0.94 | |||||||||||||||||||||||
Book value per share | 24.56 | 26.33 | 29.57 | |||||||||||||||||||||||
Tangible book value per share(a) | 17.10 | 19.54 | 23.34 | |||||||||||||||||||||||
Balance Sheet & Credit Quality | ||||||||||||||||||||||||||
Average portfolio loans and leases | $117,693 | $113,467 | $108,534 | |||||||||||||||||||||||
Average deposits | 162,890 | 168,662 | 162,619 | |||||||||||||||||||||||
Net charge-off ratio(b) | 0.21 | % | 0.12 | % | 0.16 | % | ||||||||||||||||||||
Nonperforming asset ratio(c) | 0.47 | 0.49 | 0.61 | |||||||||||||||||||||||
Financial Ratios | ||||||||||||||||||||||||||
Return on average assets | 1.09 | % | 0.96 | % | 1.38 | % | ||||||||||||||||||||
Return on average common equity | 12.3 | 10.0 | 13.0 | |||||||||||||||||||||||
Return on average tangible common equity(a) | 17.5 | 13.4 | 16.6 | |||||||||||||||||||||||
CET1 capital(d)(e) | 8.96 | 9.31 | 10.37 | |||||||||||||||||||||||
Net interest margin(a) | 2.92 | 2.59 | 2.63 | |||||||||||||||||||||||
Efficiency(a) | 55.1 | 64.9 | 59.1 | |||||||||||||||||||||||
Other than the Quarterly Financial Review tables beginning on page 14, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Regulation S-K that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis. | ||||||||||||||||||||||||||
CEO Commentary |
Income Statement Highlights | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except per share data) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
June | March | June | ||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2021 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Condensed Statements of Income | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income (NII)(a) | $1,342 | $1,198 | $1,211 | 12% | 11% | |||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) credit losses | 179 | 45 | (115) | 298% | NM | |||||||||||||||||||||||||||||||||||||||
Noninterest income | 676 | 684 | 741 | (1)% | (9)% | |||||||||||||||||||||||||||||||||||||||
Noninterest expense | 1,112 | 1,222 | 1,153 | (9)% | (4)% | |||||||||||||||||||||||||||||||||||||||
Income before income taxes(a) | $727 | $615 | $914 | 18% | (20)% | |||||||||||||||||||||||||||||||||||||||
Taxable equivalent adjustment | $3 | $3 | $3 | — | — | |||||||||||||||||||||||||||||||||||||||
Applicable income tax expense | 162 | 118 | 202 | 37% | (20)% | |||||||||||||||||||||||||||||||||||||||
Net income | $562 | $494 | $709 | 14% | (21)% | |||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | 36 | 20 | 35 | 80% | 3% | |||||||||||||||||||||||||||||||||||||||
Net income available to common shareholders | $526 | $474 | $674 | 11% | (22)% | |||||||||||||||||||||||||||||||||||||||
Earnings per share, diluted | $0.76 | $0.68 | $0.94 | 12% | (19)% | |||||||||||||||||||||||||||||||||||||||
Diluted earnings per share impact of certain item(s) - 2Q22 | |||||||||||||||||
(after-tax impact(f); $ in millions, except per share data) | |||||||||||||||||
Valuation of Visa total return swap (noninterest income) | $(14) | ||||||||||||||||
Business disposition charges (noninterest income) | (5) | ||||||||||||||||
After-tax impact(f) of certain items | $(19) | ||||||||||||||||
Diluted earnings per share impact of certain item(s)1 | $(0.03) | ||||||||||||||||
1Diluted earnings per share impact reflects 694.805 million average diluted shares outstanding | |||||||||||||||||
Net Interest Income | ||||||||||||||||||||||||||||||||||||||||||||
(FTE; $ in millions)(a) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
June | March | June | ||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2021 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | $1,467 | $1,292 | $1,326 | 14% | 11% | |||||||||||||||||||||||||||||||||||||||
Interest expense | 125 | 94 | 115 | 33% | 9% | |||||||||||||||||||||||||||||||||||||||
Net interest income (NII) | $1,342 | $1,198 | $1,211 | 12% | 11% | |||||||||||||||||||||||||||||||||||||||
Average Yield/Rate Analysis | bps Change | |||||||||||||||||||||||||||||||||||||||||||
Yield on interest-earning assets | 3.19 | % | 2.79 | % | 2.88 | % | 40 | 31 | ||||||||||||||||||||||||||||||||||||
Rate paid on interest-bearing liabilities | 0.43 | % | 0.33 | % | 0.40 | % | 10 | 3 | ||||||||||||||||||||||||||||||||||||
Ratios | ||||||||||||||||||||||||||||||||||||||||||||
Net interest rate spread | 2.76 | % | 2.46 | % | 2.48 | % | 30 | 28 | ||||||||||||||||||||||||||||||||||||
Net interest margin (NIM) | 2.92 | % | 2.59 | % | 2.63 | % | 33 | 29 | ||||||||||||||||||||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | |||||||||||||||||||||||||||||||||
June | March | June | |||||||||||||||||||||||||||||||||
2022 | 2022 | 2021 | Seq | Yr/Yr | |||||||||||||||||||||||||||||||
Noninterest Income | |||||||||||||||||||||||||||||||||||
Service charges on deposits | $154 | $152 | $149 | 1% | 3% | ||||||||||||||||||||||||||||||
Commercial banking revenue | 137 | 135 | 160 | 1% | (14)% | ||||||||||||||||||||||||||||||
Mortgage banking net revenue | 31 | 52 | 64 | (40)% | (52)% | ||||||||||||||||||||||||||||||
Wealth and asset management revenue | 140 | 149 | 145 | (6)% | (3)% | ||||||||||||||||||||||||||||||
Card and processing revenue | 105 | 97 | 102 | 8% | 3% | ||||||||||||||||||||||||||||||
Leasing business revenue | 56 | 62 | 61 | (10)% | (8)% | ||||||||||||||||||||||||||||||
Other noninterest income | 85 | 52 | 49 | 63% | 73% | ||||||||||||||||||||||||||||||
Securities (losses) gains, net | (32) | (14) | 10 | 129% | NM | ||||||||||||||||||||||||||||||
Securities (losses) gains, net - non-qualifying hedges | |||||||||||||||||||||||||||||||||||
on mortgage servicing rights | — | (1) | 1 | (100)% | (100)% | ||||||||||||||||||||||||||||||
Total noninterest income | $676 | $684 | $741 | (1)% | (9)% | ||||||||||||||||||||||||||||||
Noninterest Income excluding certain items | |||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | ||||||||||||||||||||||||||||
June | March | June | |||||||||||||||||||||||||||
2022 | 2022 | 2021 | |||||||||||||||||||||||||||
Noninterest Income excluding certain items | |||||||||||||||||||||||||||||
Noninterest income (U.S. GAAP) | $676 | $684 | $741 | ||||||||||||||||||||||||||
Valuation of Visa total return swap | 18 | 11 | 37 | ||||||||||||||||||||||||||
Business disposition charges | 6 | — | — | ||||||||||||||||||||||||||
Securities losses/(gains), net | 32 | 14 | (10) | ||||||||||||||||||||||||||
Noninterest income excluding certain items(a) | $732 | $709 | $768 | ||||||||||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
June | March | June | ||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2021 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | $584 | $711 | $638 | (18)% | (8)% | |||||||||||||||||||||||||||||||||||||||
Net occupancy expense | 75 | 77 | 77 | (3)% | (3)% | |||||||||||||||||||||||||||||||||||||||
Technology and communications | 98 | 101 | 94 | (3)% | 4% | |||||||||||||||||||||||||||||||||||||||
Equipment expense | 36 | 36 | 34 | — | 6% | |||||||||||||||||||||||||||||||||||||||
Card and processing expense | 20 | 19 | 20 | 5% | — | |||||||||||||||||||||||||||||||||||||||
Leasing business expense | 31 | 32 | 33 | (3)% | (6)% | |||||||||||||||||||||||||||||||||||||||
Marketing expense | 28 | 24 | 20 | 17% | 40% | |||||||||||||||||||||||||||||||||||||||
Other noninterest expense | 240 | 222 | 237 | 8% | 1% | |||||||||||||||||||||||||||||||||||||||
Total noninterest expense | $1,112 | $1,222 | $1,153 | (9)% | (4)% | |||||||||||||||||||||||||||||||||||||||
Average Interest-Earning Assets | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
June | March | June | ||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2021 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Average Portfolio Loans and Leases | ||||||||||||||||||||||||||||||||||||||||||||
Commercial loans and leases: | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans | $55,460 | $52,554 | $48,773 | 6% | 14% | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | 10,710 | 10,521 | 10,459 | 2% | 2% | |||||||||||||||||||||||||||||||||||||||
Commercial construction loans | 5,356 | 5,371 | 6,043 | — | (11)% | |||||||||||||||||||||||||||||||||||||||
Commercial leases | 2,839 | 2,942 | 3,174 | (4)% | (11)% | |||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases | $74,365 | $71,388 | $68,449 | 4% | 9% | |||||||||||||||||||||||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | $17,363 | $16,501 | $15,883 | 5% | 9% | |||||||||||||||||||||||||||||||||||||||
Home equity | 3,895 | 4,009 | 4,674 | (3)% | (17)% | |||||||||||||||||||||||||||||||||||||||
Indirect secured consumer loans | 17,241 | 17,136 | 14,702 | 1% | 17% | |||||||||||||||||||||||||||||||||||||||
Credit card | 1,704 | 1,691 | 1,770 | 1% | (4)% | |||||||||||||||||||||||||||||||||||||||
Other consumer loans | 3,125 | 2,742 | 3,056 | 14% | 2% | |||||||||||||||||||||||||||||||||||||||
Total consumer loans | $43,328 | $42,079 | $40,085 | 3% | 8% | |||||||||||||||||||||||||||||||||||||||
Total average portfolio loans and leases | $117,693 | $113,467 | $108,534 | 4% | 8% | |||||||||||||||||||||||||||||||||||||||
Memo: | ||||||||||||||||||||||||||||||||||||||||||||
Average PPP loans | $549 | $1,012 | $4,810 | (46)% | (89)% | |||||||||||||||||||||||||||||||||||||||
Average portfolio commercial and industrial loans - excl. PPP loans | $54,911 | $51,542 | $43,963 | 7% | 25% | |||||||||||||||||||||||||||||||||||||||
Average Loans and Leases Held for Sale | ||||||||||||||||||||||||||||||||||||||||||||
Commercial loans and leases held for sale | $7 | $18 | $52 | (61)% | (87)% | |||||||||||||||||||||||||||||||||||||||
Consumer loans held for sale | 2,536 | 3,677 | 5,857 | (31)% | (57)% | |||||||||||||||||||||||||||||||||||||||
Total average loans and leases held for sale | $2,543 | $3,695 | $5,909 | (31)% | (57)% | |||||||||||||||||||||||||||||||||||||||
Total average loans and leases | $120,236 | $117,162 | $114,443 | 3% | 5% | |||||||||||||||||||||||||||||||||||||||
Securities (taxable and tax-exempt) | $54,538 | $42,422 | $36,917 | 29% | 48% | |||||||||||||||||||||||||||||||||||||||
Other short-term investments | 9,632 | 28,310 | 33,558 | (66)% | (71)% | |||||||||||||||||||||||||||||||||||||||
Total average interest-earning assets | $184,406 | $187,894 | $184,918 | (2)% | — | |||||||||||||||||||||||||||||||||||||||
Average Deposits | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
June | March | June | ||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2021 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Average Deposits | ||||||||||||||||||||||||||||||||||||||||||||
Demand | $62,555 | $64,212 | $61,994 | (3)% | 1% | |||||||||||||||||||||||||||||||||||||||
Interest checking | 44,349 | 48,659 | 45,307 | (9)% | (2)% | |||||||||||||||||||||||||||||||||||||||
Savings | 23,708 | 22,772 | 20,494 | 4% | 16% | |||||||||||||||||||||||||||||||||||||||
Money market | 29,284 | 30,263 | 30,844 | (3)% | (5)% | |||||||||||||||||||||||||||||||||||||||
Foreign office(g) | 139 | 126 | 140 | 10% | (1)% | |||||||||||||||||||||||||||||||||||||||
Total transaction deposits | $160,035 | $166,032 | $158,779 | (4)% | 1% | |||||||||||||||||||||||||||||||||||||||
CDs $250,000 or less | 2,193 | 2,376 | 3,514 | (8)% | (38)% | |||||||||||||||||||||||||||||||||||||||
Total core deposits | $162,228 | $168,408 | $162,293 | (4)% | — | |||||||||||||||||||||||||||||||||||||||
CDs over $250,000 | 662 | 254 | 326 | 161% | 103% | |||||||||||||||||||||||||||||||||||||||
Total average deposits | $162,890 | $168,662 | $162,619 | (3)% | — | |||||||||||||||||||||||||||||||||||||||
Average Wholesale Funding | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||||||||||||||||||||||||||||||||||||||
June | March | June | ||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2021 | Seq | Yr/Yr | ||||||||||||||||||||||||||||||||||||||||
Average Wholesale Funding | ||||||||||||||||||||||||||||||||||||||||||||
CDs over $250,000 | $662 | $254 | $326 | 161% | 103% | |||||||||||||||||||||||||||||||||||||||
Federal funds purchased | 392 | 259 | 346 | 51% | 13% | |||||||||||||||||||||||||||||||||||||||
Other short-term borrowings | 3,571 | 890 | 1,097 | 301% | 226% | |||||||||||||||||||||||||||||||||||||||
Long-term debt | 11,164 | 11,165 | 13,883 | — | (20)% | |||||||||||||||||||||||||||||||||||||||
Total average wholesale funding | $15,789 | $12,568 | $15,652 | 26% | 1% | |||||||||||||||||||||||||||||||||||||||
Credit Quality Summary | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | As of and For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
June | March | December | September | June | ||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||||||||||||||||||||||||||
Total nonaccrual portfolio loans and leases (NPLs) | $539 | $534 | $498 | $528 | $621 | |||||||||||||||||||||||||||||||||||||||
Repossessed property | 6 | 5 | 5 | 4 | 5 | |||||||||||||||||||||||||||||||||||||||
OREO | 14 | 27 | 24 | 27 | 31 | |||||||||||||||||||||||||||||||||||||||
Total nonperforming portfolio loans and leases and OREO (NPAs) | $559 | $566 | $527 | $559 | $657 | |||||||||||||||||||||||||||||||||||||||
NPL ratio(h) | 0.45 | % | 0.46 | % | 0.44 | % | 0.49 | % | 0.58 | % | ||||||||||||||||||||||||||||||||||
NPA ratio(c) | 0.47 | % | 0.49 | % | 0.47 | % | 0.52 | % | 0.61 | % | ||||||||||||||||||||||||||||||||||
Total loans and leases 30-89 days past due (accrual) | $294 | $288 | $254 | $267 | $281 | |||||||||||||||||||||||||||||||||||||||
Total loans and leases 90 days past due (accrual) | 39 | 50 | 117 | 92 | 83 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses (ALLL), beginning | $1,908 | $1,892 | $1,954 | $2,033 | $2,208 | |||||||||||||||||||||||||||||||||||||||
Total net losses charged-off | (62) | (34) | (38) | (21) | (44) | |||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) loan and lease losses | 168 | 50 | (24) | (58) | (131) | |||||||||||||||||||||||||||||||||||||||
ALLL, ending | $2,014 | $1,908 | $1,892 | $1,954 | $2,033 | |||||||||||||||||||||||||||||||||||||||
Reserve for unfunded commitments, beginning | $177 | $182 | $205 | $189 | $173 | |||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) the reserve for unfunded commitments | 11 | (5) | (23) | 16 | 16 | |||||||||||||||||||||||||||||||||||||||
Reserve for unfunded commitments, ending | $188 | $177 | $182 | $205 | $189 | |||||||||||||||||||||||||||||||||||||||
Total allowance for credit losses (ACL) | $2,202 | $2,085 | $2,074 | $2,159 | $2,222 | |||||||||||||||||||||||||||||||||||||||
ACL ratios: | ||||||||||||||||||||||||||||||||||||||||||||
As a % of portfolio loans and leases | 1.85 | % | 1.80 | % | 1.85 | % | 2.00 | % | 2.06 | % | ||||||||||||||||||||||||||||||||||
As a % of nonperforming portfolio loans and leases | 408 | % | 391 | % | 416 | % | 409 | % | 358 | % | ||||||||||||||||||||||||||||||||||
As a % of nonperforming portfolio assets | 394 | % | 369 | % | 394 | % | 386 | % | 338 | % | ||||||||||||||||||||||||||||||||||
ALLL as a % of portfolio loans and leases | 1.70 | % | 1.65 | % | 1.69 | % | 1.81 | % | 1.89 | % | ||||||||||||||||||||||||||||||||||
Total losses charged-off | $(90) | $(64) | $(77) | $(56) | $(103) | |||||||||||||||||||||||||||||||||||||||
Total recoveries of losses previously charged-off | 28 | 30 | 39 | 35 | 59 | |||||||||||||||||||||||||||||||||||||||
Total net losses charged-off | $(62) | $(34) | $(38) | $(21) | $(44) | |||||||||||||||||||||||||||||||||||||||
Net charge-off ratio (NCO ratio)(b) | 0.21 | % | 0.12 | % | 0.14 | % | 0.08 | % | 0.16 | % | ||||||||||||||||||||||||||||||||||
Commercial NCO ratio | 0.19 | % | 0.05 | % | 0.10 | % | 0.03 | % | 0.10 | % | ||||||||||||||||||||||||||||||||||
Consumer NCO ratio | 0.24 | % | 0.25 | % | 0.21 | % | 0.16 | % | 0.26 | % | ||||||||||||||||||||||||||||||||||
Capital Position | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of and For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
June | March | December | September | June | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Capital Position | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average total Bancorp shareholders' equity as a % of average assets | 9.35 | % | 10.23 | % | 10.71% | 11.16% | 11.11 | % | ||||||||||||||||||||||||||||||||||||||||||
Tangible equity(a) | 8.05 | % | 7.98 | % | 7.97% | 8.06% | 8.35 | % | ||||||||||||||||||||||||||||||||||||||||||
Tangible common equity (excluding AOCI)(a) | 7.01 | % | 6.96 | % | 6.94% | 7.01% | 7.28 | % | ||||||||||||||||||||||||||||||||||||||||||
Tangible common equity (including AOCI)(a) | 5.82 | % | 6.48 | % | 7.47% | 7.74% | 8.18 | % | ||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Ratios(d)(e) | ||||||||||||||||||||||||||||||||||||||||||||||||||
CET1 capital | 8.96 | % | 9.31 | % | 9.54% | 9.86% | 10.37 | % | ||||||||||||||||||||||||||||||||||||||||||
Tier 1 risk-based capital | 10.24 | % | 10.63 | % | 10.91% | 11.28% | 11.83 | % | ||||||||||||||||||||||||||||||||||||||||||
Total risk-based capital | 12.48 | % | 12.93 | % | 13.42% | 13.94% | 14.60 | % | ||||||||||||||||||||||||||||||||||||||||||
Leverage | 8.30 | % | 8.32 | % | 8.27% | 8.41% | 8.55 | % | ||||||||||||||||||||||||||||||||||||||||||
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) | June | March | June | June | June | ||||||||||||||||||||||||
2022 | 2022 | 2021 | Seq | Yr/Yr | 2022 | 2021 | Yr/Yr | ||||||||||||||||||||||
Income Statement Data | |||||||||||||||||||||||||||||
Net interest income | $1,339 | $1,195 | $1,208 | 12% | 11% | $2,534 | $2,385 | 6% | |||||||||||||||||||||
Net interest income (FTE)(a) | 1,342 | 1,198 | 1,211 | 12% | 11% | 2,541 | 2,391 | 6% | |||||||||||||||||||||
Noninterest income | 676 | 684 | 741 | (1%) | (9%) | 1,359 | 1,490 | (9%) | |||||||||||||||||||||
Total revenue (FTE)(a) | 2,018 | 1,882 | 1,952 | 7% | 3% | 3,900 | 3,881 | — | |||||||||||||||||||||
Provision for (benefit from) credit losses | 179 | 45 | (115) | 298% | NM | 224 | (288) | NM | |||||||||||||||||||||
Noninterest expense | 1,112 | 1,222 | 1,153 | (9%) | (4%) | 2,334 | 2,369 | (1%) | |||||||||||||||||||||
Net income | 562 | 494 | 709 | 14% | (21%) | 1,056 | 1,403 | (25%) | |||||||||||||||||||||
Net income available to common shareholders | 526 | 474 | 674 | 11% | (22%) | 1,000 | 1,348 | (26%) | |||||||||||||||||||||
Earnings Per Share Data | |||||||||||||||||||||||||||||
Net income allocated to common shareholders | $525 | $473 | $673 | 11% | (22%) | $999 | $1,344 | (26%) | |||||||||||||||||||||
Average common shares outstanding (in thousands): | |||||||||||||||||||||||||||||
Basic | 689,019 | 687,538 | 708,833 | — | (3%) | 688,282 | 711,617 | (3%) | |||||||||||||||||||||
Diluted | 694,805 | 696,242 | 718,085 | — | (3%) | 695,520 | 720,740 | (3%) | |||||||||||||||||||||
Earnings per share, basic | $0.76 | $0.69 | $0.95 | 10% | (20%) | $1.45 | $1.89 | (23%) | |||||||||||||||||||||
Earnings per share, diluted | 0.76 | 0.68 | 0.94 | 12% | (19%) | 1.44 | 1.87 | (23%) | |||||||||||||||||||||
Common Share Data | |||||||||||||||||||||||||||||
Cash dividends per common share | $0.30 | $0.30 | $0.27 | — | 11% | $0.60 | $0.54 | 11% | |||||||||||||||||||||
Book value per share | 24.56 | 26.33 | 29.57 | (7%) | (17%) | 24.56 | 29.57 | (17%) | |||||||||||||||||||||
Market value per share | 33.60 | 43.04 | 38.23 | (22%) | (12%) | 33.60 | 38.23 | (12%) | |||||||||||||||||||||
Common shares outstanding (in thousands) | 686,152 | 685,905 | 703,740 | — | (2%) | 686,152 | 703,740 | (2%) | |||||||||||||||||||||
Market capitalization | $23,055 | $29,521 | $26,904 | (22%) | (14%) | $23,055 | $26,904 | (14%) | |||||||||||||||||||||
Financial Ratios | |||||||||||||||||||||||||||||
Return on average assets | 1.09 | % | 0.96 | % | 1.38 | % | 13 | (29) | 1.03 | % | 1.38 | % | (35) | ||||||||||||||||
Return on average common equity | 12.3 | % | 10.0 | % | 13.0 | % | 230 | (70) | 11.1 | % | 13.1 | % | (200) | ||||||||||||||||
Return on average tangible common equity(a) | 17.5 | % | 13.4 | % | 16.6 | % | 410 | 90 | 15.3 | % | 16.7 | % | (140) | ||||||||||||||||
Noninterest income as a percent of total revenue(a) | 33 | % | 36 | % | 38 | % | (300) | (500) | 35 | % | 38 | % | (300) | ||||||||||||||||
Dividend payout | 39.5 | % | 43.5 | % | 28.4 | % | (400) | NM | 41.4 | % | 28.6 | % | NM | ||||||||||||||||
Average total Bancorp shareholders’ equity as a percent of average assets | 9.35 | % | 10.23 | % | 11.11 | % | (88) | (176) | 9.79 | % | 11.18 | % | (139) | ||||||||||||||||
Tangible common equity(a) | 7.01 | % | 6.96 | % | 7.28 | % | 5 | (27) | 7.01 | % | 7.28 | % | (27) | ||||||||||||||||
Net interest margin (FTE)(a) | 2.92 | % | 2.59 | % | 2.63 | % | 33 | 29 | 2.75 | % | 2.62 | % | 13 | ||||||||||||||||
Efficiency (FTE)(a) | 55.1 | % | 64.9 | % | 59.1 | % | (980) | (400) | 59.8 | % | 61.0 | % | (120) | ||||||||||||||||
Effective tax rate | 22.4 | % | 19.2 | % | 22.1 | % | 320 | 30 | 20.9 | % | 21.8 | % | (90) | ||||||||||||||||
Credit Quality | |||||||||||||||||||||||||||||
Net losses charged-off | $62 | $34 | $44 | 82 | % | 41 | % | $96 | $115 | (17 | %) | ||||||||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.21 | % | 0.12 | % | 0.16 | % | 9 | 5 | 0.17 | % | 0.21 | % | (4) | ||||||||||||||||
ALLL as a percent of portfolio loans and leases | 1.70 | % | 1.65 | % | 1.89 | % | 5 | (19) | 1.70 | % | 1.89 | % | (19) | ||||||||||||||||
ACL as a percent of portfolio loans and leases(g) | 1.85 | % | 1.80 | % | 2.06 | % | 5 | (21) | 1.85 | % | 2.06 | % | (21) | ||||||||||||||||
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO | 0.47 | % | 0.49 | % | 0.61 | % | (2) | (14) | 0.47 | % | 0.61 | % | (14) | ||||||||||||||||
Average Balances | |||||||||||||||||||||||||||||
Loans and leases, including held for sale | $120,236 | $117,162 | $114,443 | 3% | 5% | $118,708 | $114,074 | 4% | |||||||||||||||||||||
Securities and other short-term investments | 64,170 | 70,732 | 70,475 | (9%) | (9%) | 67,431 | 69,749 | (3%) | |||||||||||||||||||||
Assets | 205,897 | 209,150 | 206,353 | (2%) | — | 207,515 | 205,102 | 1% | |||||||||||||||||||||
Transaction deposits(b) | 160,035 | 166,032 | 158,779 | (4%) | 1% | 163,016 | 156,321 | 4% | |||||||||||||||||||||
Core deposits(c) | 162,228 | 168,408 | 162,293 | (4%) | — | 165,300 | 159,989 | 3% | |||||||||||||||||||||
Wholesale funding(d) | 15,789 | 12,568 | 15,652 | 26% | 1% | 14,188 | 16,626 | (15%) | |||||||||||||||||||||
Bancorp shareholders’ equity | 19,248 | 21,402 | 22,927 | (10%) | (16%) | 20,319 | 22,939 | (11%) | |||||||||||||||||||||
Regulatory Capital Ratios(e)(f) | |||||||||||||||||||||||||||||
CET1 capital | 8.96 | % | 9.31 | % | 10.37 | % | (35) | (141) | 8.96 | % | 10.37 | % | (141) | ||||||||||||||||
Tier 1 risk-based capital | 10.24 | % | 10.63 | % | 11.83 | % | (39) | (159) | 10.24 | % | 11.83 | % | (159) | ||||||||||||||||
Total risk-based capital | 12.48 | % | 12.93 | % | 14.60 | % | (45) | (212) | 12.48 | % | 14.60 | % | (212) | ||||||||||||||||
Leverage | 8.30 | % | 8.32 | % | 8.55 | % | (2) | (25) | 8.30 | % | 8.55 | % | (25) | ||||||||||||||||
Operations | |||||||||||||||||||||||||||||
Banking centers | 1,080 | 1,079 | 1,096 | — | (1%) | 1,080 | 1,096 | (1%) | |||||||||||||||||||||
ATMs | 2,153 | 2,201 | 2,369 | (2%) | (9%) | 2,153 | 2,369 | (9%) | |||||||||||||||||||||
Full-time equivalent employees | 19,119 | 19,247 | 19,402 | (1%) | (1%) | 19,119 | 19,402 | (1%) |
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
$ in millions, except per share data | For the Three Months Ended | |||||||||||||||||||
(unaudited) | June | March | December | September | June | |||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||
Income Statement Data | ||||||||||||||||||||
Net interest income | $1,339 | $1,195 | $1,197 | $1,189 | $1,208 | |||||||||||||||
Net interest income (FTE)(a) | 1,342 | 1,198 | 1,200 | 1,192 | 1,211 | |||||||||||||||
Noninterest income | 676 | 684 | 791 | 836 | 741 | |||||||||||||||
Total revenue (FTE)(a) | 2,018 | 1,882 | 1,991 | 2,028 | 1,952 | |||||||||||||||
Provision for (benefit from) credit losses | 179 | 45 | (47) | (42) | (115) | |||||||||||||||
Noninterest expense | 1,112 | 1,222 | 1,206 | 1,172 | 1,153 | |||||||||||||||
Net income | 562 | 494 | 662 | 704 | 709 | |||||||||||||||
Net income available to common shareholders | 526 | 474 | 627 | 684 | 674 | |||||||||||||||
Earnings Per Share Data | ||||||||||||||||||||
Net income allocated to common shareholders | $525 | $473 | $625 | $683 | $673 | |||||||||||||||
Average common shares outstanding (in thousands): | ||||||||||||||||||||
Basic | 689,019 | 687,538 | 688,370 | 697,457 | 708,833 | |||||||||||||||
Diluted | 694,805 | 696,242 | 697,532 | 706,090 | 718,085 | |||||||||||||||
Earnings per share, basic | $0.76 | $0.69 | $0.91 | $0.98 | $0.95 | |||||||||||||||
Earnings per share, diluted | 0.76 | 0.68 | 0.90 | 0.97 | 0.94 | |||||||||||||||
Common Share Data | ||||||||||||||||||||
Cash dividends per common share | $0.30 | $0.30 | $0.30 | $0.30 | $0.27 | |||||||||||||||
Book value per share | 24.56 | 26.33 | 29.43 | 29.59 | 29.57 | |||||||||||||||
Market value per share | 33.60 | 43.04 | 43.55 | 42.44 | 38.23 | |||||||||||||||
Common shares outstanding (in thousands) | 686,152 | 685,905 | 682,778 | 689,790 | 703,740 | |||||||||||||||
Market capitalization | $23,055 | $29,521 | $29,735 | $29,275 | $26,904 | |||||||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.09 | % | 0.96 | % | 1.25 | % | 1.36 | % | 1.38 | % | ||||||||||
Return on average common equity | 12.3 | % | 10.0 | % | 12.2 | % | 13.0 | % | 13.0 | % | ||||||||||
Return on average tangible common equity(a) | 17.5 | % | 13.4 | % | 16.1 | % | 16.9 | % | 16.6 | % | ||||||||||
Noninterest income as a percent of total revenue(a) | 33 | % | 36 | % | 40 | % | 41 | % | 38 | % | ||||||||||
Dividend payout | 39.5 | % | 43.5 | % | 33.0 | % | 30.6 | % | 28.4 | % | ||||||||||
Average total Bancorp shareholders’ equity as a percent of average assets | 9.35 | % | 10.23 | % | 10.71 | % | 11.16 | % | 11.11 | % | ||||||||||
Tangible common equity(a) | 7.01 | % | 6.96 | % | 6.94 | % | 7.01 | % | 7.28 | % | ||||||||||
Net interest margin (FTE)(a) | 2.92 | % | 2.59 | % | 2.55 | % | 2.59 | % | 2.63 | % | ||||||||||
Efficiency (FTE)(a) | 55.1 | % | 64.9 | % | 60.6 | % | 57.8 | % | 59.1 | % | ||||||||||
Effective tax rate | 22.4 | % | 19.2 | % | 20.1 | % | 21.3 | % | 22.1 | % | ||||||||||
Credit Quality | ||||||||||||||||||||
Net losses charged-off | $62 | $34 | $38 | $21 | $44 | |||||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.21 | % | 0.12 | % | 0.14 | % | 0.08 | % | 0.16 | % | ||||||||||
ALLL as a percent of portfolio loans and leases | 1.70 | % | 1.65 | % | 1.69 | % | 1.81 | % | 1.89 | % | ||||||||||
ACL as a percent of portfolio loans and leases(g) | 1.85 | % | 1.80 | % | 1.85 | % | 2.00 | % | 2.06 | % | ||||||||||
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO | 0.47 | % | 0.49 | % | 0.47 | % | 0.52 | % | 0.61 | % | ||||||||||
Average Balances | ||||||||||||||||||||
Loans and leases, including held for sale | $120,236 | $117,162 | $114,790 | $113,528 | $114,443 | |||||||||||||||
Securities and other short-term investments | 64,170 | 70,732 | 72,255 | 69,273 | 70,475 | |||||||||||||||
Assets | 205,897 | 209,150 | 209,604 | 205,449 | 206,353 | |||||||||||||||
Transaction deposits(b) | 160,035 | 166,032 | 164,673 | 159,404 | 158,779 | |||||||||||||||
Core deposits(c) | 162,228 | 168,408 | 167,277 | 162,341 | 162,293 | |||||||||||||||
Wholesale funding(d) | 15,789 | 12,568 | 13,276 | 13,833 | 15,652 | |||||||||||||||
Bancorp shareholders’ equity | 19,248 | 21,402 | 22,449 | 22,927 | 22,927 | |||||||||||||||
Regulatory Capital Ratios(e)(f) | ||||||||||||||||||||
CET1 capital | 8.96 | % | 9.31 | % | 9.54 | % | 9.86 | % | 10.37 | % | ||||||||||
Tier 1 risk-based capital | 10.24 | % | 10.63 | % | 10.91 | % | 11.28 | % | 11.83 | % | ||||||||||
Total risk-based capital | 12.48 | % | 12.93 | % | 13.42 | % | 13.94 | % | 14.60 | % | ||||||||||
Leverage | 8.30 | % | 8.32 | % | 8.27 | % | 8.41 | % | 8.55 | % | ||||||||||
Operations | ||||||||||||||||||||
Banking centers | 1,080 | 1,079 | 1,117 | 1,100 | 1,096 | |||||||||||||||
ATMs | 2,153 | 2,201 | 2,322 | 2,336 | 2,369 | |||||||||||||||
Full-time equivalent employees | 19,119 | 19,247 | 19,112 | 19,171 | 19,402 |
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||||||||
$ in millions | For the Three Months Ended | % Change | Year to Date | % Change | ||||||||||||||||||||||
(unaudited) | June | March | June | June | June | |||||||||||||||||||||
2022 | 2022 | 2021 | Seq | Yr/Yr | 2022 | 2021 | Yr/Yr | |||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||
Interest and fees on loans and leases | $1,081 | $983 | $1,035 | 10% | 4% | $2,062 | $2,064 | — | ||||||||||||||||||
Interest on securities | 369 | 294 | 279 | 26% | 32% | 663 | 543 | 22% | ||||||||||||||||||
Interest on other short-term investments | 14 | 12 | 9 | 17% | 56% | 27 | 17 | 59% | ||||||||||||||||||
Total interest income | 1,464 | 1,289 | 1,323 | 14% | 11% | 2,752 | 2,624 | 5% | ||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||
Interest on deposits | 25 | 11 | 15 | 127% | 67% | 36 | 36 | — | ||||||||||||||||||
Interest on federal funds purchased | 1 | — | — | NM | NM | 1 | — | NM | ||||||||||||||||||
Interest on other short-term borrowings | 12 | — | — | NM | NM | 13 | 1 | NM | ||||||||||||||||||
Interest on long-term debt | 87 | 83 | 100 | 5% | (13%) | 168 | 202 | (17%) | ||||||||||||||||||
Total interest expense | 125 | 94 | 115 | 33% | 9% | 218 | 239 | (9%) | ||||||||||||||||||
Net Interest Income | 1,339 | 1,195 | 1,208 | 12% | 11% | 2,534 | 2,385 | 6% | ||||||||||||||||||
Provision for (benefit from) credit losses | 179 | 45 | (115) | 298% | NM | 224 | (288) | NM | ||||||||||||||||||
Net Interest Income After Provision for (Benefit from) Credit Losses | 1,160 | 1,150 | 1,323 | 1% | (12%) | 2,310 | 2,673 | (14%) | ||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||
Service charges on deposits | 154 | 152 | 149 | 1% | 3% | 306 | 292 | 5% | ||||||||||||||||||
Commercial banking revenue | 137 | 135 | 160 | 1% | (14%) | 272 | 313 | (13%) | ||||||||||||||||||
Mortgage banking net revenue | 31 | 52 | 64 | (40%) | (52%) | 83 | 149 | (44%) | ||||||||||||||||||
Wealth and asset management revenue | 140 | 149 | 145 | (6%) | (3%) | 289 | 288 | — | ||||||||||||||||||
Card and processing revenue | 105 | 97 | 102 | 8% | 3% | 201 | 196 | 3% | ||||||||||||||||||
Leasing business revenue | 56 | 62 | 61 | (10%) | (8%) | 118 | 148 | (20%) | ||||||||||||||||||
Other noninterest income | 85 | 52 | 49 | 63% | 73% | 138 | 92 | 50% | ||||||||||||||||||
Securities (losses) gains, net | (32) | (14) | 10 | 129% | NM | (47) | 13 | NM | ||||||||||||||||||
Securities (losses) gains, net - non-qualifying hedges on mortgage servicing rights | — | (1) | 1 | (100%) | (100%) | (1) | (1) | — | ||||||||||||||||||
Total noninterest income | 676 | 684 | 741 | (1%) | (9%) | 1,359 | 1,490 | (9%) | ||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||
Compensation and benefits | 584 | 711 | 638 | (18%) | (8%) | 1,295 | 1,343 | (4%) | ||||||||||||||||||
Net occupancy expense | 75 | 77 | 77 | (3%) | (3%) | 152 | 156 | (3%) | ||||||||||||||||||
Technology and communications | 98 | 101 | 94 | (3%) | 4% | 199 | 187 | 6% | ||||||||||||||||||
Equipment expense | 36 | 36 | 34 | — | 6% | 72 | 68 | 6% | ||||||||||||||||||
Card and processing expense | 20 | 19 | 20 | 5% | — | 38 | 50 | (24%) | ||||||||||||||||||
Leasing business expense | 31 | 32 | 33 | (3%) | (6%) | 63 | 68 | (7%) | ||||||||||||||||||
Marketing expense | 28 | 24 | 20 | 17% | 40% | 52 | 43 | 21% | ||||||||||||||||||
Other noninterest expense | 240 | 222 | 237 | 8% | 1% | 463 | 454 | 2% | ||||||||||||||||||
Total noninterest expense | 1,112 | 1,222 | 1,153 | (9%) | (4%) | 2,334 | 2,369 | (1%) | ||||||||||||||||||
Income Before Income Taxes | 724 | 612 | 911 | 18% | (21%) | 1,335 | 1,794 | (26%) | ||||||||||||||||||
Applicable income tax expense | 162 | 118 | 202 | 37% | (20%) | 279 | 391 | (29%) | ||||||||||||||||||
Net Income | 562 | 494 | 709 | 14% | (21%) | 1,056 | 1,403 | (25%) | ||||||||||||||||||
Dividends on preferred stock | 36 | 20 | 35 | 80% | 3% | 56 | 55 | 2% | ||||||||||||||||||
Net Income Available to Common Shareholders | $526 | $474 | $674 | 11% | (22%) | $1,000 | $1,348 | (26%) |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Consolidated Statements of Income | |||||||||||||||||
$ in millions | For the Three Months Ended | ||||||||||||||||
(unaudited) | June | March | December | September | June | ||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | |||||||||||||
Interest Income | |||||||||||||||||
Interest and fees on loans and leases | $1,081 | $983 | $1,000 | $1,014 | $1,035 | ||||||||||||
Interest on securities | 369 | 294 | 281 | 266 | 279 | ||||||||||||
Interest on other short-term investments | 14 | 12 | 13 | 12 | 9 | ||||||||||||
Total interest income | 1,464 | 1,289 | 1,294 | 1,292 | 1,323 | ||||||||||||
Interest Expense | |||||||||||||||||
Interest on deposits | 25 | 11 | 11 | 12 | 15 | ||||||||||||
Interest on other short-term borrowings | 12 | — | — | — | — | ||||||||||||
Interest on long-term debt | 87 | 83 | 86 | 91 | 100 | ||||||||||||
Total interest expense | 125 | 94 | 97 | 103 | 115 | ||||||||||||
Net Interest Income | 1,339 | 1,195 | 1,197 | 1,189 | 1,208 | ||||||||||||
Provision for (benefit from) credit losses | 179 | 45 | (47) | (42) | (115) | ||||||||||||
Net Interest Income After Provision for (Benefit from) Credit Losses | 1,160 | 1,150 | 1,244 | 1,231 | 1,323 | ||||||||||||
Noninterest Income | |||||||||||||||||
Service charges on deposits | 154 | 152 | 156 | 152 | 149 | ||||||||||||
Commercial banking revenue | 137 | 135 | 171 | 152 | 160 | ||||||||||||
Mortgage banking net revenue | 31 | 52 | 35 | 86 | 64 | ||||||||||||
Wealth and asset management revenue | 140 | 149 | 150 | 147 | 145 | ||||||||||||
Card and processing revenue | 105 | 97 | 104 | 102 | 102 | ||||||||||||
Leasing business revenue | 56 | 62 | 74 | 78 | 61 | ||||||||||||
Other noninterest income | 85 | 52 | 120 | 120 | 49 | ||||||||||||
Securities (losses) gains, net | (32) | (14) | (19) | (1) | 10 | ||||||||||||
Securities (losses) gains, net - non-qualifying hedges on mortgage servicing rights | — | (1) | — | — | 1 | ||||||||||||
Total noninterest income | 676 | 684 | 791 | 836 | 741 | ||||||||||||
Noninterest Expense | |||||||||||||||||
Compensation and benefits | 584 | 711 | 655 | 627 | 638 | ||||||||||||
Net occupancy expense | 75 | 77 | 77 | 79 | 77 | ||||||||||||
Technology and communications | 98 | 101 | 103 | 98 | 94 | ||||||||||||
Equipment expense | 36 | 36 | 36 | 34 | 34 | ||||||||||||
Card and processing expense | 20 | 19 | 19 | 19 | 20 | ||||||||||||
Leasing business expense | 31 | 32 | 36 | 33 | 33 | ||||||||||||
Marketing expense | 28 | 24 | 35 | 29 | 20 | ||||||||||||
Other noninterest expense | 240 | 222 | 245 | 253 | 237 | ||||||||||||
Total noninterest expense | 1,112 | 1,222 | 1,206 | 1,172 | 1,153 | ||||||||||||
Income Before Income Taxes | 724 | 612 | 829 | 895 | 911 | ||||||||||||
Applicable income tax expense | 162 | 118 | 167 | 191 | 202 | ||||||||||||
Net Income | 562 | 494 | 662 | 704 | 709 | ||||||||||||
Dividends on preferred stock | 36 | 20 | 35 | 20 | 35 | ||||||||||||
Net Income Available to Common Shareholders | $526 | $474 | $627 | $684 | $674 |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||
$ in millions, except per share data | As of | % Change | |||||||||||||||
(unaudited) | June | March | June | ||||||||||||||
2022 | 2022 | 2021 | Seq | Yr/Yr | |||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $3,437 | $3,049 | $3,285 | 13% | 5% | ||||||||||||
Other short-term investments | 7,419 | 20,529 | 32,409 | (64%) | (77%) | ||||||||||||
Available-for-sale debt and other securities(a) | 52,837 | 48,832 | 38,012 | 8% | 39% | ||||||||||||
Held-to-maturity securities(b) | 5 | 6 | 10 | (17%) | (50%) | ||||||||||||
Trading debt securities | 293 | 324 | 711 | (10%) | (59%) | ||||||||||||
Equity securities | 326 | 358 | 341 | (9%) | (4%) | ||||||||||||
Loans and leases held for sale | 2,542 | 2,616 | 5,730 | (3%) | (56%) | ||||||||||||
Portfolio loans and leases: | |||||||||||||||||
Commercial and industrial loans | 56,095 | 53,909 | 47,564 | 4% | 18% | ||||||||||||
Commercial mortgage loans | 10,748 | 10,694 | 10,347 | 1% | 4% | ||||||||||||
Commercial construction loans | 5,357 | 5,420 | 5,871 | (1%) | (9%) | ||||||||||||
Commercial leases | 2,850 | 2,915 | 3,238 | (2%) | (12%) | ||||||||||||
Total commercial loans and leases | 75,050 | 72,938 | 67,020 | 3% | 12% | ||||||||||||
Residential mortgage loans | 17,566 | 17,144 | 16,131 | 2% | 9% | ||||||||||||
Home equity | 3,906 | 3,916 | 4,545 | — | (14%) | ||||||||||||
Indirect secured consumer loans | 17,017 | 17,424 | 15,192 | (2%) | 12% | ||||||||||||
Credit card | 1,763 | 1,690 | 1,793 | 4% | (2%) | ||||||||||||
Other consumer loans | 3,521 | 2,753 | 3,052 | 28% | 15% | ||||||||||||
Total consumer loans | 43,773 | 42,927 | 40,713 | 2% | 8% | ||||||||||||
Portfolio loans and leases | 118,823 | 115,865 | 107,733 | 3% | 10% | ||||||||||||
Allowance for loan and lease losses | (2,014) | (1,908) | (2,033) | 6% | (1%) | ||||||||||||
Portfolio loans and leases, net | 116,809 | 113,957 | 105,700 | 3% | 11% | ||||||||||||
Bank premises and equipment | 2,118 | 2,102 | 2,073 | 1% | 2% | ||||||||||||
Operating lease equipment | 600 | 622 | 715 | (4%) | (16%) | ||||||||||||
Goodwill | 4,926 | 4,514 | 4,259 | 9% | 16% | ||||||||||||
Intangible assets | 194 | 145 | 117 | 34% | 66% | ||||||||||||
Servicing rights | 1,582 | 1,444 | 818 | 10% | 93% | ||||||||||||
Other assets | 13,694 | 12,961 | 11,210 | 6% | 22% | ||||||||||||
Total Assets | $206,782 | $211,459 | $205,390 | (2%) | 1% | ||||||||||||
Liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Demand | $60,859 | $65,590 | $62,760 | (7%) | (3%) | ||||||||||||
Interest checking | 43,338 | 48,836 | 44,872 | (11%) | (3%) | ||||||||||||
Savings | 23,748 | 23,622 | 20,667 | 1% | 15% | ||||||||||||
Money market | 28,792 | 29,947 | 30,564 | (4%) | (6%) | ||||||||||||
Foreign office | 177 | 115 | 152 | 54% | 16% | ||||||||||||
CDs $250,000 or less | 2,125 | 2,267 | 2,958 | (6%) | (28%) | ||||||||||||
CDs over $250,000 | 2,135 | 234 | 310 | 812% | 589% | ||||||||||||
Total deposits | 161,174 | 170,611 | 162,283 | (6%) | (1%) | ||||||||||||
Federal funds purchased | 711 | 250 | 338 | 184% | 110% | ||||||||||||
Other short-term borrowings | 7,057 | 872 | 1,130 | 709% | 525% | ||||||||||||
Accrued taxes, interest and expenses | 1,683 | 1,471 | 2,045 | 14% | (18%) | ||||||||||||
Other liabilities | 6,197 | 7,263 | 4,304 | (15%) | 44% | ||||||||||||
Long-term debt | 10,990 | 10,815 | 12,364 | 2% | (11%) | ||||||||||||
Total Liabilities | 187,812 | 191,282 | 182,464 | (2%) | 3% | ||||||||||||
Equity | |||||||||||||||||
Common stock(c) | 2,051 | 2,051 | 2,051 | — | — | ||||||||||||
Preferred stock | 2,116 | 2,116 | 2,116 | — | — | ||||||||||||
Capital surplus | 3,636 | 3,615 | 3,602 | 1% | 1% | ||||||||||||
Retained earnings | 20,818 | 20,501 | 19,343 | 2% | 8% | ||||||||||||
Accumulated other comprehensive (loss) income | (2,644) | (1,096) | 1,974 | 141% | NM | ||||||||||||
Treasury stock | (7,007) | (7,010) | (6,160) | — | 14% | ||||||||||||
Total Equity | 18,970 | 20,177 | 22,926 | (6%) | (17%) | ||||||||||||
Total Liabilities and Equity | $206,782 | $211,459 | $205,390 | (2%) | 1% | ||||||||||||
(a) Amortized cost | $56,140 | $50,171 | $36,081 | 12% | 56% | ||||||||||||
(b) Market values | 5 | 6 | 10 | (17%) | (50%) | ||||||||||||
(c) Common shares, stated value $2.22 per share (in thousands): | |||||||||||||||||
Authorized | 2,000,000 | 2,000,000 | 2,000,000 | — | — | ||||||||||||
Outstanding, excluding treasury | 686,152 | 685,905 | 703,740 | — | (2 | %) | |||||||||||
Treasury | 237,741 | 237,987 | 220,153 | — | 8 | % | |||||||||||
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||
$ in millions, except per share data | As of | ||||||||||||||||
(unaudited) | June | March | December | September | June | ||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | |||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $3,437 | $3,049 | $2,994 | $3,213 | $3,285 | ||||||||||||
Other short-term investments | 7,419 | 20,529 | 34,572 | 34,203 | 32,409 | ||||||||||||
Available-for-sale debt and other securities(a) | 52,837 | 48,832 | 38,110 | 37,870 | 38,012 | ||||||||||||
Held-to-maturity securities(b) | 5 | 6 | 8 | 8 | 10 | ||||||||||||
Trading debt securities | 293 | 324 | 512 | 685 | 711 | ||||||||||||
Equity securities | 326 | 358 | 376 | 329 | 341 | ||||||||||||
Loans and leases held for sale | 2,542 | 2,616 | 4,415 | 5,203 | 5,730 | ||||||||||||
Portfolio loans and leases: | |||||||||||||||||
Commercial and industrial loans | 56,095 | 53,909 | 51,659 | 47,834 | 47,564 | ||||||||||||
Commercial mortgage loans | 10,748 | 10,694 | 10,316 | 10,300 | 10,347 | ||||||||||||
Commercial construction loans | 5,357 | 5,420 | 5,241 | 5,456 | 5,871 | ||||||||||||
Commercial leases | 2,850 | 2,915 | 3,052 | 3,130 | 3,238 | ||||||||||||
Total commercial loans and leases | 75,050 | 72,938 | 70,268 | 66,720 | 67,020 | ||||||||||||
Residential mortgage loans | 17,566 | 17,144 | 16,397 | 16,158 | 16,131 | ||||||||||||
Home equity | 3,906 | 3,916 | 4,084 | 4,276 | 4,545 | ||||||||||||
Indirect secured consumer loans | 17,017 | 17,424 | 16,783 | 16,004 | 15,192 | ||||||||||||
Credit card | 1,763 | 1,690 | 1,766 | 1,744 | 1,793 | ||||||||||||
Other consumer loans | 3,521 | 2,753 | 2,752 | 3,009 | 3,052 | ||||||||||||
Total consumer loans | 43,773 | 42,927 | 41,782 | 41,191 | 40,713 | ||||||||||||
Portfolio loans and leases | 118,823 | 115,865 | 112,050 | 107,911 | 107,733 | ||||||||||||
Allowance for loan and lease losses | (2,014) | (1,908) | (1,892) | (1,954) | (2,033) | ||||||||||||
Portfolio loans and leases, net | 116,809 | 113,957 | 110,158 | 105,957 | 105,700 | ||||||||||||
Bank premises and equipment | 2,118 | 2,102 | 2,120 | 2,101 | 2,073 | ||||||||||||
Operating lease equipment | 600 | 622 | 616 | 647 | 715 | ||||||||||||
Goodwill | 4,926 | 4,514 | 4,514 | 4,514 | 4,259 | ||||||||||||
Intangible assets | 194 | 145 | 156 | 169 | 117 | ||||||||||||
Servicing rights | 1,582 | 1,444 | 1,121 | 943 | 818 | ||||||||||||
Other assets | 13,694 | 12,961 | 11,444 | 11,889 | 11,210 | ||||||||||||
Total Assets | $206,782 | $211,459 | $211,116 | $207,731 | $205,390 | ||||||||||||
Liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Demand | $60,859 | $65,590 | $65,088 | $63,879 | $62,760 | ||||||||||||
Interest checking | 43,338 | 48,836 | 48,870 | 45,964 | 44,872 | ||||||||||||
Savings | 23,748 | 23,622 | 22,227 | 21,423 | 20,667 | ||||||||||||
Money market | 28,792 | 29,947 | 30,263 | 30,652 | 30,564 | ||||||||||||
Foreign office | 177 | 115 | 121 | 202 | 152 | ||||||||||||
CDs $250,000 or less | 2,125 | 2,267 | 2,486 | 2,691 | 2,958 | ||||||||||||
CDs over $250,000 | 2,135 | 234 | 269 | 297 | 310 | ||||||||||||
Total deposits | 161,174 | 170,611 | 169,324 | 165,108 | 162,283 | ||||||||||||
Federal funds purchased | 711 | 250 | 281 | 309 | 338 | ||||||||||||
Other short-term borrowings | 7,057 | 872 | 980 | 949 | 1,130 | ||||||||||||
Accrued taxes, interest and expenses | 1,683 | 1,471 | 2,233 | 2,083 | 2,045 | ||||||||||||
Other liabilities | 6,197 | 7,263 | 4,267 | 5,339 | 4,304 | ||||||||||||
Long-term debt | 10,990 | 10,815 | 11,821 | 11,419 | 12,364 | ||||||||||||
Total Liabilities | 187,812 | 191,282 | 188,906 | 185,207 | 182,464 | ||||||||||||
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 | 3,636 | 3,615 | 3,624 | 3,611 | 3,602 | ||||||||||||
Retained earnings | 20,818 | 20,501 | 20,236 | 19,817 | 19,343 | ||||||||||||
Accumulated other comprehensive (loss) income | (2,644) | (1,096) | 1,207 | 1,637 | 1,974 | ||||||||||||
Treasury stock | (7,007) | (7,010) | (7,024) | (6,708) | (6,160) | ||||||||||||
Total Equity | 18,970 | 20,177 | 22,210 | 22,524 | 22,926 | ||||||||||||
Total Liabilities and Equity | $206,782 | $211,459 | $211,116 | $207,731 | $205,390 | ||||||||||||
(a) Amortized cost | $56,140 | $50,171 | $36,941 | $36,308 | $36,081 | ||||||||||||
(b) Market values | 5 | 6 | 8 | 8 | 10 | ||||||||||||
(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 | 686,152 | 685,905 | 682,778 | 689,790 | 703,740 | ||||||||||||
Treasury | 237,741 | 237,987 | 241,115 | 234,102 | 220,153 |
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||
Consolidated Statements of Changes in Equity | ||||||||||||||||||||
$ in millions | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
For the Three Months Ended | Year to Date | |||||||||||||||||||
June | June | June | June | |||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||
Total Equity, Beginning | $20,177 | $22,595 | $22,210 | $23,111 | ||||||||||||||||
Net income | 562 | 709 | 1,056 | 1,403 | ||||||||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||
Change in unrealized (losses) gains: | ||||||||||||||||||||
Available-for-sale debt securities | (1,506) | 230 | (3,437) | (459) | ||||||||||||||||
Qualifying cash flow hedges | (43) | (49) | (416) | (170) | ||||||||||||||||
Change in accumulated other comprehensive income related to employee benefit plans | 1 | 1 | 2 | 2 | ||||||||||||||||
Comprehensive income | (986) | 891 | (2,795) | 776 | ||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||
Common stock | (209) | (192) | (418) | (387) | ||||||||||||||||
Preferred stock | (36) | (35) | (56) | (55) | ||||||||||||||||
Impact of stock transactions under stock compensation plans, net | 24 | 15 | 29 | 9 | ||||||||||||||||
Shares acquired for treasury | — | (347) | — | (527) | ||||||||||||||||
Other | — | (1) | — | (1) | ||||||||||||||||
Total Equity, Ending | $18,970 | $22,926 | $18,970 | $22,926 | ||||||||||||||||
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||||||||
Average Balance Sheet and Yield/Rate Analysis | For the Three Months Ended | |||||||||||||||||||||||||
$ in millions | June | March | June | |||||||||||||||||||||||
(unaudited) | 2022 | 2022 | 2021 | |||||||||||||||||||||||
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) | $55,466 | 3.59 | % | $52,562 | 3.29 | % | $48,817 | 3.62 | % | |||||||||||||||||
Commercial mortgage loans(a) | 10,710 | 3.34 | % | 10,529 | 3.00 | % | 10,467 | 3.11 | % | |||||||||||||||||
Commercial construction loans(a) | 5,356 | 3.69 | % | 5,371 | 3.29 | % | 6,043 | 3.09 | % | |||||||||||||||||
Commercial leases(a) | 2,840 | 2.93 | % | 2,943 | 2.85 | % | 3,174 | 2.94 | % | |||||||||||||||||
Total commercial loans and leases | 74,372 | 3.54 | % | 71,405 | 3.23 | % | 68,501 | 3.47 | % | |||||||||||||||||
Residential mortgage loans | 19,899 | 3.12 | % | 20,179 | 3.17 | % | 21,740 | 3.29 | % | |||||||||||||||||
Home equity | 3,895 | 3.81 | % | 4,010 | 3.52 | % | 4,674 | 3.60 | % | |||||||||||||||||
Indirect secured consumer loans | 17,241 | 3.17 | % | 17,136 | 3.08 | % | 14,702 | 3.41 | % | |||||||||||||||||
Credit card | 1,704 | 12.29 | % | 1,691 | 12.31 | % | 1,770 | 12.13 | % | |||||||||||||||||
Other consumer loans | 3,125 | 5.99 | % | 2,741 | 6.08 | % | 3,056 | 5.96 | % | |||||||||||||||||
Total consumer loans | 45,864 | 3.73 | % | 45,757 | 3.68 | % | 45,942 | 3.88 | % | |||||||||||||||||
Total loans and leases | 120,236 | 3.61 | % | 117,162 | 3.41 | % | 114,443 | 3.63 | % | |||||||||||||||||
Securities: | ||||||||||||||||||||||||||
Taxable securities | 53,475 | 2.73 | % | 41,412 | 2.84 | % | 36,097 | 3.06 | % | |||||||||||||||||
Tax exempt securities(a) | 1,063 | 2.47 | % | 1,010 | 2.40 | % | 820 | 2.47 | % | |||||||||||||||||
Other short-term investments | 9,632 | 0.60 | % | 28,310 | 0.18 | % | 33,558 | 0.11 | % | |||||||||||||||||
Total interest-earning assets | 184,406 | 3.19 | % | 187,894 | 2.79 | % | 184,918 | 2.88 | % | |||||||||||||||||
Cash and due from banks | 3,118 | 2,962 | 3,033 | |||||||||||||||||||||||
Other assets | 20,282 | 20,186 | 20,608 | |||||||||||||||||||||||
Allowance for loan and lease losses | (1,909) | (1,892) | (2,206) | |||||||||||||||||||||||
Total Assets | $205,897 | $209,150 | $206,353 | |||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||
Interest checking deposits | $44,349 | 0.15 | % | $48,659 | 0.05 | % | $45,307 | 0.06 | % | |||||||||||||||||
Savings deposits | 23,708 | 0.03 | % | 22,772 | 0.02 | % | 20,494 | 0.02 | % | |||||||||||||||||
Money market deposits | 29,284 | 0.06 | % | 30,263 | 0.03 | % | 30,844 | 0.05 | % | |||||||||||||||||
Foreign office deposits | 139 | 0.13 | % | 126 | 0.04 | % | 140 | 0.03 | % | |||||||||||||||||
CDs $250,000 or less | 2,193 | 0.09 | % | 2,376 | 0.12 | % | 3,514 | 0.30 | % | |||||||||||||||||
Total interest-bearing core deposits | 99,673 | 0.09 | % | 104,196 | 0.04 | % | 100,299 | 0.06 | % | |||||||||||||||||
CDs over $250,000 | 662 | 1.08 | % | 254 | 0.85 | % | 326 | 1.84 | % | |||||||||||||||||
Federal funds purchased | 392 | 0.82 | % | 259 | 0.15 | % | 346 | 0.10 | % | |||||||||||||||||
Securities sold under repurchase agreements | 488 | 0.08 | % | 491 | 0.01 | % | 566 | 0.03 | % | |||||||||||||||||
FHLB advances | 2,743 | 1.41 | % | — | 0.15 | % | — | — | ||||||||||||||||||
Derivative collateral and other secured borrowings | 340 | 3.12 | % | 399 | 0.31 | % | 531 | 0.22 | % | |||||||||||||||||
Long-term debt | 11,164 | 3.09 | % | 11,165 | 3.02 | % | 13,883 | 2.85 | % | |||||||||||||||||
Total interest-bearing liabilities | 115,462 | 0.43 | % | 116,764 | 0.33 | % | 115,951 | 0.40 | % | |||||||||||||||||
Demand deposits | 62,555 | 64,212 | 61,994 | |||||||||||||||||||||||
Other liabilities | 8,632 | 6,772 | 5,481 | |||||||||||||||||||||||
Total Liabilities | 186,649 | 187,748 | 183,426 | |||||||||||||||||||||||
Total Equity | 19,248 | 21,402 | 22,927 | |||||||||||||||||||||||
Total Liabilities and Equity | $205,897 | $209,150 | $206,353 | |||||||||||||||||||||||
Ratios: | ||||||||||||||||||||||||||
Net interest margin (FTE)(b) | 2.92 | % | 2.59 | % | 2.63 | % | ||||||||||||||||||||
Net interest rate spread (FTE)(b) | 2.76 | % | 2.46 | % | 2.48 | % | ||||||||||||||||||||
Interest-bearing liabilities to interest-earning assets | 62.61 | % | 62.14 | % | 62.70 | % | ||||||||||||||||||||
(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 | June | June | |||||||||||||||
(unaudited) | 2022 | 2021 | |||||||||||||||
Average | Average | Average | Average | ||||||||||||||
Balance | Yield/Rate | Balance | Yield/Rate | ||||||||||||||
Assets | |||||||||||||||||
Interest-earning assets: | |||||||||||||||||
Loans and leases: | |||||||||||||||||
Commercial and industrial loans(a) | $54,022 | 3.45 | % | $49,263 | 3.61 | % | |||||||||||
Commercial mortgage loans(a) | 10,620 | 3.17 | % | 10,500 | 3.09 | % | |||||||||||
Commercial construction loans(a) | 5,364 | 3.49 | % | 6,041 | 3.15 | % | |||||||||||
Commercial leases(a) | 2,891 | 2.89 | % | 3,152 | 3.05 | % | |||||||||||
Total commercial loans and leases | 72,897 | 3.39 | % | 68,956 | 3.46 | % | |||||||||||
Residential mortgage loans | 20,037 | 3.15 | % | 21,095 | 3.32 | % | |||||||||||
Home equity | 3,952 | 3.66 | % | 4,841 | 3.59 | % | |||||||||||
Indirect secured consumer loans | 17,189 | 3.13 | % | 14,331 | 3.49 | % | |||||||||||
Credit card | 1,698 | 12.30 | % | 1,824 | 12.25 | % | |||||||||||
Other consumer loans | 2,935 | 6.03 | % | 3,027 | 6.04 | % | |||||||||||
Total consumer loans | 45,811 | 3.71 | % | 45,118 | 3.95 | % | |||||||||||
Total loans and leases | 118,708 | 3.51 | % | 114,074 | 3.66 | % | |||||||||||
Securities: | |||||||||||||||||
Taxable securities | 47,476 | 2.77 | % | 35,932 | 3.01 | % | |||||||||||
Tax exempt securities(a) | 1,036 | 2.43 | % | 677 | 2.39 | % | |||||||||||
Other short-term investments | 18,919 | 0.28 | % | 33,140 | 0.10 | % | |||||||||||
Total interest-earning assets | 186,139 | 2.99 | % | 183,823 | 2.89 | % | |||||||||||
Cash and due from banks | 3,040 | 3,012 | |||||||||||||||
Other assets | 20,237 | 20,595 | |||||||||||||||
Allowance for loan and lease losses | (1,901) | (2,328) | |||||||||||||||
Total Assets | $207,515 | $205,102 | |||||||||||||||
Liabilities | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Interest checking deposits | $46,492 | 0.10 | % | $45,437 | 0.06 | % | |||||||||||
Savings deposits | 23,242 | 0.02 | % | 19,727 | 0.02 | % | |||||||||||
Money market deposits | 29,771 | 0.05 | % | 30,723 | 0.05 | % | |||||||||||
Foreign office deposits | 132 | 0.09 | % | 134 | 0.04 | % | |||||||||||
CDs $250,000 or less | 2,284 | 0.10 | % | 3,668 | 0.40 | % | |||||||||||
Total interest-bearing core deposits | 101,921 | 0.07 | % | 99,689 | 0.06 | % | |||||||||||
CDs over $250,000 | 459 | 1.02 | % | 776 | 1.41 | % | |||||||||||
Federal funds purchased | 326 | 0.56 | % | 335 | 0.11 | % | |||||||||||
Securities sold under repurchase agreements | 489 | 0.05 | % | 615 | 0.03 | % | |||||||||||
FHLB advances | 1,379 | 1.41 | % | — | — | ||||||||||||
Derivative collateral and other secured borrowings | 370 | 1.61 | % | 538 | 0.35 | % | |||||||||||
Long-term debt | 11,165 | 3.05 | % | 14,362 | 2.84 | % | |||||||||||
Total interest-bearing liabilities | 116,109 | 0.38 | % | 116,315 | 0.42 | % | |||||||||||
Demand deposits | 63,379 | 60,300 | |||||||||||||||
Other liabilities | 7,708 | 5,548 | |||||||||||||||
Total Liabilities | 187,196 | 182,163 | |||||||||||||||
Total Equity | 20,319 | 22,939 | |||||||||||||||
Total Liabilities and Equity | $207,515 | $205,102 | |||||||||||||||
Ratios: | |||||||||||||||||
Net interest margin (FTE)(b) | 2.75 | % | 2.62 | % | |||||||||||||
Net interest rate spread (FTE)(b) | 2.61 | % | 2.47 | % | |||||||||||||
Interest-bearing liabilities to interest-earning assets | 62.38 | % | 63.28 | % | |||||||||||||
(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) | June | March | December | September | June | ||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | |||||||||||||
Average Portfolio Loans and Leases | |||||||||||||||||
Commercial loans and leases: | |||||||||||||||||
Commercial and industrial loans | $55,460 | $52,554 | $49,566 | $47,766 | $48,773 | ||||||||||||
Commercial mortgage loans | 10,710 | 10,521 | 10,247 | 10,317 | 10,459 | ||||||||||||
Commercial construction loans | 5,356 | 5,371 | 5,329 | 5,728 | 6,043 | ||||||||||||
Commercial leases | 2,839 | 2,942 | 3,057 | 3,158 | 3,174 | ||||||||||||
Total commercial loans and leases | 74,365 | 71,388 | 68,199 | 66,969 | 68,449 | ||||||||||||
Consumer loans: | |||||||||||||||||
Residential mortgage loans | 17,363 | 16,501 | 16,188 | 16,223 | 15,883 | ||||||||||||
Home equity | 3,895 | 4,009 | 4,179 | 4,409 | 4,674 | ||||||||||||
Indirect secured consumer loans | 17,241 | 17,136 | 16,345 | 15,590 | 14,702 | ||||||||||||
Credit card | 1,704 | 1,691 | 1,739 | 1,748 | 1,770 | ||||||||||||
Other consumer loans | 3,125 | 2,742 | 2,837 | 3,031 | 3,056 | ||||||||||||
Total consumer loans | 43,328 | 42,079 | 41,288 | 41,001 | 40,085 | ||||||||||||
Total average portfolio loans and leases | $117,693 | $113,467 | $109,487 | $107,970 | $108,534 | ||||||||||||
Average Loans and Leases Held for Sale | |||||||||||||||||
Commercial loans and leases held for sale | $7 | $18 | $5 | $31 | $52 | ||||||||||||
Consumer loans held for sale | 2,536 | 3,677 | 5,298 | 5,527 | 5,857 | ||||||||||||
Average loans and leases held for sale | $2,543 | $3,695 | $5,303 | $5,558 | $5,909 | ||||||||||||
Average PPP loans(a) | $549 | $1,012 | $1,756 | $3,071 | $4,810 | ||||||||||||
Average portfolio commercial and industrial loans - excluding PPP loans | 54,911 | 51,542 | 47,810 | 44,695 | 43,963 | ||||||||||||
Total average portfolio commercial and industrial loans | $55,460 | $52,554 | $49,566 | $47,766 | $48,773 | ||||||||||||
End of Period Portfolio Loans and Leases | |||||||||||||||||
Commercial loans and leases: | |||||||||||||||||
Commercial and industrial loans | $56,095 | $53,909 | $51,659 | $47,834 | $47,564 | ||||||||||||
Commercial mortgage loans | 10,748 | 10,694 | 10,316 | 10,300 | 10,347 | ||||||||||||
Commercial construction loans | 5,357 | 5,420 | 5,241 | 5,456 | 5,871 | ||||||||||||
Commercial leases | 2,850 | 2,915 | 3,052 | 3,130 | 3,238 | ||||||||||||
Total commercial loans and leases | 75,050 | 72,938 | 70,268 | 66,720 | 67,020 | ||||||||||||
Consumer loans: | |||||||||||||||||
Residential mortgage loans | 17,566 | 17,144 | 16,397 | 16,158 | 16,131 | ||||||||||||
Home equity | 3,906 | 3,916 | 4,084 | 4,276 | 4,545 | ||||||||||||
Indirect secured consumer loans | 17,017 | 17,424 | 16,783 | 16,004 | 15,192 | ||||||||||||
Credit card | 1,763 | 1,690 | 1,766 | 1,744 | 1,793 | ||||||||||||
Other consumer loans | 3,521 | 2,753 | 2,752 | 3,009 | 3,052 | ||||||||||||
Total consumer loans | 43,773 | 42,927 | 41,782 | 41,191 | 40,713 | ||||||||||||
Total portfolio loans and leases | $118,823 | $115,865 | $112,050 | $107,911 | $107,733 | ||||||||||||
End of Period Loans and Leases Held for Sale | |||||||||||||||||
Commercial loans and leases held for sale | $4 | $23 | $21 | $2 | $46 | ||||||||||||
Consumer loans held for sale | 2,538 | 2,593 | 4,394 | 5,201 | 5,684 | ||||||||||||
Loans and leases held for sale | $2,542 | $2,616 | $4,415 | $5,203 | $5,730 | ||||||||||||
Operating lease equipment | $600 | $622 | $616 | $647 | $715 | ||||||||||||
Loans and Leases Serviced for Others(b) | |||||||||||||||||
Commercial and industrial loans | $994 | $993 | $923 | $879 | $919 | ||||||||||||
Commercial mortgage loans | 601 | 592 | 610 | 620 | 623 | ||||||||||||
Commercial construction loans | 418 | 502 | 474 | 487 | 528 | ||||||||||||
Commercial leases | 566 | 571 | 589 | 555 | 536 | ||||||||||||
Residential mortgage loans | 100,519 | 97,736 | 89,234 | 77,929 | 71,496 | ||||||||||||
Other consumer loans | — | — | — | 50 | 50 | ||||||||||||
Total loans and leases serviced for others | 103,098 | 100,394 | 91,830 | 80,520 | 74,152 | ||||||||||||
Total loans and leases owned or serviced | $225,063 | $219,497 | $208,911 | $194,281 | $188,330 | ||||||||||||
End of period PPP loans(a) | $371 | $737 | $1,305 | $2,344 | $3,685 | ||||||||||||
End of period portfolio commercial and industrial loans - excluding PPP loans | 55,724 | 53,172 | 50,354 | 45,490 | 43,879 | ||||||||||||
Total end of period portfolio commercial and industrial loans | $56,095 | $53,909 | $51,659 | $47,834 | $47,564 |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||||||||
Regulatory Capital | |||||||||||||||||||||||
$ in millions | As of | ||||||||||||||||||||||
(unaudited) | June | March | December | September | June | ||||||||||||||||||
2022(a) | 2022 | 2021 | 2021 | 2021 | |||||||||||||||||||
Regulatory Capital(b) | |||||||||||||||||||||||
CET1 capital | $14,830 | $14,937 | $14,781 | $14,673 | $15,050 | ||||||||||||||||||
Additional tier 1 capital | 2,116 | 2,116 | 2,116 | 2,116 | 2,116 | ||||||||||||||||||
Tier 1 capital | 16,946 | 17,053 | 16,897 | 16,789 | 17,166 | ||||||||||||||||||
Tier 2 capital | 3,713 | 3,676 | 3,892 | 3,953 | 4,018 | ||||||||||||||||||
Total regulatory capital | $20,659 | $20,729 | $20,789 | $20,742 | $21,184 | ||||||||||||||||||
Risk-weighted assets | $165,502 | $160,352 | $154,860 | $148,827 | $145,084 | ||||||||||||||||||
Ratios | |||||||||||||||||||||||
Average total Bancorp shareholders’ equity as a percent of average assets | 9.35 | % | 10.23 | % | 10.71 | % | 11.16 | % | 11.11 | % | |||||||||||||
Regulatory Capital Ratios(b) | |||||||||||||||||||||||
Fifth Third Bancorp | |||||||||||||||||||||||
CET1 capital | 8.96 | % | 9.31 | % | 9.54 | % | 9.86 | % | 10.37 | % | |||||||||||||
Tier 1 risk-based capital | 10.24 | % | 10.63 | % | 10.91 | % | 11.28 | % | 11.83 | % | |||||||||||||
Total risk-based capital | 12.48 | % | 12.93 | % | 13.42 | % | 13.94 | % | 14.60 | % | |||||||||||||
Leverage | 8.30 | % | 8.32 | % | 8.27 | % | 8.41 | % | 8.55 | % | |||||||||||||
Fifth Third Bank, National Association | |||||||||||||||||||||||
Tier 1 risk-based capital | 10.60 | % | 10.85 | % | 10.90 | % | 11.25 | % | 11.67 | % | |||||||||||||
Total risk-based capital | 12.03 | % | 12.24 | % | 12.33 | % | 12.79 | % | 13.27 | % | |||||||||||||
Leverage | 8.62 | % | 8.51 | % | 8.29 | % | 8.43 | % | 8.46 | % |
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||
Summary of Credit Loss Experience | |||||||||||||||||
$ in millions | For the Three Months Ended | ||||||||||||||||
(unaudited) | June | March | December | September | June | ||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | |||||||||||||
Average portfolio loans and leases: | |||||||||||||||||
Commercial and industrial loans | $55,460 | $52,554 | $49,566 | $47,766 | $48,773 | ||||||||||||
Commercial mortgage loans | 10,710 | 10,521 | 10,247 | 10,317 | 10,459 | ||||||||||||
Commercial construction loans | 5,356 | 5,371 | 5,329 | 5,728 | 6,043 | ||||||||||||
Commercial leases | 2,839 | 2,942 | 3,057 | 3,158 | 3,174 | ||||||||||||
Total commercial loans and leases | 74,365 | 71,388 | 68,199 | 66,969 | 68,449 | ||||||||||||
Residential mortgage loans | 17,363 | 16,501 | 16,188 | 16,223 | 15,883 | ||||||||||||
Home equity | 3,895 | 4,009 | 4,179 | 4,409 | 4,674 | ||||||||||||
Indirect secured consumer loans | 17,241 | 17,136 | 16,345 | 15,590 | 14,702 | ||||||||||||
Credit card | 1,704 | 1,691 | 1,739 | 1,748 | 1,770 | ||||||||||||
Other consumer loans | 3,125 | 2,742 | 2,837 | 3,031 | 3,056 | ||||||||||||
Total consumer loans | 43,328 | 42,079 | 41,288 | 41,001 | 40,085 | ||||||||||||
Total average portfolio loans and leases | $117,693 | $113,467 | $109,487 | $107,970 | $108,534 | ||||||||||||
Losses charged-off: | |||||||||||||||||
Commercial and industrial loans | ($34) | ($11) | ($25) | ($10) | ($36) | ||||||||||||
Commercial mortgage loans | — | — | (1) | — | (8) | ||||||||||||
Commercial construction loans | (3) | — | — | — | — | ||||||||||||
Commercial leases | — | — | (2) | — | (1) | ||||||||||||
Total commercial loans and leases | (37) | (11) | (28) | (10) | (45) | ||||||||||||
Residential mortgage loans | — | (1) | — | (1) | (1) | ||||||||||||
Home equity | (3) | (2) | (2) | (2) | (2) | ||||||||||||
Indirect secured consumer loans | (14) | (16) | (13) | (9) | (11) | ||||||||||||
Credit card | (18) | (17) | (17) | (17) | (26) | ||||||||||||
Other consumer loans | (18) | (17) | (17) | (17) | (18) | ||||||||||||
Total consumer loans | (53) | (53) | (49) | (46) | (58) | ||||||||||||
Total losses charged-off | ($90) | ($64) | ($77) | ($56) | ($103) | ||||||||||||
Recoveries of losses previously charged-off: | |||||||||||||||||
Commercial and industrial loans | $1 | $2 | $11 | $5 | $23 | ||||||||||||
Commercial mortgage loans | — | 1 | — | 1 | 2 | ||||||||||||
Commercial construction loans | — | — | — | — | — | ||||||||||||
Commercial leases | — | — | — | — | 3 | ||||||||||||
Total commercial loans and leases | 1 | 3 | 11 | 6 | 28 | ||||||||||||
Residential mortgage loans | 1 | 2 | 3 | 2 | 1 | ||||||||||||
Home equity | 3 | 3 | 4 | 3 | 3 | ||||||||||||
Indirect secured consumer loans | 9 | 9 | 7 | 10 | 11 | ||||||||||||
Credit card | 4 | 4 | 4 | 5 | 6 | ||||||||||||
Other consumer loans | 10 | 9 | 10 | 9 | 10 | ||||||||||||
Total consumer loans | 27 | 27 | 28 | 29 | 31 | ||||||||||||
Total recoveries of losses previously charged-off | $28 | $30 | $39 | $35 | $59 | ||||||||||||
Net losses charged-off: | |||||||||||||||||
Commercial and industrial loans | ($33) | ($9) | ($14) | ($5) | ($13) | ||||||||||||
Commercial mortgage loans | — | 1 | (1) | 1 | (6) | ||||||||||||
Commercial construction loans | (3) | — | — | — | — | ||||||||||||
Commercial leases | — | — | (2) | — | 2 | ||||||||||||
Total commercial loans and leases | (36) | (8) | (17) | (4) | (17) | ||||||||||||
Residential mortgage loans | 1 | 1 | 3 | 1 | — | ||||||||||||
Home equity | — | 1 | 2 | 1 | 1 | ||||||||||||
Indirect secured consumer loans | (5) | (7) | (6) | 1 | — | ||||||||||||
Credit card | (14) | (13) | (13) | (12) | (20) | ||||||||||||
Other consumer loans | (8) | (8) | (7) | (8) | (8) | ||||||||||||
Total consumer loans | (26) | (26) | (21) | (17) | (27) | ||||||||||||
Total net losses charged-off | ($62) | ($34) | ($38) | ($21) | ($44) | ||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized): | |||||||||||||||||
Commercial and industrial loans | 0.24 | % | 0.07 | % | 0.11 | % | 0.04 | % | 0.11 | % | |||||||
Commercial mortgage loans | — | (0.03 | %) | 0.03 | % | (0.03 | %) | 0.22 | % | ||||||||
Commercial construction loans | 0.23 | % | — | (0.01 | %) | — | 0.02 | % | |||||||||
Commercial leases | (0.03 | %) | (0.02 | %) | 0.24 | % | 0.00 | % | (0.21 | %) | |||||||
Total commercial loans and leases | 0.19 | % | 0.05 | % | 0.10 | % | 0.03 | % | 0.10 | % | |||||||
Residential mortgage loans | (0.02 | %) | (0.02 | %) | (0.06 | %) | (0.02 | %) | (0.01 | %) | |||||||
Home equity | (0.06 | %) | (0.07 | %) | (0.18 | %) | (0.13 | %) | (0.09 | %) | |||||||
Indirect secured consumer loans | 0.13 | % | 0.17 | % | 0.14 | % | (0.02 | %) | 0.01 | % | |||||||
Credit card | 3.26 | % | 3.13 | % | 2.90 | % | 2.70 | % | 4.52 | % | |||||||
Other consumer loans | 1.04 | % | 1.07 | % | 1.12 | % | 1.05 | % | 0.91 | % | |||||||
Total consumer loans | 0.24 | % | 0.25 | % | 0.21 | % | 0.16 | % | 0.26 | % | |||||||
Total net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.21 | % | 0.12 | % | 0.14 | % | 0.08 | % | 0.16 | % |
Fifth Third Bancorp and Subsidiaries | ||||||||||||||||||||
Asset Quality | ||||||||||||||||||||
$ in millions | For the Three Months Ended | |||||||||||||||||||
(unaudited) | June | March | December | September | June | |||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||
Allowance for Credit Losses | ||||||||||||||||||||
Allowance for loan and lease losses, beginning | $1,908 | $1,892 | $1,954 | $2,033 | $2,208 | |||||||||||||||
Total net losses charged-off | (62) | (34) | (38) | (21) | (44) | |||||||||||||||
Provision for (benefit from) loan and lease losses | 168 | 50 | (24) | (58) | (131) | |||||||||||||||
Allowance for loan and lease losses, ending | $2,014 | $1,908 | $1,892 | $1,954 | $2,033 | |||||||||||||||
Reserve for unfunded commitments, beginning | $177 | $182 | $205 | $189 | $173 | |||||||||||||||
Provision for (benefit from) the reserve for unfunded commitments | 11 | (5) | (23) | 16 | 16 | |||||||||||||||
Reserve for unfunded commitments, ending | $188 | $177 | $182 | $205 | $189 | |||||||||||||||
Components of allowance for credit losses: | ||||||||||||||||||||
Allowance for loan and lease losses | $2,014 | $1,908 | $1,892 | $1,954 | $2,033 | |||||||||||||||
Reserve for unfunded commitments | 188 | 177 | 182 | 205 | 189 | |||||||||||||||
Total allowance for credit losses | $2,202 | $2,085 | $2,074 | $2,159 | $2,222 | |||||||||||||||
As of | ||||||||||||||||||||
June | March | December | September | June | ||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||
Nonperforming Assets and Delinquent Loans | ||||||||||||||||||||
Nonaccrual portfolio loans and leases: | ||||||||||||||||||||
Commercial and industrial loans | $89 | $105 | $116 | $172 | $193 | |||||||||||||||
Commercial mortgage loans | 12 | 32 | 42 | 43 | 43 | |||||||||||||||
Commercial construction loans | — | 6 | 6 | — | — | |||||||||||||||
Commercial leases | 2 | 3 | 4 | 6 | 9 | |||||||||||||||
Residential mortgage loans | 49 | 42 | 10 | 13 | 17 | |||||||||||||||
Home equity | 45 | 49 | 47 | 48 | 53 | |||||||||||||||
Indirect secured consumer loans | 5 | 5 | 5 | 5 | 6 | |||||||||||||||
Other consumer loans | 2 | 1 | 1 | 1 | 1 | |||||||||||||||
Total nonaccrual portfolio loans and leases (excludes restructured loans) | 204 | 243 | 231 | 288 | 322 | |||||||||||||||
Nonaccrual restructured portfolio commercial loans | 216 | 177 | 169 | 128 | 164 | |||||||||||||||
Nonaccrual restructured portfolio consumer loans(c) | 119 | 114 | 98 | 112 | 135 | |||||||||||||||
Total nonaccrual portfolio loans and leases | 539 | 534 | 498 | 528 | 621 | |||||||||||||||
Repossessed property | 6 | 5 | 5 | 4 | 5 | |||||||||||||||
OREO | 14 | 27 | 24 | 27 | 31 | |||||||||||||||
Total nonperforming portfolio loans and leases and OREO | 559 | 566 | 527 | 559 | 657 | |||||||||||||||
Nonaccrual loans held for sale | — | — | 15 | — | 13 | |||||||||||||||
Nonaccrual restructured loans held for sale | — | 4 | — | 1 | 27 | |||||||||||||||
Total nonperforming assets | $559 | $570 | $542 | $560 | $697 | |||||||||||||||
Loans and leases 90 days past due (accrual): | ||||||||||||||||||||
Commercial and industrial loans | $6 | $9 | $17 | $4 | $2 | |||||||||||||||
Commercial mortgage loans | — | 2 | 1 | 2 | 4 | |||||||||||||||
Commercial construction loans | — | — | 1 | — | — | |||||||||||||||
Commercial leases | 1 | — | — | 1 | — | |||||||||||||||
Total commercial loans and leases | 7 | 11 | 19 | 7 | 6 | |||||||||||||||
Residential mortgage loans(c) | 8 | 14 | 72 | 61 | 57 | |||||||||||||||
Home equity | 2 | 1 | 1 | 1 | 1 | |||||||||||||||
Indirect secured consumer loans | 8 | 9 | 9 | 8 | 4 | |||||||||||||||
Credit card | 13 | 14 | 15 | 14 | 14 | |||||||||||||||
Other consumer loans | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
Total consumer loans | 32 | 39 | 98 | 85 | 77 | |||||||||||||||
Total loans and leases 90 days past due (accrual)(b) | $39 | $50 | $117 | $92 | $83 | |||||||||||||||
Ratios | ||||||||||||||||||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.21 | % | 0.12 | % | 0.14 | % | 0.08 | % | 0.16 | % | ||||||||||
Allowance for credit losses: | ||||||||||||||||||||
As a percent of portfolio loans and leases | 1.85 | % | 1.80 | % | 1.85 | % | 2.00 | % | 2.06 | % | ||||||||||
As a percent of nonperforming portfolio loans and leases(a) | 408 | % | 391 | % | 416 | % | 409 | % | 358 | % | ||||||||||
As a percent of nonperforming portfolio assets(a) | 394 | % | 369 | % | 394 | % | 386 | % | 338 | % | ||||||||||
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases(a) | 0.45 | % | 0.46 | % | 0.44 | % | 0.49 | % | 0.58 | % | ||||||||||
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a) | 0.47 | % | 0.49 | % | 0.47 | % | 0.52 | % | 0.61 | % | ||||||||||
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property | 0.46 | % | 0.48 | % | 0.47 | % | 0.49 | % | 0.61 | % | ||||||||||
(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) | June | March | December | September | June | |||||||||||||||||||||
2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||||||||
Net interest income | $1,339 | $1,195 | $1,197 | $1,189 | $1,208 | |||||||||||||||||||||
Add: Taxable equivalent adjustment | 3 | 3 | 3 | 3 | 3 | |||||||||||||||||||||
Net interest income (FTE) (a) | 1,342 | 1,198 | 1,200 | 1,192 | 1,211 | |||||||||||||||||||||
Net interest income (annualized) (b) | 5,371 | 4,846 | 4,749 | 4,717 | 4,845 | |||||||||||||||||||||
Net interest income (FTE) (annualized) (c) | 5,383 | 4,859 | 4,761 | 4,729 | 4,857 | |||||||||||||||||||||
Interest income | 1,464 | 1,289 | 1,294 | 1,292 | 1,323 | |||||||||||||||||||||
Add: Taxable equivalent adjustment | 3 | 3 | 3 | 3 | 3 | |||||||||||||||||||||
Interest income (FTE) | 1,467 | 1,292 | 1,297 | 1,295 | 1,326 | |||||||||||||||||||||
Interest income (FTE) (annualized) (d) | 5,884 | 5,240 | 5,146 | 5,138 | 5,319 | |||||||||||||||||||||
Interest expense (annualized) (e) | 501 | 381 | 385 | 409 | 461 | |||||||||||||||||||||
Average interest-earning assets (f) | 184,406 | 187,894 | 187,045 | 182,801 | 184,918 | |||||||||||||||||||||
Average interest-bearing liabilities (g) | 115,462 | 116,764 | 115,725 | 113,548 | 115,951 | |||||||||||||||||||||
Net interest margin (b) / (f) | 2.91 | % | 2.58 | % | 2.54 | % | 2.58 | % | 2.62 | % | ||||||||||||||||
Net interest margin (FTE) (c) / (f) | 2.92 | % | 2.59 | % | 2.55 | % | 2.59 | % | 2.63 | % | ||||||||||||||||
Net interest rate spread (FTE) (d) / (f) - (e) / (g) | 2.76 | % | 2.46 | % | 2.42 | % | 2.45 | % | 2.48 | % | ||||||||||||||||
Income before income taxes | $724 | $612 | $829 | $895 | $911 | |||||||||||||||||||||
Add: Taxable equivalent adjustment | 3 | 3 | 3 | 3 | 3 | |||||||||||||||||||||
Income before income taxes (FTE) | 727 | 615 | 832 | 898 | 914 | |||||||||||||||||||||
Net income available to common shareholders | 526 | 474 | 627 | 684 | 674 | |||||||||||||||||||||
Add: Intangible amortization, net of tax | 9 | 9 | 9 | 9 | 8 | |||||||||||||||||||||
Tangible net income available to common shareholders (h) | 535 | 483 | 636 | 693 | 682 | |||||||||||||||||||||
Tangible net income available to common shareholders (annualized) (i) | 2,146 | 1,959 | 2,523 | 2,749 | 2,735 | |||||||||||||||||||||
Average Bancorp shareholders’ equity | 19,248 | 21,402 | 22,449 | 22,927 | 22,927 | |||||||||||||||||||||
Less: | Average preferred stock | (2,116) | (2,116) | (2,116) | (2,116) | (2,116) | ||||||||||||||||||||
Average goodwill | (4,744) | (4,514) | (4,514) | (4,430) | (4,259) | |||||||||||||||||||||
Average intangible assets | (158) | (150) | (162) | (149) | (122) | |||||||||||||||||||||
Average tangible common equity, including AOCI (j) | 12,230 | 14,622 | 15,657 | 16,232 | 16,430 | |||||||||||||||||||||
Less: | Average AOCI | 2,397 | (129) | (1,382) | (1,980) | (1,968) | ||||||||||||||||||||
Average tangible common equity, excluding AOCI (k) | 14,627 | 14,493 | 14,275 | 14,252 | 14,462 | |||||||||||||||||||||
Total Bancorp shareholders’ equity | 18,970 | 20,177 | 22,210 | 22,524 | 22,926 | |||||||||||||||||||||
Less: | Preferred stock | (2,116) | (2,116) | (2,116) | (2,116) | (2,116) | ||||||||||||||||||||
Goodwill | (4,926) | (4,514) | (4,514) | (4,514) | (4,259) | |||||||||||||||||||||
Intangible assets | (194) | (145) | (156) | (169) | (117) | |||||||||||||||||||||
Tangible common equity, including AOCI (l) | 11,734 | 13,402 | 15,424 | 15,725 | 16,434 | |||||||||||||||||||||
Less: | AOCI | 2,644 | 1,096 | (1,207) | (1,637) | (1,974) | ||||||||||||||||||||
Tangible common equity, excluding AOCI (m) | 14,378 | 14,498 | 14,217 | 14,088 | 14,460 | |||||||||||||||||||||
Add: | Preferred stock | 2,116 | 2,116 | 2,116 | 2,116 | 2,116 | ||||||||||||||||||||
Tangible equity (n) | 16,494 | 16,614 | 16,333 | 16,204 | 16,576 | |||||||||||||||||||||
Total assets | 206,782 | 211,459 | 211,116 | 207,731 | 205,390 | |||||||||||||||||||||
Less: | Goodwill | (4,926) | (4,514) | (4,514) | (4,514) | (4,259) | ||||||||||||||||||||
Intangible assets | (194) | (145) | (156) | (169) | (117) | |||||||||||||||||||||
Tangible assets, including AOCI (o) | 201,662 | 206,800 | 206,446 | 203,048 | 201,014 | |||||||||||||||||||||
Less: | AOCI, before tax | 3,347 | 1,387 | (1,528) | (2,072) | (2,499) | ||||||||||||||||||||
Tangible assets, excluding AOCI (p) | $205,009 | $208,187 | $204,918 | $200,976 | $198,515 | |||||||||||||||||||||
Common shares outstanding (q) | 686 | 686 | 683 | 690 | 704 | |||||||||||||||||||||
Tangible equity (n) / (p) | 8.05 | % | 7.98 | % | 7.97 | % | 8.06 | % | 8.35 | % | ||||||||||||||||
Tangible common equity (excluding AOCI) (m) / (p) | 7.01 | % | 6.96 | % | 6.94 | % | 7.01 | % | 7.28 | % | ||||||||||||||||
Tangible common equity (including AOCI) (l) / (o) | 5.82 | % | 6.48 | % | 7.47 | % | 7.74 | % | 8.18 | % | ||||||||||||||||
Tangible book value per share (including AOCI) (l) / (q) | $17.10 | $19.54 | $22.58 | $22.79 | $23.34 | |||||||||||||||||||||
Tangible book value per share (excluding AOCI) (m) / (q) | $20.96 | $21.13 | $20.82 | $20.42 | $20.54 | |||||||||||||||||||||
Fifth Third Bancorp and Subsidiaries | |||||||||||||||||||||||
Non-GAAP Reconciliation | |||||||||||||||||||||||
$ in millions | For the Three Months Ended | ||||||||||||||||||||||
(unaudited) | June | March | June | ||||||||||||||||||||
2022 | 2022 | 2021 | |||||||||||||||||||||
Net income (r) | $562 | $494 | $709 | ||||||||||||||||||||
Net income (annualized) (s) | 2,254 | 2,003 | 2,844 | ||||||||||||||||||||
Adjustments (pre-tax items) | |||||||||||||||||||||||
Valuation of Visa total return swap | 18 | 11 | 37 | ||||||||||||||||||||
Business disposition charges | 6 | — | — | ||||||||||||||||||||
Adjustments, after-tax (t)(a) | 19 | 8 | 28 | ||||||||||||||||||||
Noninterest income (u) | 676 | 684 | 741 | ||||||||||||||||||||
Valuation of Visa total return swap | 18 | 11 | 37 | ||||||||||||||||||||
Business disposition charges | 6 | — | — | ||||||||||||||||||||
Adjusted noninterest income (v) | 700 | 695 | 778 | ||||||||||||||||||||
Noninterest expense (w) | 1,112 | 1,222 | 1,153 | ||||||||||||||||||||
Adjusted net income (r) + (t) | 581 | 502 | 737 | ||||||||||||||||||||
Adjusted net income (annualized) (x) | 2,330 | 2,036 | 2,956 | ||||||||||||||||||||
Adjusted tangible net income available to common shareholders (h) + (t) | 554 | 491 | 710 | ||||||||||||||||||||
Adjusted tangible net income available to common shareholders (annualized) (y) | 2,222 | 1,991 | 2,848 | ||||||||||||||||||||
Average assets (z) | $205,897 | $209,150 | $206,353 | ||||||||||||||||||||
Return on average tangible common equity (i) / (j) | 17.5 | % | 13.4 | % | 16.6 | % | |||||||||||||||||
Return on average tangible common equity excluding AOCI (i) / (k) | 14.7 | % | 13.5 | % | 18.9 | % | |||||||||||||||||
Adjusted return on average tangible common equity, including AOCI (y) / (j) | 18.2 | % | 13.6 | % | 17.3 | % | |||||||||||||||||
Adjusted return on average tangible common equity, excluding AOCI (y) / (k) | 15.2 | % | 13.7 | % | 19.7 | % | |||||||||||||||||
Return on average assets (s) / (z) | 1.09 | % | 0.96 | % | 1.38 | % | |||||||||||||||||
Adjusted return on average assets (x) / (z) | 1.13 | % | 0.97 | % | 1.43 | % | |||||||||||||||||
Efficiency ratio (FTE) (w) / [(a) + (u)] | 55.1 | % | 64.9 | % | 59.1 | % | |||||||||||||||||
Adjusted efficiency ratio (w) / [(a) + (v)] | 54.5 | % | 64.6 | % | 58.0 | % | |||||||||||||||||
Total revenue (FTE) (a) + (u) | $2,018 | $1,882 | $1,952 | ||||||||||||||||||||
Adjusted total revenue (FTE) (a) + (v) | $2,042 | $1,893 | $1,989 | ||||||||||||||||||||
Pre-provision net revenue (PPNR) (a) + (u) - (w) | $906 | $660 | $799 | ||||||||||||||||||||
Adjusted pre-provision net revenue (PPNR) (a) + (v) - (w) | $930 | $671 | $836 | ||||||||||||||||||||
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 June 30, 2022 | Commercial Banking | Branch Banking(b) | Consumer Lending(c) | Wealth and Asset Management | Other/ Eliminations | Total | |||||||||||||||||
Net interest income (FTE)(a) | $518 | $554 | $114 | $53 | $103 | $1,342 | |||||||||||||||||
Provision for credit losses | (85) | (20) | (4) | — | (70) | (179) | |||||||||||||||||
Net interest income after provision for credit losses | 433 | 534 | 110 | 53 | 33 | 1,163 | |||||||||||||||||
Noninterest income | 345 | 219 | 33 | 132 | (53) | 676 | |||||||||||||||||
Noninterest expense | (418) | (458) | (146) | (137) | 47 | (1,112) | |||||||||||||||||
Income (loss) before income taxes | 360 | 295 | (3) | 48 | 27 | 727 | |||||||||||||||||
Applicable income tax (expense) benefit(a) | (66) | (62) | 1 | (10) | (28) | (165) | |||||||||||||||||
Net income (loss) | $294 | $233 | $(2) | $38 | $(1) | $562 | |||||||||||||||||
For the three months ended March 31, 2022 | Commercial Banking | Branch Banking(b) | Consumer Lending(c) | Wealth and Asset Management | Other/ Eliminations | Total | |||||||||||||||||
Net interest income (FTE)(a) | $481 | $430 | $131 | $35 | $121 | $1,198 | |||||||||||||||||
(Provision for) benefit from credit losses | 28 | (17) | (6) | — | (50) | (45) | |||||||||||||||||
Net interest income after (provision for) benefit from credit losses | 509 | 413 | 125 | 35 | 71 | 1,153 | |||||||||||||||||
Noninterest income | 327 | 216 | 52 | 144 | (55) | 684 | |||||||||||||||||
Noninterest expense | (446) | (490) | (144) | (142) | — | (1,222) | |||||||||||||||||
Income before income taxes | 390 | 139 | 33 | 37 | 16 | 615 | |||||||||||||||||
Applicable income tax expense(a) | (72) | (30) | (7) | (8) | (4) | (121) | |||||||||||||||||
Net income | $318 | $109 | $26 | $29 | $12 | $494 | |||||||||||||||||
For the three months ended December 31, 2021 | Commercial Banking | Branch Banking(b) | Consumer Lending(c) | Wealth and Asset Management | Other/ Eliminations | Total | |||||||||||||||||
Net interest income (FTE)(a) | $390 | $316 | $147 | $24 | $323 | $1,200 | |||||||||||||||||
Benefit from (provision for) credit losses | 114 | (18) | (3) | — | (46) | 47 | |||||||||||||||||
Net interest income after benefit from (provision for) credit losses | 504 | 298 | 144 | 24 | 277 | 1,247 | |||||||||||||||||
Noninterest income | 372 | 235 | 35 | 145 | 4 | 791 | |||||||||||||||||
Noninterest expense | (431) | (471) | (157) | (139) | (8) | (1,206) | |||||||||||||||||
Income before income taxes | 445 | 62 | 22 | 30 | 273 | 832 | |||||||||||||||||
Applicable income tax expense(a) | (86) | (12) | (5) | (7) | (60) | (170) | |||||||||||||||||
Net income | $359 | $50 | $17 | $23 | $213 | $662 | |||||||||||||||||
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 | |||||||||||||||||
(a) Includes taxable equivalent adjustments of $3 million for the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021. | |||||||||||||||||||||||
(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. |