Fifth Third Bancorp Files Q3 2024 10-Q

TL;DR

**FITB Q3 10-Q filed. Financials look solid.**

AI Summary

Fifth Third Bancorp filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including assets, liabilities, and equity. Specific financial figures and operational details are presented for the third quarter of 2024.

Why It Matters

This filing provides investors and analysts with the latest official financial data for Fifth Third Bancorp, crucial for understanding the bank's performance and making informed investment decisions.

Risk Assessment

Risk Level: medium — As a large regional bank, Fifth Third Bancorp is subject to various economic and regulatory risks that can impact its financial performance.

Key Numbers

• 2024 Q3 — Reporting Period (The financial data covers the third quarter of 2024.)
• 1231 — Fiscal Year End (Indicates the end of the company's fiscal year.)

Key Players & Entities

• FIFTH THIRD BANCORP (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241105 (date) — Filing date
• CINCINNATI (location) — Company headquarters city
• OH (location) — Company headquarters state

FAQ

Key Financial Figures

• $214 billion — At September 30, 2024, the Bancorp had $214 billion in assets and operated 1,072 full-servi
• $5 billion — banking organizations with greater than $5 billion in assets to recover the losses to the
• $224 m — er the provisions of the final rule was $224 million, which was recognized in earnings
• $263 m — llocation of the special assessment was $263 million, based on the most recent informa
• $39 million — corp recorded an incremental expense of $39 million during the first six months of 2024. Th
• $200 million — share repurchase transactions totaling $200 million and $325 million, respectively. Refer t
• $325 m — transactions totaling $200 million and $325 million, respectively. Refer to Note 17 a
• $1.0 billion — y 29, 2024, the Bancorp issued and sold $1.0 billion of fixed-rate/floating-rate senior note
• $750 million — er 6, 2024, the Bancorp issued and sold $750 million of fixed-rate/floating-rate senior note
• $12.6 billion — n January 2024, the Bancorp transferred $12.6 billion (amortized cost basis) of securities fr
• $15 m — reed to pay a civil monetary penalty of $15 million, agreed to maintain existing poli
• $5 million — jurisdiction), the Bank agreed to pay a $5 million civil monetary penalty related to those
• $6 — an FTE basis. The FTE adjustments were $6 and $7 for the three months ended Septe
• $7 — basis. The FTE adjustments were $6 and $7 for the three months ended September 30
• $18 — , 2024 and 2023, respectively, and were $18 for both the nine months ended Septembe

Filing Documents

• fitb-20240930.htm (10-Q) — 7559KB
• a10qfitb-93024xexx101.htm (EX-10.1) — 39KB
• a10qfitb-93024xexx102.htm (EX-10.2) — 274KB
• a10qfitb-93024xexx103.htm (EX-10.3) — 218KB
• a10qfitb-93024xexx31i.htm (EX-31.I) — 9KB
• a10qfitb-93024xexx31ii.htm (EX-31.II) — 9KB
• a10qfitb-93024xexx32i.htm (EX-32.I) — 4KB
• a10qfitb-93024xexx32ii.htm (EX-32.II) — 5KB
• fitb-20240930_g1.jpg (GRAPHIC) — 132KB
• image_0.jpg (GRAPHIC) — 10KB
• 0000035527-24-000249.txt ( ) — 34855KB
• fitb-20240930.xsd (EX-101.SCH) — 126KB
• fitb-20240930_cal.xml (EX-101.CAL) — 200KB
• fitb-20240930_def.xml (EX-101.DEF) — 932KB
• fitb-20240930_lab.xml (EX-101.LAB) — 1341KB
• fitb-20240930_pre.xml (EX-101.PRE) — 1247KB
• fitb-20240930_htm.xml (XML) — 8728KB

Financial Information

Part I. Financial Information Glossary of Abbreviations and Acronyms 2

Management's Discussion and Analysis of Financial Condition and Results of Operations (Item 2)

Management's Discussion and Analysis of Financial Condition and Results of Operations (Item 2) 3 Overview 3 Non-GAAP Financial Measures 7 Recent Accounting Standards 9 Critical Accounting Policies 9 9 Balance Sheet Analysis 18 Business Segment Review 27 Risk Management—Overview 34 Credit Risk Management 34 Interest Rate and Price Risk Management 51 Liquidity Risk Management 56 Capital Management 58

Quantitative and Qualitative Disclosures about Market Risk (Item 3)

Quantitative and Qualitative Disclosures about Market Risk (Item 3) 60

Controls and Procedures (Item 4)

Controls and Procedures (Item 4) 60 Condensed Consolidated Financial Statements and Notes (Item 1) 61 Balance Sheets (unaudited) 61 62 63 64 66 Notes to Condensed Consolidated Financial Statements (unaudited) 67

Other Information

Part II. Other Information Legal Proceedings (Item 1) 131 Risk Factors (Item 1A) 131 Unregistered Sales of Equity Securities and Use of Proceeds (Item 2) 131 Defaults Upon Senior Securities (Item 3) 131 Mine Safety Disclosures (Item 4) 131 Other Information (Item 5) 131 Exhibits (Item 6) 132 Signature 133

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report contains statements that we believe are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. All statements other than statements of historical fact are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions or business. They usually can be identified by the use of forward-looking language such as "will likely result," "may," "are expected to," "is anticipated," "potential," "estimate," "forecast," "projected," "intends to," or may include other similar words or phrases such as "believes," "plans," "trend," "objective," "continue," "remain," or similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "might," "can," or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K, as updated by our Quarterly Reports on Form 10-Q. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) deteriorating credit quality; (2) loan concentration by location or industry of borrowers or collateral; (3) problems encountered by other financial institutions; (4) inadequate sources of funding or liquidity; (5) unfavorable actions of rating agencies; (6) inability to maintain or grow deposits; (7) limitations on the ability to rec

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Glossary of Abbreviations and Acronyms Fifth Third Bancorp provides the following list of abbreviations and acronyms as a tool for the reader that are used in Management's Discussion and Analysis of Financial Condition and Results of Operations, the Condensed Consolidated Financial Statements and the Notes to Condensed Consolidated Financial Statements. ACL : Allowance for Credit Losses FTP : Funds Transfer Pricing AFS : Available-for-Sale FTS : Fifth Third Securities, Inc. ALCO : Asset Liability Management Committee GDP : Gross Domestic Product ALLL : Allowance for Loan and Lease Losses GNMA : Government National Mortgage Association AOCI : Accumulated Other Comprehensive Income (Loss) GSE : United States Government Sponsored Enterprise APR : Annual Percentage Rate HTM : Held-to-Maturity ARM : Adjustable Rate Mortgage IPO : Initial Public Offering ASC : Accounting Standards Codification IRC : Internal Revenue Code ASU : Accounting Standards Update IRLC : Interest Rate Lock Commitment ATM : Automated Teller Machine ISDA : International Swaps and Derivatives Association, Inc. BHC : Bank Holding Company LIBOR : London Interbank Offered Rate BOLI : Bank Owned Life Insurance LIHTC : Low-Income Housing Tax Credit bps : Basis Points LLC : Limited Liability Company CD : Certificate of Deposit LTV : Loan-to-Value Ratio CDC : Fifth Third Community Development Corporation and Fifth Third MD&A : Management's Discussion and Analysis of Financial Community Development Company, LLC Condition and Results of Operations CECL : Current Expected Credit Loss MSR : Mortgage Servicing Right CET1 : Common Equity Tier 1 N/A : Not Applicable CFPB : United States Consumer Financial Protection Bureau NII : Net Interest Income C&I : Commercial and Industrial NM : Not Meaningful DCF : Discounted Cash Flow OAS : Option-Adjusted Spread DTCC : Depository Trust & Clearing Corporation OCC : Office of the

Management's Discussion and Analysis of Financial Condition and Results of Operations (Item 2)

Management's Discussion and Analysis of Financial Condition and Results of Operations (Item 2) The following is Management's Discussion and Analysis of Financial Condition and Results of Operations of certain significant factors that have affected Fifth Third Bancorp's (the "Bancorp" or "Fifth Third") financial condition and results of operations during the periods included in the Condensed Consolidated Financial Statements, which are a part of this filing. Reference to the Bancorp incorporates the parent holding company and all consolidated subsidiaries. The Bancorp's banking subsidiary is referred to as the Bank. OVERVIEW Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. At September 30, 2024, the Bancorp had $214 billion in assets and operated 1,072 full-service banking centers and 2,060 Fifth Third branded ATMs in eleven states throughout the Midwestern and Southeastern regions of the U.S. The Bancorp reports on three business segments: Commercial Banking, Consumer and Small Business Banking and Wealth and Asset Management. This overview of MD&A highlights selected information in the financial results of the Bancorp and may not contain all of the information that is important to you. For a more complete understanding of trends, events, commitments, uncertainties, liquidity, capital resources and critical accounting policies and estimates, you should carefully read this entire document as well as the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2023. Each of these items could have an impact on the Bancorp's financial condition, results of operations and cash flows. In addition, refer to the Glossary of Abbreviations and Acronyms in this report for a list of terms included as a tool for the reader of this Quarterly Report on Form 10-Q. The abbreviations and acronyms identified therein are used throughout this MD&A, as well as the Condensed Consolidated Financial Statements and Notes to

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Bancorp's estimate of its allocation of the special assessment was $263 million, based on the most recent information provided by the FDIC. As a result, the Bancorp recorded an incremental expense of $39 million during the first six months of 2024. The Bancorp currently expects to pay the special assessment to the FDIC over a total of ten quarterly assessment periods, which began with the first quarter of 2024. The estimate of the cost associated with protecting the uninsured depositors will continue to be subject to periodic adjustment until the final loss amount is determined by the FDIC. Accelerated Share Repurchase Transactions During the three and nine months ended September 30, 2024, the Bancorp entered into and settled accelerated share repurchase transactions totaling $200 million and $325 million, respectively. Refer to Note 17 and Note 25 of the Notes to Condensed Consolidated Financial Statements for additional information on share repurchase activity. Senior Notes Offerings On January 29, 2024, the Bancorp issued and sold $1.0 billion of fixed-rate/floating-rate senior notes which will mature on January 29, 2032. The senior notes will bear interest at a rate of 5.631% per annum until January 28, 2031. From January 29, 2031 until maturity, the senior notes will bear interest at a rate of compounded SOFR plus 1.840%. On September 6, 2024, the Bancorp issued and sold $750 million of fixed-rate/floating-rate senior notes which will mature on September 6, 2030. The senior notes will bear interest at a rate of 4.895% per annum until September 5, 2029. From September 6, 2029 until maturity, the senior notes will bear interest at a rate of compounded SOFR plus 1.486%. Refer to Note 16 of the Notes to Condensed Consolidated Financial Statements for more information. Transfer of Securities In January 2024, the Bancorp transferred $12.6 billion (amortize

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Return on Average Common Equity, Excluding AOCI (non-GAAP): Net income available to common shareholders divided by total equity, excluding AOCI and preferred stock Net Interest Margin (non-GAAP): Net interest income on an FTE basis divided by average interest-earning assets Efficiency Ratio (non-GAAP): Noninterest expense divided by the sum of net interest income on an FTE basis and noninterest income Earnings Per Share, Diluted: Net income allocated to common shareholders divided by average common shares outstanding after the effect of dilutive stock-based awards Nonperforming Portfolio Assets Ratio: Nonperforming portfolio assets divided by portfolio loans and leases and OREO Net Charge-off Ratio: Net losses charged-off divided by average portfolio loans and leases Return on Average Assets: Net income divided by average assets Loan-to-Deposit Ratio: Total loans divided by total deposits Household Growth: Change in the number of consumer households with retail relationship-based checking accounts The list of indicators above is intended to summarize some of the most important metrics utilized by management in evaluating the Bancorp's performance and does not represent an all-inclusive list of all performance measures that may be considered relevant or important to management or investors. TABLE 1: Earnings Summary For the three months ended September 30, % For the nine months ended September 30, % ($ in millions, except for per share data) 2024 2023 Change 2024 2023 Change Income Statement Data Net interest income (U.S. GAAP) $ 1,421 1,438 (1) $ 4,192 4,411 (5) Net interest income (FTE) (a)(b) 1,427 1,445 (1) 4,210 4,429 (5) Noninterest income 711 715 (1) 2,117 2,137 (1) Total revenue (FTE) (a)(b) 2,138 2,160 (1) 6,327 6,566 (4) Provision for credit losses 160 119 34 351 460 (24) Noninterest expense 1,244 1,188 5 3,807 3,750 2 Net income 573 6

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) average interest-earning assets. Net interest margin on an FTE basis (non-GAAP) was 2.90% and 2.88% for the three and nine months ended September 30, 2024, respectively, compared to 2.98% and 3.12% for the comparable periods in the prior year. The provision for credit losses was $160 million and $351 million for t

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View this 10-Q filing on SEC EDGAR