Key Financial Data | Key Highlights | |||||
$ millions for all balance sheet and income statement items | ||||||
2Q21
|
1Q21
|
2Q20
|
Select Business Highlights:
•Launched Fifth Third Momentum Banking across footprint - a fintech banking solution with Early Pay, Extra Time, smart savings, and other features with no monthly fee
•Announced acquisition of Provide, a leading fintech company serving healthcare practices (expect to close early August 2021)
•Generated consumer household growth of 4% vs. 2Q20
•Published second annual ESG report on June 30th
Select Financial Highlights:
(2Q21 versus 1Q21 where applicable)
•ROTCE(a) of 16.6%; adjusted ROTCE(a) of 19.7% excl. AOCI
•PPNR(a) increased 12%; adjusted PPNR(a) increased 15%
•Historically low NCO ratio of 0.16% reflecting improvements in both commercial and consumer
•Benefit to credit losses and resulting reserve coverage reflects improved macroeconomic environment and strong credit results; NPA ratio improved 11 bps
•Repurchased shares totaling $347 million; capital plans support repurchase of shares totaling approximately $850 million in 2H21; continue to target 9.5% CET1 by June 2022
| |||
Income Statement Data | ||||||
Net income available to common shareholders | $674 | $674 | $163 | |||
Net interest income (U.S. GAAP) | 1,208 | 1,176 | 1,200 | |||
Net interest income (FTE)(a)
| 1,211 | 1,179 | 1,203 | |||
Noninterest income | 741 | 749 | 650 | |||
Noninterest expense | 1,153 | 1,215 | 1,121 | |||
Per Share Data | ||||||
Earnings per share, basic | $0.95 | $0.94 | $0.23 | |||
Earnings per share, diluted | 0.94 | 0.93 | 0.23 | |||
Book value per share | 29.57 | 28.78 | 28.88 | |||
Tangible book value per share(a)
| 23.34 | 22.60 | 22.66 | |||
Balance Sheet & Credit Quality | ||||||
Average portfolio loans and leases | $108,534 | $108,956 | $118,506 | |||
Average deposits | 162,619 | 158,888 | 150,598 | |||
Net charge-off ratio(b)
| 0.16 | % | 0.27 | % | 0.44 | % |
Nonperforming asset ratio(c)
| 0.61 | 0.72 | 0.65 | |||
Financial Ratios | ||||||
Return on average assets | 1.38 | % | 1.38 | % | 0.40 | % |
Return on average common equity | 13.0 | 13.1 | 3.2 | |||
Return on average tangible common equity(a)
| 16.6 | 16.8 | 4.3 | |||
CET1 capital(d)(e)
| 10.37 | 10.46 | 9.72 | |||
Net interest margin(a)
| 2.63 | 2.62 | 2.75 | |||
Efficiency(a)
| 59.1 | 63.0 | 60.5 | |||
Other than the Quarterly Financial Review tables beginning on page 14, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Industry Guide 3 that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis.
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CEO Commentary |
Income Statement Highlights | |||||
($ in millions, except per share data) | For the Three Months Ended | % Change | |||
June | March | June | |||
2021 | 2021 | 2020 | Seq | Yr/Yr | |
Condensed Statements of Income | |||||
Net interest income (NII)(a)
| $1,211 | $1,179 | $1,203 | 3% | 1% |
(Benefit from) provision for credit losses | (115) | (173) | 485 | (34)% | NM |
Noninterest income | 741 | 749 | 650 | (1)% | 14% |
Noninterest expense | 1,153 | 1,215 | 1,121 | (5)% | 3% |
Income before income taxes(a)
| $914 | $886 | $247 | 3% | 270% |
Taxable equivalent adjustment | $3 | $3 | $3 | - | - |
Applicable income tax expense | 202 | 189 | 49 | 7% | 312% |
Net income | $709 | $694 | $195 | 2% | 264% |
Dividends on preferred stock | 35 | 20 | 32 | 75% | 9% |
Net income available to common shareholders | $674 | $674 | $163 | - | 313% |
Earnings per share, diluted | $0.94 | $0.93 | $0.23 | 1% | 309% |
Net Interest Income | ||||||||
(FTE; $ in millions)(a)
| For the Three Months Ended | % Change | ||||||
June | March | June | ||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | ||||
Interest Income | ||||||||
Interest income | $1,326 | $1,305 | $1,406 | 2% | (6)% | |||
Interest expense | 115 | 126 | 203 | (9)% | (43)% | |||
Net interest income (NII) | $1,211 | $1,179 | $1,203 | 3% | 1% | |||
Average Yield/Rate Analysis | bps Change | |||||||
Yield on interest-earning assets | 2.88 | % | 2.90 | % | 3.21 | % | (2) | (33) |
Rate paid on interest-bearing liabilities | 0.40 | % | 0.44 | % | 0.66 | % | (4) | (26) |
Ratios | ||||||||
Net interest rate spread | 2.48 | % | 2.46 | % | 2.55 | % | 2 | (7) |
Net interest margin (NIM) | 2.63 | % | 2.62 | % | 2.75 | % | 1 | (12) |
Noninterest Income | |||||
($ in millions) | For the Three Months Ended | % Change | |||
June | March | June | |||
2021 | 2021 | 2020 | Seq | Yr/Yr | |
Noninterest Income | |||||
Service charges on deposits | $149 | $144 | $122 | 3% | 22% |
Commercial banking revenue | 160 | 153 | 137 | 5% | 17% |
Mortgage banking net revenue | 64 | 85 | 99 | (25)% | (35)% |
Wealth and asset management revenue | 145 | 143 | 120 | 1% | 21% |
Card and processing revenue | 102 | 94 | 82 | 9% | 24% |
Leasing business revenue | 61 | 87 | 57 | (30)% | 7% |
Other noninterest income | 49 | 42 | 12 | 17% | 308% |
Securities gains, net | 10 | 3 | 21 | 233% | (52)% |
Securities gains (losses), net - non-qualifying hedges | |||||
on mortgage servicing rights | 1 | (2) | - | NM | NM |
Total noninterest income | $741 | $749 | $650 | (1)% | 14% |
Noninterest Income excluding certain items | ||||||
($ in millions) | For the Three Months Ended | |||||
June | March | June | ||||
2021 | 2021 | 2020 | ||||
Noninterest Income excluding certain items | ||||||
Noninterest income (U.S. GAAP) | $741 | $749 | $650 | |||
Valuation of Visa total return swap | 37 | 13 | 29 | |||
Branch and non-branch real estate charges | - | - | 12 | |||
Securities (gains), net | (10) | (3) | (21) | |||
Noninterest income excluding certain items(a)
| $768 | $759 | $670 | |||
Noninterest Expense | ||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||
June | March | June | ||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | ||||
Noninterest Expense | ||||||||
Compensation and benefits | $638 | $706 | $627 | (10)% | 2% | |||
Net occupancy expense | 77 | 79 | 82 | (3)% | (6)% | |||
Technology and communications | 94 | 93 | 90 | 1% | 4% | |||
Equipment expense | 34 | 34 | 32 | - | 6% | |||
Card and processing expense | 20 | 30 | 29 | (33)% | (31)% | |||
Leasing business expense | 33 | 35 | 33 | (6)% | - | |||
Marketing expense | 20 | 23 | 20 | (13)% | - | |||
Other noninterest expense | 237 | 215 | 208 | 10% | 14% | |||
Total noninterest expense | $1,153 | $1,215 | $1,121 | (5)% | 3% | |||
Noninterest Expense excluding certain items | ||||||
($ in millions) | For the Three Months Ended | |||||
June | March | June | ||||
2021 | 2021 | 2020 | ||||
Noninterest Expense excluding certain items | ||||||
Noninterest expense (U.S. GAAP) | $1,153 | $1,215 | $1,121 | |||
Merger-related expenses | - | - | (9) | |||
FHLB debt extinguishment charge | - | - | (6) | |||
Noninterest expense excluding certain items(a)
| $1,153 | $1,215 | $1,106 |
Average Interest-Earning Assets | ||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||
June | March | June | ||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | ||||
Average Portfolio Loans and Leases | ||||||||
Commercial loans and leases: | ||||||||
Commercial and industrial loans | $48,773 | $49,629 | $59,040 | (2)% | (17)% | |||
Commercial mortgage loans | 10,459 | 10,532 | 11,222 | (1)% | (7)% | |||
Commercial construction loans | 6,043 | 6,039 | 5,548 | - | 9% | |||
Commercial leases | 3,174 | 3,114 | 3,056 | 2% | 4% | |||
Total commercial loans and leases | $68,449 | $69,314 | $78,866 | (1)% | (13)% | |||
Consumer loans: | ||||||||
Residential mortgage loans | $15,883 | $15,803 | $16,561 | 1% | (4)% | |||
Home equity | 4,674 | 5,009 | 5,820 | (7)% | (20)% | |||
Indirect secured consumer loans | 14,702 | 13,955 | 12,124 | 5% | 21% | |||
Credit card | 1,770 | 1,879 | 2,248 | (6)% | (21)% | |||
Other consumer loans | 3,056 | 2,996 | 2,887 | 2% | 6% | |||
Total consumer loans | $40,085 | $39,642 | $39,640 | 1% | 1% | |||
Total average portfolio loans and leases | $108,534 | $108,956 | $118,506 | - | (8)% | |||
Average Loans and Leases Held for Sale | ||||||||
Commercial loans and leases held for sale | $52 | $104 | $68 | (50)% | (24)% | |||
Consumer loans held for sale | 5,857 | 4,641 | 844 | 26% | 594% | |||
Total average loans and leases held for sale | $5,909 | $4,745 | $912 | 25% | 548% | |||
Securities (taxable and tax-exempt) | $36,917 | $36,297 | $36,973 | 2% | - | |||
Other short-term investments | 33,558 | 32,717 | 19,833 | 3% | 69% | |||
Total average interest-earning assets | $184,918 | $182,715 | $176,224 | 1% | 5% | |||
Average Deposits | ||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||
June | March | June | ||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | ||||
Average Deposits | ||||||||
Demand | $61,994 | $58,586 | $45,761 | 6% | 35% | |||
Interest checking | 45,307 | 45,568 | 49,760 | (1)% | (9)% | |||
Savings | 20,494 | 18,951 | 16,354 | 8% | 25% | |||
Money market | 30,844 | 30,601 | 30,022 | 1% | 3% | |||
Foreign office(g)
| 140 | 128 | 182 | 9% | (23)% | |||
Total transaction deposits | $158,779 | $153,834 | $142,079 | 3% | 12% | |||
Other time | 2,696 | 3,045 | 4,421 | (11)% | (39)% | |||
Total core deposits | $161,475 | $156,879 | $146,500 | 3% | 10% | |||
Certificates - $100,000 and over | 1,144 | 2,009 | 4,067 | (43)% | (72)% | |||
Other deposits | - | - | 31 | NM | (100)% | |||
Total average deposits | $162,619 | $158,888 | $150,598 | 2% | 8% | |||
Average Wholesale Funding | ||||||||
($ in millions) | For the Three Months Ended | % Change | ||||||
June | March | June | ||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | ||||
Average Wholesale Funding | ||||||||
Certificates - $100,000 and over | $1,144 | $2,009 | $4,067 | (43)% | (72)% | |||
Other deposits | - | - | 31 | NM | (100)% | |||
Federal funds purchased | 346 | 324 | 309 | 7% | 12% | |||
Other short-term borrowings | 1,097 | 1,209 | 2,377 | (9)% | (54)% | |||
Long-term debt | 13,883 | 14,849 | 16,955 | (7)% | (18)% | |||
Total average wholesale funding | $16,470 | $18,391 | $23,739 | (10)% | (31)% | |||
Credit Quality Summary | |||||||||||||||
($ in millions) | As of and For the Three Months Ended | ||||||||||||||
June | March | December | September | June | |||||||||||
2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||
Total nonaccrual portfolio loans and leases (NPLs) | $621 | $741 | $834 | $891 | $700 | ||||||||||
Repossessed property | 5 | 7 | 9 | 7 | 4 | ||||||||||
OREO | 31 | 35 | 21 | 33 | 43 | ||||||||||
Total nonperforming portfolio loans and leases and OREO (NPAs) | $657 | $783 | $864 | $931 | $747 | ||||||||||
NPL ratio(h)
| 0.58 | % | 0.68 | % | 0.77 | % | 0.80 | % | 0.61 | % | |||||
NPA ratio(c)
| 0.61 | % | 0.72 | % | 0.79 | % | 0.84 | % | 0.65 | % | |||||
Total loans and leases 30-89 days past due (accrual) | $281 | $305 | $357 | $323 | $381 | ||||||||||
Total loans and leases 90 days past due (accrual) | 83 | 124 | 163 | 139 | 136 | ||||||||||
Allowance for loan and lease losses (ALLL), beginning | $2,208 | $2,453 | $2,574 | $2,696 | $2,348 | ||||||||||
Total net losses charged-off | (44) | (71) | (118) | (101) | (130) | ||||||||||
(Benefit from) provision for loan and lease losses | (131) | (174) | (3) | (21) | 478 | ||||||||||
ALLL, ending | $2,033 | $2,208 | $2,453 | $2,574 | $2,696 | ||||||||||
Reserve for unfunded commitments, beginning | $173 | $172 | $182 | $176 | $169 | ||||||||||
Provision for (benefit from) the reserve for unfunded commitments | 16 | 1 | (10) | 6 | 7 | ||||||||||
Reserve for unfunded commitments, ending | $189 | $173 | $172 | $182 | $176 | ||||||||||
Total allowance for credit losses (ACL) | $2,222 | $2,381 | $2,625 | $2,756 | $2,872 | ||||||||||
ACL ratios: | |||||||||||||||
As a % of portfolio loans and leases | 2.06 | % | 2.19 | % | 2.41 | % | 2.49 | % | 2.50 | % | |||||
As a % of nonperforming portfolio loans and leases | 358 | % | 321 | % | 315 | % | 309 | % | 410 | % | |||||
As a % of nonperforming portfolio assets | 338 | % | 304 | % | 304 | % | 296 | % | 385 | % | |||||
ALLL as a % of portfolio loans and leases | 1.89 | % | 2.03 | % | 2.25 | % | 2.32 | % | 2.34 | % | |||||
Total losses charged-off | $(103) | $(109) | $(154) | $(135) | $(163) | ||||||||||
Total recoveries of losses previously charged-off | 59 | 38 | 36 | 34 | 33 | ||||||||||
Total net losses charged-off | $(44) | $(71) | $(118) | $(101) | $(130) | ||||||||||
Net charge-off ratio (NCO ratio)(b)
| 0.16 | % | 0.27 | % | 0.43 | % | 0.35 | % | 0.44 | % | |||||
Commercial NCO ratio | 0.10 | % | 0.17 | % | 0.40 | % | 0.33 | % | 0.40 | % | |||||
Consumer NCO ratio | 0.26 | % | 0.43 | % | 0.47 | % | 0.40 | % | 0.52 | % | |||||
Capital Position | ||||||||
As of and For the Three Months Ended | ||||||||
June | March | December | September | June | ||||
2021 | 2021 | 2020 | 2020 | 2020 | ||||
Capital Position | ||||||||
Average total Bancorp shareholders' equity as a % of average assets | 11.11 | % | 11.26 | % | 11.34% | 11.33% | 11.30 | % |
Tangible equity(a)
| 8.35 | % | 8.20 | % | 8.18% | 8.09% | 7.68 | % |
Tangible common equity (excluding AOCI)(a)
| 7.28 | % | 7.14 | % | 7.11% | 6.99% | 6.77 | % |
Tangible common equity (including AOCI)(a)
| 8.18 | % | 7.95 | % | 8.29% | 8.31% | 8.13 | % |
Regulatory Capital Ratios(d)(e)
| ||||||||
CET1 capital
| 10.37 | % | 10.46 | % | 10.34% | 10.14% | 9.72 | % |
Tier I risk-based capital
| 11.83 | % | 11.94 | % | 11.83% | 11.64% | 10.96 | % |
Total risk-based capital
| 14.60 | % | 14.80 | % | 15.08% | 14.93% | 14.24 | % |
Tier I leverage | 8.55 | % | 8.61 | % | 8.49% | 8.37% | 8.16 | % |
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 | ||||||||
2021 | 2021 | 2020 | Seq | Yr/Yr | 2021 | 2020 | Yr/Yr | ||||||
Income Statement Data | |||||||||||||
Net interest income | $1,208 | $1,176 | $1,200 | 3% | 1% | $2,385 | $2,429 | (2%) | |||||
Net interest income (FTE)(a)
| 1,211 | 1,179 | 1,203 | 3% | 1% | 2,391 | 2,436 | (2%) | |||||
Noninterest income | 741 | 749 | 650 | (1%) | 14% | 1,490 | 1,321 | 13% | |||||
Total revenue (FTE)(a)
| 1,952 | 1,928 | 1,853 | 1% | 5% | 3,881 | 3,757 | 3% | |||||
(Benefit from) provision for credit losses | (115) | (173) | 485 | (34%) | NM | (288) | 1,125 | NM | |||||
Noninterest expense | 1,153 | 1,215 | 1,121 | (5%) | 3% | 2,369 | 2,321 | 2% | |||||
Net income | 709 | 694 | 195 | 2% | 264% | 1,403 | 243 | 477% | |||||
Net income available to common shareholders | 674 | 674 | 163 | - | 313% | 1,348 | 193 | 598% | |||||
Earnings Per Share Data | |||||||||||||
Net income allocated to common shareholders | $673 | $672 | $162 | - | 315% | $1,344 | $191 | 604% | |||||
Average common shares outstanding (in thousands): | |||||||||||||
Basic | 708,833 | 714,433 | 714,767 | (1%) | (1%) | 711,617 | 714,161 | - | |||||
Diluted | 718,085 | 723,425 | 717,572 | (1%) | - | 720,740 | 718,967 | - | |||||
Earnings per share, basic | $0.95 | $0.94 | $0.23 | 1% | 313% | $1.89 | $0.27 | 600% | |||||
Earnings per share, diluted | 0.94 | 0.93 | 0.23 | 1% | 309% | 1.87 | 0.27 | 593% | |||||
Common Share Data | |||||||||||||
Cash dividends per common share | $0.27 | $0.27 | $0.27 | - | - | $0.54 | $0.54 | - | |||||
Book value per share | 29.57 | 28.78 | 28.88 | 3% | 2% | 29.57 | 28.88 | 2% | |||||
Market value per share | 38.23 | 37.45 | 19.28 | 2% | 98% | 38.23 | 19.28 | 98% | |||||
Common shares outstanding (in thousands) | 703,740 | 711,596 | 712,202 | (1%) | (1%) | 703,740 | 712,202 | (1%) | |||||
Market capitalization | $26,904 | $26,649 | $13,731 | 1% | 96% | $26,904 | $13,731 | 96% | |||||
Financial Ratios | |||||||||||||
Return on average assets | 1.38 | % | 1.38 | % | 0.40 | % | - | 98 | 1.38 | % | 0.26 | % | 112 |
Return on average common equity | 13.0 | % | 13.1 | % | 3.2 | % | (10) | 980 | 13.1 | % | 1.9 | % | NM |
Return on average tangible common equity(a)
| 16.6 | % | 16.8 | % | 4.3 | % | (20) | NM | 16.7 | % | 2.7 | % | NM |
Noninterest income as a percent of total revenue(a)
| 38 | % | 39 | % | 35 | % | (100) | 300 | 38 | % | 35 | % | 300 |
Dividend payout | 28.4 | % | 28.7 | % | 117.4 | % | (30) | NM | 28.6 | % | 200.0 | % | NM |
Average total Bancorp shareholders' equity as a percent of average assets | 11.11 | % | 11.26 | % | 11.30 | % | (15) | (19) | 11.18 | % | 11.92 | % | (74) |
Tangible common equity(a)
| 7.28 | % | 7.14 | % | 6.77 | % | 14 | 51 | 7.28 | % | 6.76 | % | 52 |
Net interest margin (FTE)(a)
| 2.63 | % | 2.62 | % | 2.75 | % | 1 | (12) | 2.62 | % | 2.99 | % | (37) |
Efficiency (FTE)(a)
| 59.1 | % | 63.0 | % | 60.5 | % | (390) | (140) | 61.0 | % | 61.8 | % | (80) |
Effective tax rate | 22.1 | % | 21.4 | % | 19.9 | % | 70 | 220 | 21.8 | % | 20.4 | % | 140 |
Credit Quality | |||||||||||||
Net losses charged-off | $44 | $71 | $130 | (38 | %) | (66 | %) | $115 | $252 | (54 | %) | ||
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.16 | % | 0.27 | % | 0.44 | % | (11) | (28) | 0.21 | % | 0.44 | % | (23) |
ALLL as a percent of portfolio loans and leases | 1.89 | % | 2.03 | % | 2.34 | % | (14) | (45) | 1.89 | % | 2.34 | % | (45) |
ACL as a percent of portfolio loans and leases(g)
| 2.06 | % | 2.19 | % | 2.50 | % | (13) | (44) | 2.06 | % | 2.50 | % | (44) |
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO | 0.61 | % | 0.72 | % | 0.65 | % | (11) | (4) | 0.61 | % | 0.65 | % | (4) |
Average Balances | |||||||||||||
Loans and leases, including held for sale | $114,443 | $113,701 | $119,418 | 1% | (4%) | $114,074 | $115,799 | (1%) | |||||
Securities and other short-term investments | 70,475 | 69,014 | 56,806 | 2% | 24% | 69,749 | 47,920 | 46% | |||||
Assets | 206,353 | 203,836 | 198,387 | 1% | 4% | 205,102 | 185,129 | 11% | |||||
Transaction deposits(b)
| 158,779 | 153,834 | 142,079 | 3% | 12% | 156,321 | 130,087 | 20% | |||||
Core deposits(c)
| 161,475 | 156,879 | 146,500 | 3% | 10% | 159,191 | 134,838 | 18% | |||||
Wholesale funding(d)
| 16,470 | 18,391 | 23,739 | (10%) | (31%) | 17,424 | 22,786 | (24%) | |||||
Bancorp shareholders' equity | 22,927 | 22,952 | 22,420 | - | 2% | 22,939 | 22,066 | 4% | |||||
Regulatory Capital Ratios(e)(f)
| |||||||||||||
CET1 capital
| 10.37 | % | 10.46 | % | 9.72 | % | (9) | 65 | 10.37 | % | 9.72 | % | 65 |
Tier I risk-based capital
| 11.83 | % | 11.94 | % | 10.96 | % | (11) | 87 | 11.83 | % | 10.96 | % | 87 |
Total risk-based capital
| 14.60 | % | 14.80 | % | 14.24 | % | (20) | 36 | 14.60 | % | 14.24 | % | 36 |
Tier I leverage | 8.55 | % | 8.61 | % | 8.16 | % | (6) | 39 | 8.55 | % | 8.16 | % | 39 |
Operations | |||||||||||||
Banking centers | 1,096 | 1,098 | 1,122 | - | (2%) | 1,096 | 1,122 | (2%) | |||||
ATMs | 2,369 | 2,383 | 2,456 | (1%) | (4%) | 2,369 | 2,456 | (4%) | |||||
Full-time equivalent employees | 19,402 | 19,819 | 20,340 | (2%) | (5%) | 19,402 | 20,340 | (5%) |
Fifth Third Bancorp and Subsidiaries | ||||||||||
Financial Highlights | ||||||||||
$ in millions, except per share data | For the Three Months Ended | |||||||||
(unaudited) | June | March | December | September | June | |||||
2021 | 2021 | 2020 | 2020 | 2020 | ||||||
Income Statement Data | ||||||||||
Net interest income | $1,208 | $1,176 | $1,182 | $1,170 | $1,200 | |||||
Net interest income (FTE)(a)
| 1,211 | 1,179 | 1,185 | 1,173 | 1,203 | |||||
Noninterest income | 741 | 749 | 787 | 722 | 650 | |||||
Total revenue (FTE)(a)
| 1,952 | 1,928 | 1,972 | 1,895 | 1,853 | |||||
(Benefit from) provision for credit losses | (115) | (173) | (13) | (15) | 485 | |||||
Noninterest expense | 1,153 | 1,215 | 1,236 | 1,161 | 1,121 | |||||
Net income | 709 | 694 | 604 | 581 | 195 | |||||
Net income available to common shareholders | 674 | 674 | 569 | 562 | 163 | |||||
Earnings Per Share Data | ||||||||||
Net income allocated to common shareholders | $673 | $672 | $567 | $560 | $162 | |||||
Average common shares outstanding (in thousands): | ||||||||||
Basic | 708,833 | 714,433 | 715,482 | 715,102 | 714,767 | |||||
Diluted | 718,085 | 723,425 | 722,096 | 718,894 | 717,572 | |||||
Earnings per share, basic | $0.95 | $0.94 | $0.79 | $0.78 | $0.23 | |||||
Earnings per share, diluted | 0.94 | 0.93 | 0.78 | 0.78 | 0.23 | |||||
Common Share Data | ||||||||||
Cash dividends per common share | $0.27 | $0.27 | $0.27 | $0.27 | $0.27 | |||||
Book value per share | 29.57 | 28.78 | 29.46 | 29.25 | 28.88 | |||||
Market value per share | 38.23 | 37.45 | 27.57 | 21.32 | 19.28 | |||||
Common shares outstanding (in thousands) | 703,740 | 711,596 | 712,760 | 712,328 | 712,202 | |||||
Market capitalization | $26,904 | $26,649 | $19,651 | $15,187 | $13,731 | |||||
Financial Ratios | ||||||||||
Return on average assets | 1.38 | % | 1.38 | % | 1.18 | % | 1.14 | % | 0.40 | % |
Return on average common equity | 13.0 | % | 13.1 | % | 10.8 | % | 10.7 | % | 3.2 | % |
Return on average tangible common equity(a)
| 16.6 | % | 16.8 | % | 13.9 | % | 13.8 | % | 4.3 | % |
Noninterest income as a percent of total revenue(a)
| 38 | % | 39 | % | 40 | % | 38 | % | 35 | % |
Dividend payout | 28.4 | % | 28.7 | % | 34.2 | % | 34.6 | % | 117.4 | % |
Average total Bancorp shareholders' equity as a percent of average assets | 11.11 | % | 11.26 | % | 11.34 | % | 11.33 | % | 11.30 | % |
Tangible common equity(a)
| 7.28 | % | 7.14 | % | 7.11 | % | 6.99 | % | 6.77 | % |
Net interest margin (FTE)(a)
| 2.63 | % | 2.62 | % | 2.58 | % | 2.58 | % | 2.75 | % |
Efficiency (FTE)(a)
| 59.1 | % | 63.0 | % | 62.7 | % | 61.3 | % | 60.5 | % |
Effective tax rate | 22.1 | % | 21.4 | % | 19.1 | % | 22.1 | % | 19.9 | % |
Credit Quality | ||||||||||
Net losses charged-off | $44 | $71 | $118 | $101 | $130 | |||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.16 | % | 0.27 | % | 0.43 | % | 0.35 | % | 0.44 | % |
ALLL as a percent of portfolio loans and leases | 1.89 | % | 2.03 | % | 2.25 | % | 2.32 | % | 2.34 | % |
ACL as a percent of portfolio loans and leases(g)
| 2.06 | % | 2.19 | % | 2.41 | % | 2.49 | % | 2.50 | % |
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO | 0.61 | % | 0.72 | % | 0.79 | % | 0.84 | % | 0.65 | % |
Average Balances | ||||||||||
Loans and leases, including held for sale | $114,443 | $113,701 | $111,464 | $114,613 | $119,418 | |||||
Securities and other short-term investments | 70,475 | 69,014 | 70,954 | 66,091 | 56,806 | |||||
Assets | 206,353 | 203,836 | 203,930 | 202,533 | 198,387 | |||||
Transaction deposits(b)
| 158,779 | 153,834 | 153,053 | 148,567 | 142,079 | |||||
Core deposits(c)
| 161,475 | 156,879 | 156,326 | 152,278 | 146,500 | |||||
Wholesale funding(d)
| 16,470 | 18,391 | 18,716 | 21,762 | 23,739 | |||||
Bancorp shareholders' equity | 22,927 | 22,952 | 23,126 | 22,952 | 22,420 | |||||
Regulatory Capital Ratios(e)(f)
| ||||||||||
CET1 capital
| 10.37 | % | 10.46 | % | 10.34 | % | 10.14 | % | 9.72 | % |
Tier I risk-based capital
| 11.83 | % | 11.94 | % | 11.83 | % | 11.64 | % | 10.96 | % |
Total risk-based capital
| 14.60 | % | 14.80 | % | 15.08 | % | 14.93 | % | 14.24 | % |
Tier I leverage | 8.55 | % | 8.61 | % | 8.49 | % | 8.37 | % | 8.16 | % |
Operations | ||||||||||
Banking centers | 1,096 | 1,098 | 1,134 | 1,122 | 1,122 | |||||
ATMs | 2,369 | 2,383 | 2,397 | 2,414 | 2,456 | |||||
Full-time equivalent employees | 19,402 | 19,819 | 19,872 | 20,283 | 20,340 |
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 | |||
2021 | 2021 | 2020 | Seq | Yr/Yr | 2021 | 2020 | Yr/Yr | |
Interest Income | ||||||||
Interest and fees on loans and leases | $1,035 | $1,030 | $1,115 | - | (7%) | $2,064 | $2,350 | (12%) |
Interest on securities | 279 | 264 | 283 | 6% | (1%) | 543 | 566 | (4%) |
Interest on other short-term investments | 9 | 8 | 5 | 13% | 80% | 17 | 12 | 42% |
Total interest income | 1,323 | 1,302 | 1,403 | 2% | (6%) | 2,624 | 2,928 | (10%) |
Interest Expense | ||||||||
Interest on deposits | 15 | 21 | 83 | (29%) | (82%) | 36 | 248 | (85%) |
Interest on federal funds purchased | - | - | - | NM | NM | - | 2 | (100%) |
Interest on other short-term borrowings | - | 1 | 2 | (100%) | (100%) | 1 | 8 | (88%) |
Interest on long-term debt | 100 | 104 | 118 | (4%) | (15%) | 202 | 241 | (16%) |
Total interest expense | 115 | 126 | 203 | (9%) | (43%) | 239 | 499 | (52%) |
Net Interest Income | 1,208 | 1,176 | 1,200 | 3% | 1% | 2,385 | 2,429 | (2%) |
(Benefit from) provision for credit losses | (115) | (173) | 485 | (34%) | NM | (288) | 1,125 | NM |
Net Interest Income After Provision for Credit Losses | 1,323 | 1,349 | 715 | (2%) | 85% | 2,673 | 1,304 | 105% |
Noninterest Income | ||||||||
Service charges on deposits | 149 | 144 | 122 | 3% | 22% | 292 | 270 | 8% |
Commercial banking revenue | 160 | 153 | 137 | 5% | 17% | 313 | 261 | 20% |
Mortgage banking net revenue | 64 | 85 | 99 | (25%) | (35%) | 149 | 219 | (32%) |
Wealth and asset management revenue | 145 | 143 | 120 | 1% | 21% | 288 | 255 | 13% |
Card and processing revenue | 102 | 94 | 82 | 9% | 24% | 196 | 167 | 17% |
Leasing business revenue | 61 | 87 | 57 | (30%) | 7% | 148 | 131 | 13% |
Other noninterest income | 49 | 42 | 12 | 17% | 308% | 92 | 18 | 411% |
Securities gains (losses), net | 10 | 3 | 21 | 233% | (52%) | 13 | (3) | NM |
Securities (losses) gains, net - non-qualifying hedges on mortgage servicing rights | 1 | (2) | - | NM | NM | (1) | 3 | NM |
Total noninterest income | 741 | 749 | 650 | (1%) | 14% | 1,490 | 1,321 | 13% |
Noninterest Expense | ||||||||
Compensation and benefits | 638 | 706 | 627 | (10%) | 2% | 1,343 | 1,274 | 5% |
Net occupancy expense | 77 | 79 | 82 | (3%) | (6%) | 156 | 164 | (5%) |
Technology and communications | 94 | 93 | 90 | 1% | 4% | 187 | 183 | 2% |
Equipment expense | 34 | 34 | 32 | - | 6% | 68 | 64 | 6% |
Card and processing expense | 20 | 30 | 29 | (33%) | (31%) | 50 | 60 | (17%) |
Leasing business expense | 33 | 35 | 33 | (6%) | - | 68 | 68 | - |
Marketing expense | 20 | 23 | 20 | (13%) | - | 43 | 51 | (16%) |
Other noninterest expense | 237 | 215 | 208 | 10% | 14% | 454 | 457 | (1%) |
Total noninterest expense | 1,153 | 1,215 | 1,121 | (5%) | 3% | 2,369 | 2,321 | 2% |
Income Before Income Taxes | 911 | 883 | 244 | 3% | 273% | 1,794 | 304 | 490% |
Applicable income tax expense | 202 | 189 | 49 | 7% | 312% | 391 | 61 | 541% |
Net Income | 709 | 694 | 195 | 2% | 264% | 1,403 | 243 | 477% |
Dividends on preferred stock | 35 | 20 | 32 | 75% | 9% | 55 | 50 | 10% |
Net Income Available to Common Shareholders | $674 | $674 | $163 | - | 313% | $1,348 | $193 | 598% |
Fifth Third Bancorp and Subsidiaries | |||||
Consolidated Statements of Income | |||||
$ in millions | For the Three Months Ended | ||||
(unaudited) | June | March | December | September | June |
2021 | 2021 | 2020 | 2020 | 2020 | |
Interest Income | |||||
Interest and fees on loans and leases | $1,035 | $1,030 | $1,028 | $1,047 | $1,115 |
Interest on securities | 279 | 264 | 278 | 274 | 283 |
Interest on other short-term investments | 9 | 8 | 9 | 8 | 5 |
Total interest income | 1,323 | 1,302 | 1,315 | 1,329 | 1,403 |
Interest Expense | |||||
Interest on deposits | 15 | 21 | 27 | 46 | 83 |
Interest on other short-term borrowings | - | 1 | 1 | 5 | 2 |
Interest on long-term debt | 100 | 104 | 105 | 108 | 118 |
Total interest expense | 115 | 126 | 133 | 159 | 203 |
Net Interest Income | 1,208 | 1,176 | 1,182 | 1,170 | 1,200 |
(Benefit from) provision for credit losses | (115) | (173) | (13) | (15) | 485 |
Net Interest Income After Provision for Credit Losses | 1,323 | 1,349 | 1,195 | 1,185 | 715 |
Noninterest Income | |||||
Service charges on deposits | 149 | 144 | 146 | 144 | 122 |
Commercial banking revenue | 160 | 153 | 141 | 125 | 137 |
Mortgage banking net revenue | 64 | 85 | 25 | 76 | 99 |
Wealth and asset management revenue | 145 | 143 | 133 | 132 | 120 |
Card and processing revenue | 102 | 94 | 92 | 92 | 82 |
Leasing business revenue | 61 | 87 | 69 | 77 | 57 |
Other noninterest income | 49 | 42 | 168 | 26 | 12 |
Securities gains, net | 10 | 3 | 14 | 51 | 21 |
Securities gains (losses), net - non-qualifying hedges on mortgage servicing rights | 1 | (2) | (1) | (1) | - |
Total noninterest income | 741 | 749 | 787 | 722 | 650 |
Noninterest Expense | |||||
Compensation and benefits | 638 | 706 | 679 | 637 | 627 |
Net occupancy expense | 77 | 79 | 98 | 90 | 82 |
Technology and communications | 94 | 93 | 90 | 89 | 90 |
Equipment expense | 34 | 34 | 34 | 33 | 32 |
Card and processing expense | 20 | 30 | 31 | 29 | 29 |
Leasing business expense | 33 | 35 | 37 | 35 | 33 |
Marketing expense | 20 | 23 | 30 | 23 | 20 |
Other noninterest expense | 237 | 215 | 237 | 225 | 208 |
Total noninterest expense | 1,153 | 1,215 | 1,236 | 1,161 | 1,121 |
Income Before Income Taxes | 911 | 883 | 746 | 746 | 244 |
Applicable income tax expense | 202 | 189 | 142 | 165 | 49 |
Net Income | 709 | 694 | 604 | 581 | 195 |
Dividends on preferred stock | 35 | 20 | 35 | 19 | 32 |
Net Income Available to Common Shareholders | $674 | $674 | $569 | $562 | $163 |
Fifth Third Bancorp and Subsidiaries | |||||||
Consolidated Balance Sheets | |||||||
$ in millions, except per share data | As of | % Change | |||||
(unaudited) | June | March | June | ||||
2021 | 2021 | 2020 | Seq | Yr/Yr | |||
Assets | |||||||
Cash and due from banks | $3,285 | $3,122 | $3,221 | 5% | 2% | ||
Other short-term investments | 32,409 | 34,187 | 28,243 | (5%) | 15% | ||
Available-for-sale debt and other securities(a)
| 38,012 | 37,595 | 38,599 | 1% | (2%) | ||
Held-to-maturity securities(b)
| 10 | 10 | 16 | - | (38%) | ||
Trading debt securities | 711 | 728 | 526 | (2%) | 35% | ||
Equity securities | 341 | 315 | 273 | 8% | 25% | ||
Loans and leases held for sale | 5,730 | 5,477 | 912 | 5% | 528% | ||
Portfolio loans and leases: | |||||||
Commercial and industrial loans | 47,564 | 49,094 | 55,661 | (3%) | (15%) | ||
Commercial mortgage loans | 10,347 | 10,481 | 11,233 | (1%) | (8%) | ||
Commercial construction loans | 5,871 | 6,198 | 5,479 | (5%) | 7% | ||
Commercial leases | 3,238 | 3,255 | 3,061 | (1%) | 6% | ||
Total commercial loans and leases | 67,020 | 69,028 | 75,434 | (3%) | (11%) | ||
Residential mortgage loans | 16,131 | 15,776 | 16,457 | 2% | (2%) | ||
Home equity | 4,545 | 4,815 | 5,681 | (6%) | (20%) | ||
Indirect secured consumer loans | 15,192 | 14,336 | 12,395 | 6% | 23% | ||
Credit card | 1,793 | 1,810 | 2,211 | (1%) | (19%) | ||
Other consumer loans | 3,052 | 3,090 | 2,875 | (1%) | 6% | ||
Total consumer loans | 40,713 | 39,827 | 39,619 | 2% | 3% | ||
Portfolio loans and leases | 107,733 | 108,855 | 115,053 | (1%) | (6%) | ||
Allowance for loan and lease losses | (2,033) | (2,208) | (2,696) | (8%) | (25%) | ||
Portfolio loans and leases, net | 105,700 | 106,647 | 112,357 | (1%) | (6%) | ||
Bank premises and equipment | 2,073 | 2,072 | 2,053 | - | 1% | ||
Operating lease equipment | 715 | 718 | 809 | - | (12%) | ||
Goodwill | 4,259 | 4,259 | 4,261 | - | - | ||
Intangible assets | 117 | 127 | 171 | (8%) | (32%) | ||
Servicing rights | 818 | 784 | 676 | 4% | 21% | ||
Other assets | 11,210 | 10,858 | 10,789 | 3% | 4% | ||
Total Assets | $205,390 | $206,899 | $202,906 | (1%) | 1% | ||
Liabilities | |||||||
Deposits: | |||||||
Demand | $62,760 | $61,363 | $49,359 | 2% | 27% | ||
Interest checking | 44,872 | 45,582 | 51,586 | (2%) | (13%) | ||
Savings | 20,667 | 20,162 | 16,896 | 3% | 22% | ||
Money market | 30,564 | 30,630 | 30,881 | - | (1%) | ||
Foreign office | 152 | 113 | 191 | 35% | (20%) | ||
Other time | 2,408 | 2,759 | 3,913 | (13%) | (38%) | ||
Certificates $100,000 and over | 860 | 1,784 | 4,120 | (52%) | (79%) | ||
Total deposits | 162,283 | 162,393 | 156,946 | - | 3% | ||
Federal funds purchased | 338 | 302 | 262 | 12% | 29% | ||
Other short-term borrowings | 1,130 | 1,106 | 1,285 | 2% | (12%) | ||
Accrued taxes, interest and expenses | 2,045 | 1,879 | 2,582 | 9% | (21%) | ||
Other liabilities | 4,304 | 3,881 | 3,169 | 11% | 36% | ||
Long-term debt | 12,364 | 14,743 | 16,327 | (16%) | (24%) | ||
Total Liabilities | 182,464 | 184,304 | 180,571 | (1%) | 1% | ||
Equity | |||||||
Common stock(c)
| 2,051 | 2,051 | 2,051 | - | - | ||
Preferred stock | 2,116 | 2,116 | 1,770 | - | 20% | ||
Capital surplus | 3,602 | 3,592 | 3,603 | - | - | ||
Retained earnings | 19,343 | 18,863 | 17,643 | 3% | 10% | ||
Accumulated other comprehensive income | 1,974 | 1,792 | 2,951 | 10% | (33%) | ||
Treasury stock | (6,160) | (5,819) | (5,683) | 6% | 8% | ||
Total Equity | 22,926 | 22,595 | 22,335 | 1% | 3% | ||
Total Liabilities and Equity | $205,390 | $206,899 | $202,906 | (1%) | 1% | ||
(a) Amortized cost | $36,081 | $35,963 | $35,780 | - | 1% | ||
(b) Market values | 10 | 10 | 16 | - | (38%) | ||
(c) Common shares, stated value $2.22 per share (in thousands): | |||||||
Authorized | 2,000,000 | 2,000,000 | 2,000,000 | - | - | ||
Outstanding, excluding treasury | 703,740 | 711,596 | 712,202 | (1 | %) | (1 | %) |
Treasury | 220,153 | 212,297 | 211,690 | 4 | % | 4 | % |
Fifth Third Bancorp and Subsidiaries | |||||
Consolidated Balance Sheets | |||||
$ in millions, except per share data | As of | ||||
(unaudited) | June | March | December | September | June |
2021 | 2021 | 2020 | 2020 | 2020 | |
Assets | |||||
Cash and due from banks | $3,285 | $3,122 | $3,147 | $2,996 | $3,221 |
Other short-term investments | 32,409 | 34,187 | 33,399 | 31,285 | 28,243 |
Available-for-sale debt and other securities(a)
| 38,012 | 37,595 | 37,513 | 37,425 | 38,599 |
Held-to-maturity securities(b)
| 10 | 10 | 11 | 15 | 16 |
Trading debt securities | 711 | 728 | 560 | 704 | 526 |
Equity securities | 341 | 315 | 313 | 277 | 273 |
Loans and leases held for sale | 5,730 | 5,477 | 4,741 | 2,323 | 912 |
Portfolio loans and leases: | |||||
Commercial and industrial loans | 47,564 | 49,094 | 49,665 | 51,695 | 55,661 |
Commercial mortgage loans | 10,347 | 10,481 | 10,602 | 10,878 | 11,233 |
Commercial construction loans | 5,871 | 6,198 | 5,815 | 5,656 | 5,479 |
Commercial leases | 3,238 | 3,255 | 2,915 | 3,021 | 3,061 |
Total commercial loans and leases | 67,020 | 69,028 | 68,997 | 71,250 | 75,434 |
Residential mortgage loans | 16,131 | 15,776 | 15,928 | 16,158 | 16,457 |
Home equity | 4,545 | 4,815 | 5,183 | 5,455 | 5,681 |
Indirect secured consumer loans | 15,192 | 14,336 | 13,653 | 12,925 | 12,395 |
Credit card | 1,793 | 1,810 | 2,007 | 2,087 | 2,211 |
Other consumer loans | 3,052 | 3,090 | 3,014 | 2,856 | 2,875 |
Total consumer loans | 40,713 | 39,827 | 39,785 | 39,481 | 39,619 |
Portfolio loans and leases | 107,733 | 108,855 | 108,782 | 110,731 | 115,053 |
Allowance for loan and lease losses | (2,033) | (2,208) | (2,453) | (2,574) | (2,696) |
Portfolio loans and leases, net | 105,700 | 106,647 | 106,329 | 108,157 | 112,357 |
Bank premises and equipment | 2,073 | 2,072 | 2,088 | 2,090 | 2,053 |
Operating lease equipment | 715 | 718 | 777 | 818 | 809 |
Goodwill | 4,259 | 4,259 | 4,258 | 4,261 | 4,261 |
Intangible assets | 117 | 127 | 139 | 157 | 171 |
Servicing rights | 818 | 784 | 656 | 660 | 676 |
Other assets | 11,210 | 10,858 | 10,749 | 10,828 | 10,789 |
Total Assets | $205,390 | $206,899 | $204,680 | $201,996 | $202,906 |
Liabilities | |||||
Deposits: | |||||
Demand | $62,760 | $61,363 | $57,711 | $51,896 | $49,359 |
Interest checking | 44,872 | 45,582 | 47,270 | 49,566 | 51,586 |
Savings | 20,667 | 20,162 | 18,258 | 17,221 | 16,896 |
Money market | 30,564 | 30,630 | 30,650 | 31,192 | 30,881 |
Foreign office | 152 | 113 | 143 | 160 | 191 |
Other time | 2,408 | 2,759 | 3,023 | 3,337 | 3,913 |
Certificates $100,000 and over | 860 | 1,784 | 2,026 | 3,311 | 4,120 |
Total deposits | 162,283 | 162,393 | 159,081 | 156,683 | 156,946 |
Federal funds purchased | 338 | 302 | 300 | 251 | 262 |
Other short-term borrowings | 1,130 | 1,106 | 1,192 | 1,196 | 1,285 |
Accrued taxes, interest and expenses | 2,045 | 1,879 | 2,614 | 2,500 | 2,582 |
Other liabilities | 4,304 | 3,881 | 3,409 | 3,292 | 3,169 |
Long-term debt | 12,364 | 14,743 | 14,973 | 15,123 | 16,327 |
Total Liabilities | 182,464 | 184,304 | 181,569 | 179,045 | 180,571 |
Equity | |||||
Common stock(c)
| 2,051 | 2,051 | 2,051 | 2,051 | 2,051 |
Preferred stock | 2,116 | 2,116 | 2,116 | 2,116 | 1,770 |
Capital surplus | 3,602 | 3,592 | 3,635 | 3,624 | 3,603 |
Retained earnings | 19,343 | 18,863 | 18,384 | 18,010 | 17,643 |
Accumulated other comprehensive income | 1,974 | 1,792 | 2,601 | 2,831 | 2,951 |
Treasury stock | (6,160) | (5,819) | (5,676) | (5,681) | (5,683) |
Total Equity | 22,926 | 22,595 | 23,111 | 22,951 | 22,335 |
Total Liabilities and Equity | $205,390 | $206,899 | $204,680 | $201,996 | $202,906 |
(a) Amortized cost | $36,081 | $35,963 | $34,982 | $34,693 | $35,780 |
(b) Market values | 10 | 10 | 11 | 15 | 16 |
(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 | 703,740 | 711,596 | 712,760 | 712,328 | 712,202 |
Treasury | 220,153 | 212,297 | 211,132 | 211,565 | 211,690 |
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 | |
2021 | 2020 | 2021 | 2020 | |
Total Equity, Beginning | $22,595 | $21,873 | $23,111 | $21,203 |
Net income | 709 | 195 | 1,403 | 243 |
Other comprehensive (loss) income, net of tax: | ||||
Change in unrealized (losses) gains: | ||||
Available-for-sale debt securities | 230 | 456 | (459) | 1,338 |
Qualifying cash flow hedges | (49) | 17 | (170) | 419 |
Change in accumulated other comprehensive income related to employee benefit plans | 1 | 1 | 2 | 2 |
Comprehensive income | 891 | 669 | 776 | 2,002 |
Cash dividends declared: | ||||
Common stock | (192) | (195) | (387) | (390) |
Preferred stock | (35) | (32) | (55) | (50) |
Impact of stock transactions under stock compensation plans, net | 15 | 20 | 9 | 43 |
Shares acquired for treasury | (347) | - | (527) | - |
Other | (1) | - | (1) | (1) |
Impact of cumulative effect of change in accounting principles | - | - | - | (472) |
Total Equity, Ending | $22,926 | $22,335 | $22,926 | $22,335 |
Fifth Third Bancorp and Subsidiaries | |||||||||
Average Balance Sheet and Yield/Rate Analysis | For the Three Months Ended | ||||||||
$ in millions | June | March | June | ||||||
(unaudited) | 2021 | 2021 | 2020 | ||||||
Average | Average | Average | Average | Average | Average | ||||
Balance | Yield/Rate | Balance | Yield/Rate | Balance | Yield/Rate | ||||
Assets | |||||||||
Interest-earning assets: | |||||||||
Loans and leases: | |||||||||
Commercial and industrial loans(a)
| $48,817 | 3.62 | % | $49,715 | 3.60 | % | $59,106 | 3.47 | % |
Commercial mortgage loans(a)
| 10,467 | 3.11 | % | 10,534 | 3.06 | % | 11,224 | 3.44 | % |
Commercial construction loans(a)
| 6,043 | 3.09 | % | 6,039 | 3.20 | % | 5,548 | 3.53 | % |
Commercial leases(a)
| 3,174 | 2.94 | % | 3,130 | 3.17 | % | 3,056 | 3.47 | % |
Total commercial loans and leases | 68,501 | 3.47 | % | 69,418 | 3.46 | % | 78,934 | 3.47 | % |
Residential mortgage loans | 21,740 | 3.29 | % | 20,444 | 3.36 | % | 17,405 | 3.53 | % |
Home equity | 4,674 | 3.60 | % | 5,009 | 3.58 | % | 5,820 | 3.60 | % |
Indirect secured consumer loans | 14,702 | 3.41 | % | 13,955 | 3.58 | % | 12,124 | 4.04 | % |
Credit card | 1,770 | 12.13 | % | 1,879 | 12.36 | % | 2,248 | 11.28 | % |
Other consumer loans | 3,056 | 5.96 | % | 2,996 | 6.12 | % | 2,887 | 6.50 | % |
Total consumer loans | 45,942 | 3.88 | % | 44,283 | 4.02 | % | 40,484 | 4.34 | % |
Total loans and leases | 114,443 | 3.63 | % | 113,701 | 3.68 | % | 119,418 | 3.76 | % |
Securities: | |||||||||
Taxable securities | 36,097 | 3.06 | % | 35,764 | 2.97 | % | 36,817 | 3.08 | % |
Tax exempt securities(a)
| 820 | 2.47 | % | 533 | 2.26 | % | 156 | 2.96 | % |
Other short-term investments | 33,558 | 0.11 | % | 32,717 | 0.10 | % | 19,833 | 0.11 | % |
Total interest-earning assets | 184,918 | 2.88 | % | 182,715 | 2.90 | % | 176,224 | 3.21 | % |
Cash and due from banks | 3,033 | 2,991 | 3,121 | ||||||
Other assets | 20,608 | 20,580 | 21,394 | ||||||
Allowance for loan and lease losses | (2,206) | (2,450) | (2,352) | ||||||
Total Assets | $206,353 | $203,836 | $198,387 | ||||||
Liabilities | |||||||||
Interest-bearing liabilities: | |||||||||
Interest checking deposits | $45,307 | 0.06 | % | $45,568 | 0.07 | % | $49,760 | 0.24 | % |
Savings deposits | 20,494 | 0.02 | % | 18,951 | 0.03 | % | 16,354 | 0.06 | % |
Money market deposits | 30,844 | 0.05 | % | 30,601 | 0.05 | % | 30,022 | 0.32 | % |
Foreign office deposits | 140 | 0.03 | % | 128 | 0.05 | % | 182 | 0.09 | % |
Other time deposits | 2,696 | 0.27 | % | 3,045 | 0.44 | % | 4,421 | 1.21 | % |
Total interest-bearing core deposits | 99,481 | 0.05 | % | 98,293 | 0.06 | % | 100,739 | 0.27 | % |
Certificates $100,000 and over | 1,144 | 0.80 | % | 2,009 | 1.08 | % | 4,067 | 1.40 | % |
Other deposits | - | - | - | - | 31 | 0.04 | % | ||
Federal funds purchased | 346 | 0.10 | % | 324 | 0.13 | % | 309 | 0.16 | % |
Other short-term borrowings | 1,097 | 0.12 | % | 1,209 | 0.24 | % | 2,377 | 0.32 | % |
Long-term debt | 13,883 | 2.85 | % | 14,849 | 2.83 | % | 16,955 | 2.80 | % |
Total interest-bearing liabilities | 115,951 | 0.40 | % | 116,684 | 0.44 | % | 124,478 | 0.66 | % |
Demand deposits | 61,994 | 58,586 | 45,761 | ||||||
Other liabilities | 5,481 | 5,614 | 5,727 | ||||||
Total Liabilities | 183,426 | 180,884 | 175,966 | ||||||
Total Equity | 22,927 | 22,952 | 22,421 | ||||||
Total Liabilities and Equity | $206,353 | $203,836 | $198,387 | ||||||
Ratios: | |||||||||
Net interest margin (FTE)(b)
| 2.63 | % | 2.62 | % | 2.75 | % | |||
Net interest rate spread (FTE)(b)
| 2.48 | % | 2.46 | % | 2.55 | % | |||
Interest-bearing liabilities to interest-earning assets | 62.70 | % | 63.86 | % | 70.64 | % | |||
(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) | 2021 | 2020 | ||||
Average | Average | Average | Average | |||
Balance | Yield/Rate | Balance | Yield/Rate | |||
Assets | ||||||
Interest-earning assets: | ||||||
Loans and leases: | ||||||
Commercial and industrial loans(a)
| $49,263 | 3.61 | % | $55,399 | 3.83 | % |
Commercial mortgage loans(a)
| 10,500 | 3.09 | % | 11,122 | 3.94 | % |
Commercial construction loans(a)
| 6,041 | 3.15 | % | 5,340 | 4.15 | % |
Commercial leases(a)
| 3,152 | 3.05 | % | 3,128 | 3.47 | % |
Total commercial loans and leases | 68,956 | 3.46 | % | 74,989 | 3.86 | % |
Residential mortgage loans | 21,095 | 3.32 | % | 17,715 | 3.58 | % |
Home equity | 4,841 | 3.59 | % | 5,913 | 4.16 | % |
Indirect secured consumer loans | 14,331 | 3.49 | % | 11,967 | 4.07 | % |
Credit card | 1,824 | 12.25 | % | 2,373 | 11.72 | % |
Other consumer loans | 3,027 | 6.04 | % | 2,842 | 7.09 | % |
Total consumer loans | 45,118 | 3.95 | % | 40,810 | 4.53 | % |
Total loans and leases | 114,074 | 3.66 | % | 115,799 | 4.09 | % |
Securities: | ||||||
Taxable securities | 35,932 | 3.01 | % | 36,395 | 3.12 | % |
Tax exempt securities(a)
| 677 | 2.39 | % | 159 | 3.00 | % |
Other short-term investments | 33,140 | 0.10 | % | 11,366 | 0.22 | % |
Total interest-earning assets | 183,823 | 2.89 | % | 163,719 | 3.61 | % |
Cash and due from banks | 3,012 | 3,000 | ||||
Other assets | 20,595 | 20,509 | ||||
Allowance for loan and lease losses | (2,328) | (2,099) | ||||
Total Assets | $205,102 | $185,129 | ||||
Liabilities | ||||||
Interest-bearing liabilities: | ||||||
Interest checking deposits | $45,437 | 0.06 | % | $45,029 | 0.46 | % |
Savings deposits | 19,727 | 0.02 | % | 15,534 | 0.09 | % |
Money market deposits | 30,723 | 0.05 | % | 28,565 | 0.51 | % |
Foreign office deposits | 134 | 0.04 | % | 196 | 0.35 | % |
Other time deposits | 2,870 | 0.36 | % | 4,751 | 1.40 | % |
Total interest-bearing core deposits | 98,891 | 0.06 | % | 94,075 | 0.46 | % |
Certificates $100,000 and over | 1,574 | 0.98 | % | 3,711 | 1.71 | % |
Other deposits | - | - | 144 | 0.76 | % | |
Federal funds purchased | 335 | 0.11 | % | 481 | 0.82 | % |
Other short-term borrowings | 1,153 | 0.18 | % | 2,063 | 0.74 | % |
Long-term debt | 14,362 | 2.84 | % | 16,387 | 2.95 | % |
Total interest-bearing liabilities | 116,315 | 0.42 | % | 116,861 | 0.86 | % |
Demand deposits | 60,300 | 40,763 | ||||
Other liabilities | 5,548 | 5,438 | ||||
Total Liabilities | 182,163 | 163,062 | ||||
Total Equity | 22,939 | 22,067 | ||||
Total Liabilities and Equity | $205,102 | $185,129 | ||||
Ratios: | ||||||
Net interest margin (FTE)(b)
| 2.62 | % | 2.99 | % | ||
Net interest rate spread (FTE)(b)
| 2.47 | % | 2.75 | % | ||
Interest-bearing liabilities to interest-earning assets | 63.28 | % | 71.38 | % | ||
(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 |
2021 | 2021 | 2020 | 2020 | 2020 | |
Average Portfolio Loans and Leases | |||||
Commercial loans and leases: | |||||
Commercial and industrial loans | $48,773 | $49,629 | $50,385 | $54,004 | $59,040 |
Commercial mortgage loans | 10,459 | 10,532 | 10,727 | 11,069 | 11,222 |
Commercial construction loans | 6,043 | 6,039 | 5,820 | 5,534 | 5,548 |
Commercial leases | 3,174 | 3,114 | 2,932 | 2,966 | 3,056 |
Total commercial loans and leases | 68,449 | 69,314 | 69,864 | 73,573 | 78,866 |
Consumer loans: | |||||
Residential mortgage loans | 15,883 | 15,803 | 16,016 | 16,618 | 16,561 |
Home equity | 4,674 | 5,009 | 5,315 | 5,581 | 5,820 |
Indirect secured consumer loans | 14,702 | 13,955 | 13,272 | 12,599 | 12,124 |
Credit card | 1,770 | 1,879 | 2,042 | 2,134 | 2,248 |
Other consumer loans | 3,056 | 2,996 | 2,851 | 2,857 | 2,887 |
Total consumer loans | 40,085 | 39,642 | 39,496 | 39,789 | 39,640 |
Total average portfolio loans and leases | $108,534 | $108,956 | $109,360 | $113,362 | $118,506 |
Average Loans and Leases Held for Sale | |||||
Average commercial loans and leases held for sale | $52 | $104 | $56 | $55 | $68 |
Average consumer loans held for sale | 5,857 | 4,641 | 2,048 | 1,196 | 844 |
Average loans and leases held for sale | $5,909 | $4,745 | $2,104 | $1,251 | $912 |
End of Period Portfolio Loans and Leases | |||||
Commercial loans and leases: | |||||
Commercial and industrial loans | $47,564 | $49,094 | $49,665 | $51,695 | $55,661 |
Commercial mortgage loans | 10,347 | 10,481 | 10,602 | 10,878 | 11,233 |
Commercial construction loans | 5,871 | 6,198 | 5,815 | 5,656 | 5,479 |
Commercial leases | 3,238 | 3,255 | 2,915 | 3,021 | 3,061 |
Total commercial loans and leases | 67,020 | 69,028 | 68,997 | 71,250 | 75,434 |
Consumer loans: | |||||
Residential mortgage loans | 16,131 | 15,776 | 15,928 | 16,158 | 16,457 |
Home equity | 4,545 | 4,815 | 5,183 | 5,455 | 5,681 |
Indirect secured consumer loans | 15,192 | 14,336 | 13,653 | 12,925 | 12,395 |
Credit card | 1,793 | 1,810 | 2,007 | 2,087 | 2,211 |
Other consumer loans | 3,052 | 3,090 | 3,014 | 2,856 | 2,875 |
Total consumer loans | 40,713 | 39,827 | 39,785 | 39,481 | 39,619 |
Total portfolio loans and leases | $107,733 | $108,855 | $108,782 | $110,731 | $115,053 |
End of Period Loans and Leases Held for Sale
| |||||
Commercial loans and leases held for sale | $46 | $80 | $276 | $59 | $72 |
Consumer loans held for sale | 5,684 | 5,397 | 4,465 | 2,264 | 840 |
Loans and leases held for sale | $5,730 | $5,477 | $4,741 | $2,323 | $912 |
Operating lease equipment | $715 | $718 | $777 | $818 | $809 |
Loans and Leases Serviced for Others(a)
| |||||
Commercial and industrial loans | $919 | $1,011 | $979 | $903 | $967 |
Commercial mortgage loans | 623 | 639 | 653 | 585 | 592 |
Commercial construction loans | 528 | 592 | 601 | 623 | 536 |
Commercial leases | 536 | 547 | 569 | 584 | 582 |
Residential mortgage loans | 71,496 | 65,922 | 68,800 | 73,521 | 78,804 |
Other consumer loans | 50 | 50 | 50 | 50 | 50 |
Total loans and leases serviced for others | 74,152 | 68,761 | 71,652 | 76,266 | 81,531 |
Total loans and leases serviced | $188,330 | $183,811 | $185,952 | $190,138 | $198,305 |
(a) Fifth Third sells certain loans and leases and obtains servicing responsibilities. |
Fifth Third Bancorp and Subsidiaries | ||||||||||
Regulatory Capital | ||||||||||
$ in millions | As of | |||||||||
(unaudited) | June | March | December | September | June | |||||
2021(a)
| 2021 | 2020 | 2020 | 2020 | ||||||
Regulatory Capital(b)
| ||||||||||
CET1 capital | $15,050 | $14,931 | $14,682 | $14,307 | $13,935 | |||||
Additional tier I capital | 2,116 | 2,117 | 2,115 | 2,115 | 1,769 | |||||
Tier I capital | 17,166 | 17,048 | 16,797 | 16,422 | 15,704 | |||||
Tier II capital | 4,018 | 4,083 | 4,615 | 4,645 | 4,703 | |||||
Total regulatory capital | $21,184 | $21,131 | $21,412 | $21,067 | $20,407 | |||||
Risk-weighted assets
| $145,079 | $142,799 | $141,974 | $141,083 | $143,322 | |||||
Ratios | ||||||||||
Average total Bancorp shareholders' equity as a percent of average assets | 11.11 | % | 11.26 | % | 11.34 | % | 11.33 | % | 11.30 | % |
Regulatory Capital Ratios(b)
| ||||||||||
Fifth Third Bancorp | ||||||||||
CET1 capital
| 10.37 | % | 10.46 | % | 10.34 | % | 10.14 | % | 9.72 | % |
Tier I risk-based capital
| 11.83 | % | 11.94 | % | 11.83 | % | 11.64 | % | 10.96 | % |
Total risk-based capital
| 14.60 | % | 14.80 | % | 15.08 | % | 14.93 | % | 14.24 | % |
Tier I leverage | 8.55 | % | 8.61 | % | 8.49 | % | 8.37 | % | 8.16 | % |
Fifth Third Bank | ||||||||||
Tier I risk-based capital
| 11.67 | % | 12.70 | % | 12.28 | % | 12.25 | % | 11.76 | % |
Total risk-based capital
| 13.27 | % | 14.41 | % | 14.17 | % | 14.14 | % | 13.65 | % |
Tier I leverage | 8.46 | % | 9.19 | % | 8.85 | % | 8.85 | % | 8.80 | % |
Fifth Third Bancorp and Subsidiaries | ||||||||||
Summary of Credit Loss Experience | ||||||||||
$ in millions | For the Three Months Ended | |||||||||
(unaudited) | June | March | December | September | June | |||||
2021 | 2021 | 2020 | 2020 | 2020 | ||||||
Average portfolio loans and leases: | ||||||||||
Commercial and industrial loans | $48,773 | $49,629 | $50,385 | $54,004 | $59,040 | |||||
Commercial mortgage loans | 10,459 | 10,532 | 10,727 | 11,069 | 11,222 | |||||
Commercial construction loans | 6,043 | 6,039 | 5,820 | 5,534 | 5,548 | |||||
Commercial leases | 3,174 | 3,114 | 2,932 | 2,966 | 3,056 | |||||
Total commercial loans and leases | 68,449 | 69,314 | 69,864 | 73,573 | 78,866 | |||||
Residential mortgage loans | 15,883 | 15,803 | 16,016 | 16,618 | 16,561 | |||||
Home equity | 4,674 | 5,009 | 5,315 | 5,581 | 5,820 | |||||
Indirect secured consumer loans | 14,702 | 13,955 | 13,272 | 12,599 | 12,124 | |||||
Credit card | 1,770 | 1,879 | 2,042 | 2,134 | 2,248 | |||||
Other consumer loans | 3,056 | 2,996 | 2,851 | 2,857 | 2,887 | |||||
Total consumer loans | 40,085 | 39,642 | 39,496 | 39,789 | 39,640 | |||||
Total average portfolio loans and leases | $108,534 | $108,956 | $109,360 | $113,362 | $118,506 | |||||
Losses charged-off: | ||||||||||
Commercial and industrial loans | ($36) | ($32) | ($44) | ($45) | ($68) | |||||
Commercial mortgage loans | (8) | (3) | (31) | (11) | (2) | |||||
Commercial leases | (1) | - | - | (10) | (11) | |||||
Total commercial loans and leases | (45) | (35) | (75) | (66) | (81) | |||||
Residential mortgage loans | (1) | (1) | (4) | (1) | (2) | |||||
Home equity | (2) | (3) | (3) | (4) | (3) | |||||
Indirect secured consumer loans | (11) | (18) | (19) | (11) | (15) | |||||
Credit card | (26) | (31) | (31) | (34) | (40) | |||||
Other consumer loans | (18) | (21) | (22) | (19) | (22) | |||||
Total consumer loans | (58) | (74) | (79) | (69) | (82) | |||||
Total losses charged-off | ($103) | ($109) | ($154) | ($135) | ($163) | |||||
Recoveries of losses previously charged-off: | ||||||||||
Commercial and industrial loans | $23 | $5 | $3 | $3 | $3 | |||||
Commercial mortgage loans | 2 | 1 | 1 | - | - | |||||
Commercial leases | 3 | 1 | 1 | 2 | - | |||||
Total commercial loans and leases | 28 | 7 | 5 | 5 | 3 | |||||
Residential mortgage loans | 1 | 1 | 2 | 2 | 1 | |||||
Home equity | 3 | 3 | 3 | 3 | 2 | |||||
Indirect secured consumer loans | 11 | 9 | 10 | 8 | 8 | |||||
Credit card | 6 | 6 | 6 | 5 | 6 | |||||
Other consumer loans | 10 | 12 | 10 | 11 | 13 | |||||
Total consumer loans | 31 | 31 | 31 | 29 | 30 | |||||
Total recoveries of losses previously charged-off | $59 | $38 | $36 | $34 | $33 | |||||
Net losses charged-off: | ||||||||||
Commercial and industrial loans | ($13) | ($27) | ($41) | ($42) | ($65) | |||||
Commercial mortgage loans | (6) | (2) | (30) | (11) | (2) | |||||
Commercial leases | 2 | 1 | 1 | (8) | (11) | |||||
Total commercial loans and leases | (17) | (28) | (70) | (61) | (78) | |||||
Residential mortgage loans | - | - | (2) | 1 | (1) | |||||
Home equity | 1 | - | - | (1) | (1) | |||||
Indirect secured consumer loans | - | (9) | (9) | (3) | (7) | |||||
Credit card | (20) | (25) | (25) | (29) | (34) | |||||
Other consumer loans | (8) | (9) | (12) | (8) | (9) | |||||
Total consumer loans | (27) | (43) | (48) | (40) | (52) | |||||
Total net losses charged-off | ($44) | ($71) | ($118) | ($101) | ($130) | |||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized): | ||||||||||
Commercial and industrial loans | 0.11 | % | 0.22 | % | 0.33 | % | 0.31 | % | 0.45 | % |
Commercial mortgage loans | 0.22 | % | 0.09 | % | 1.13 | % | 0.39 | % | 0.07 | % |
Commercial leases | (0.21 | %) | (0.09 | %) | (0.15 | %) | 1.09 | % | 1.47 | % |
Total commercial loans and leases | 0.10 | % | 0.17 | % | 0.40 | % | 0.33 | % | 0.40 | % |
Residential mortgage loans | (0.01 | %) | (0.01 | %) | 0.04 | % | (0.02 | %) | 0.02 | % |
Home equity | (0.09 | %) | 0.01 | % | - | 0.07 | % | 0.07 | % | |
Indirect secured consumer loans | 0.01 | % | 0.25 | % | 0.28 | % | 0.11 | % | 0.24 | % |
Credit card | 4.52 | % | 5.50 | % | 4.95 | % | 5.44 | % | 6.17 | % |
Other consumer loans | 0.91 | % | 1.17 | % | 1.50 | % | 1.05 | % | 1.17 | % |
Total consumer loans | 0.26 | % | 0.43 | % | 0.47 | % | 0.40 | % | 0.52 | % |
Total net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.16 | % | 0.27 | % | 0.43 | % | 0.35 | % | 0.44 | % |
Fifth Third Bancorp and Subsidiaries | ||||||||||
Asset Quality | ||||||||||
$ in millions | For the Three Months Ended | |||||||||
(unaudited) | June | March | December | September | June | |||||
2021 | 2021 | 2020 | 2020 | 2020 | ||||||
Allowance for Credit Losses | ||||||||||
Allowance for loan and lease losses, beginning | $2,208 | $2,453 | $2,574 | $2,696 | $2,348 | |||||
Total net losses charged-off | (44) | (71) | (118) | (101) | (130) | |||||
(Benefit from) provision for loan and lease losses | (131) | (174) | (3) | (21) | 478 | |||||
Allowance for loan and lease losses, ending | $2,033 | $2,208 | $2,453 | $2,574 | $2,696 | |||||
Reserve for unfunded commitments, beginning | $173 | $172 | $182 | $176 | $169 | |||||
Provision for (benefit from) the reserve for unfunded commitments | 16 | 1 | (10) | 6 | 7 | |||||
Reserve for unfunded commitments, ending | $189 | $173 | $172 | $182 | $176 | |||||
Components of allowance for credit losses: | ||||||||||
Allowance for loan and lease losses | $2,033 | $2,208 | $2,453 | $2,574 | $2,696 | |||||
Reserve for unfunded commitments | 189 | 173 | 172 | 182 | 176 | |||||
Total allowance for credit losses | $2,222 | $2,381 | $2,625 | $2,756 | $2,872 | |||||
As of | ||||||||||
June | March | December | September | June | ||||||
2021 | 2021 | 2020 | 2020 | 2020 | ||||||
Nonperforming Assets and Delinquent Loans | ||||||||||
Nonaccrual portfolio loans and leases: | ||||||||||
Commercial and industrial loans | $193 | $197 | $230 | $266 | $94 | |||||
Commercial mortgage loans | 43 | 50 | 82 | 99 | 89 | |||||
Commercial construction loans | - | 1 | - | - | - | |||||
Commercial leases | 9 | 6 | 7 | 16 | 22 | |||||
Residential mortgage loans | 17 | 22 | 25 | 30 | 14 | |||||
Home equity | 53 | 55 | 52 | 50 | 52 | |||||
Indirect secured consumer loans | 6 | 6 | 9 | 8 | 5 | |||||
Other consumer loans | 1 | 2 | 2 | 3 | 2 | |||||
Total nonaccrual portfolio loans and leases (excludes restructured loans) | 322 | 339 | 407 | 472 | 278 | |||||
Nonaccrual restructured portfolio commercial loans and leases | 164 | 255 | 319 | 307 | 282 | |||||
Nonaccrual restructured portfolio consumer loans and leases(c)
| 135 | 147 | 108 | 112 | 140 | |||||
Total nonaccrual portfolio loans and leases | 621 | 741 | 834 | 891 | 700 | |||||
Repossessed property | 5 | 7 | 9 | 7 | 4 | |||||
OREO | 31 | 35 | 21 | 33 | 43 | |||||
Total nonperforming portfolio loans and leases and OREO | 657 | 783 | 864 | 931 | 747 | |||||
Nonaccrual loans held for sale | 13 | 2 | 5 | 10 | 1 | |||||
Nonaccrual restructured loans held for sale | 27 | 20 | 1 | 1 | 1 | |||||
Total nonperforming assets | $697 | $805 | $870 | $942 | $749 | |||||
Restructured portfolio consumer loans and leases (accrual) | $699 | $763 | $796 | $818 | $963 | |||||
Restructured portfolio commercial loans and leases (accrual) | $80 | $81 | $92 | $123 | $119 | |||||
Loans and leases 90 days past due (accrual): | ||||||||||
Commercial and industrial loans | $2 | $8 | $39 | $4 | $10 | |||||
Commercial mortgage loans | 4 | 7 | 8 | 26 | 23 | |||||
Commercial construction loans | - | 1 | - | - | - | |||||
Commercial leases | - | - | 1 | 2 | - | |||||
Total commercial loans and leases | 6 | 16 | 48 | 32 | 33 | |||||
Residential mortgage loans(c)
| 57 | 73 | 70 | 67 | 54 | |||||
Home equity | 1 | 1 | 2 | 2 | - | |||||
Indirect secured consumer loans | 4 | 8 | 10 | 10 | 12 | |||||
Credit card | 14 | 25 | 31 | 27 | 36 | |||||
Other consumer loans | 1 | 1 | 2 | 1 | 1 | |||||
Total consumer loans | 77 | 108 | 115 | 107 | 103 | |||||
Total loans and leases 90 days past due (accrual)(b)
| $83 | $124 | $163 | $139 | $136 | |||||
Ratios | ||||||||||
Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 0.16 | % | 0.27 | % | 0.43 | % | 0.35 | % | 0.44 | % |
Allowance for credit losses: | ||||||||||
As a percent of portfolio loans and leases | 2.06 | % | 2.19 | % | 2.41 | % | 2.49 | % | 2.50 | % |
As a percent of nonperforming portfolio loans and leases(a)
| 358 | % | 321 | % | 315 | % | 309 | % | 410 | % |
As a percent of nonperforming portfolio assets(a)
| 338 | % | 304 | % | 304 | % | 296 | % | 385 | % |
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases and OREO(a)
| 0.58 | % | 0.68 | % | 0.77 | % | 0.80 | % | 0.61 | % |
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO(a)
| 0.61 | % | 0.72 | % | 0.79 | % | 0.84 | % | 0.65 | % |
Nonperforming assets as a percent of total loans and leases, OREO, and repossessed property | 0.61 | % | 0.70 | % | 0.77 | % | 0.83 | % | 0.65 | % |
(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 | |||||
2021 | 2021 | 2020 | 2020 | 2020 | ||||||
Net interest income | $1,208 | $1,176 | $1,182 | $1,170 | $1,200 | |||||
Add: Taxable equivalent adjustment | 3 | 3 | 3 | 3 | 3 | |||||
Net interest income (FTE) (a) | 1,211 | 1,179 | 1,185 | 1,173 | 1,203 | |||||
Net interest income (annualized) (b) | 4,845 | 4,769 | 4,702 | 4,655 | 4,826 | |||||
Net interest income (FTE) (annualized) (c) | 4,857 | 4,782 | 4,714 | 4,667 | 4,838 | |||||
Interest income | 1,323 | 1,302 | 1,315 | 1,329 | 1,403 | |||||
Add: Taxable equivalent adjustment | 3 | 3 | 3 | 3 | 3 | |||||
Interest income (FTE) | 1,326 | 1,305 | 1,318 | 1,332 | 1,406 | |||||
Interest income (FTE) (annualized) (d) | 5,319 | 5,293 | 5,243 | 5,299 | 5,655 | |||||
Interest expense (annualized) (e) | 461 | 511 | 529 | 633 | 816 | |||||
Average interest-earning assets (f) | 184,918 | 182,715 | 182,418 | 180,704 | 176,224 | |||||
Average interest-bearing liabilities (g) | 115,951 | 116,684 | 118,677 | 123,626 | 124,478 | |||||
Net interest margin (b) / (f) | 2.62 | % | 2.61 | % | 2.58 | % | 2.58 | % | 2.74 | % |
Net interest margin (FTE) (c) / (f) | 2.63 | % | 2.62 | % | 2.58 | % | 2.58 | % | 2.75 | % |
Net interest rate spread (FTE) (d) / (f) - (e) / (g) | 2.48 | % | 2.46 | % | 2.42 | % | 2.42 | % | 2.55 | % |
Income before income taxes | $911 | $883 | $746 | $746 | $244 | |||||
Add: Taxable equivalent adjustment | 3 | 3 | 3 | 3 | 3 | |||||
Income before income taxes (FTE) | $914 | $886 | $749 | $749 | $247 | |||||
Net income available to common shareholders | $674 | $674 | $569 | $562 | $163 | |||||
Add: Intangible amortization, net of tax | 8 | 9 | 9 | 9 | 9 | |||||
Tangible net income available to common shareholders (h) | 682 | 683 | 578 | 571 | 172 | |||||
Tangible net income available to common shareholders (annualized) (i) | 2,735 | 2,770 | 2,299 | 2,272 | 692 | |||||
Average Bancorp shareholders' equity | 22,927 | 22,952 | 23,126 | 22,952 | 22,420 | |||||
Less: | Average preferred stock | (2,116) | (2,116) | (2,116) | (2,007) | (1,770) | ||||
Average goodwill | (4,259) | (4,259) | (4,261) | (4,261) | (4,261) | |||||
Average intangible assets | (122) | (133) | (151) | (164) | (178) | |||||
Average tangible common equity, including AOCI (j) | 16,430 | 16,444 | 16,598 | 16,520 | 16,211 | |||||
Less: | Average AOCI | (1,968) | (2,231) | (2,623) | (2,919) | (2,702) | ||||
Average tangible common equity, excluding AOCI (k) | 14,462 | 14,213 | 13,975 | 13,601 | 13,509 | |||||
Total Bancorp shareholders' equity | 22,926 | 22,595 | 23,111 | 22,951 | 22,335 | |||||
Less: | Preferred stock | (2,116) | (2,116) | (2,116) | (2,116) | (1,770) | ||||
Goodwill | (4,259) | (4,259) | (4,258) | (4,261) | (4,261) | |||||
Intangible assets | (117) | (127) | (139) | (157) | (171) | |||||
Tangible common equity, including AOCI (l) | 16,434 | 16,093 | 16,598 | 16,417 | 16,133 | |||||
Less: | AOCI | (1,974) | (1,792) | (2,601) | (2,831) | (2,951) | ||||
Tangible common equity, excluding AOCI (m) | 14,460 | 14,301 | 13,997 | 13,586 | 13,182 | |||||
Add: | Preferred stock | 2,116 | 2,116 | 2,116 | 2,116 | 1,770 | ||||
Tangible equity (n) | 16,576 | 16,417 | 16,113 | 15,702 | 14,952 | |||||
Total assets | 205,390 | 206,899 | 204,680 | 201,996 | 202,906 | |||||
Less: | Goodwill | (4,259) | (4,259) | (4,258) | (4,261) | (4,261) | ||||
Intangible assets | (117) | (127) | (139) | (157) | (171) | |||||
Tangible assets, including AOCI (o) | 201,014 | 202,513 | 200,283 | 197,578 | 198,474 | |||||
Less: | AOCI, before tax | (2,499) | (2,268) | (3,292) | (3,584) | (3,735) | ||||
Tangible assets, excluding AOCI (p) | $198,515 | $200,245 | $196,991 | $193,994 | $194,739 | |||||
Common shares outstanding (q) | 704 | 712 | 713 | 712 | 712 | |||||
Tangible equity (n) / (p) | 8.35 | % | 8.20 | % | 8.18 | % | 8.09 | % | 7.68 | % |
Tangible common equity (excluding AOCI) (m) / (p) | 7.28 | % | 7.14 | % | 7.11 | % | 6.99 | % | 6.77 | % |
Tangible common equity (including AOCI) (l) / (o) | 8.18 | % | 7.95 | % | 8.29 | % | 8.31 | % | 8.13 | % |
Tangible book value per share (l) / (q) | $23.34 | $22.60 | $23.28 | $23.06 | $22.66 |
Fifth Third Bancorp and Subsidiaries | ||||||
Non-GAAP Reconciliation | ||||||
$ in millions | For the Three Months Ended | |||||
(unaudited) | June | March | June | |||
2021 | 2021 | 2020 | ||||
Net income (r) | $709 | $694 | $195 | |||
Net income (annualized) (s) | 2,844 | 2,815 | 784 | |||
Adjustments (pre-tax items) | ||||||
Valuation of Visa total return swap | 37 | 13 | 29 | |||
Branch and non-branch real estate charges | - | - | 12 | |||
Merger-related expenses | - | - | 9 | |||
FHLB debt extinguishment charge | - | - | 6 | |||
Adjustments, after-tax (t)(a)
| 28 | 10 | 43 | |||
Noninterest income (u) | 741 | 749 | 650 | |||
Valuation of Visa total return swap | 37 | 13 | 29 | |||
Branch and non-branch real estate charges | - | - | 12 | |||
Adjusted noninterest income (v) | 778 | 762 | 691 | |||
Noninterest expense (w) | 1,153 | 1,215 | 1,121 | |||
Merger-related expenses | - | - | (9) | |||
FHLB debt extinguishment charge | - | - | (6) | |||
Adjusted noninterest expense (x) | 1,153 | 1,215 | 1,106 | |||
Adjusted net income (r) + (t) | 737 | 704 | 238 | |||
Adjusted net income (annualized) (y) | 2,956 | 2,855 | 957 | |||
Adjusted tangible net income available to common shareholders (h) + (t) | 710 | 693 | 215 | |||
Adjusted tangible net income available to common shareholders (annualized) (z) | 2,848 | 2,811 | 865 | |||
Average assets (aa) | $206,353 | $203,836 | $198,387 | |||
Return on average tangible common equity (i) / (j) | 16.6 | % | 16.8 | % | 4.3 | % |
Return on average tangible common equity excluding AOCI (i) / (k) | 18.9 | % | 19.5 | % | 5.1 | % |
Adjusted return on average tangible common equity, including AOCI (z) / (j) | 17.3 | % | 17.1 | % | 5.3 | % |
Adjusted return on average tangible common equity, excluding AOCI (z) / (k) | 19.7 | % | 19.8 | % | 6.4 | % |
Return on average assets (s) / (aa) | 1.38 | % | 1.38 | % | 0.40 | % |
Adjusted return on average assets (y) / (aa) | 1.43 | % | 1.40 | % | 0.48 | % |
Efficiency ratio (FTE) (w) / [(a) + (u)] | 59.1 | % | 63.0 | % | 60.5 | % |
Adjusted efficiency ratio (x) / [(a) + (v)] | 58.0 | % | 62.6 | % | 58.4 | % |
Total revenue (FTE) (a) + (u) | $1,952 | $1,928 | $1,853 | |||
Pre-provision net revenue (PPNR) (a) + (u) - (w) | $799 | $713 | $732 | |||
Adjusted pre-provision net revenue (PPNR) (a) + (v) - (x) | $836 | $726 | $788 | |||
(a) Assumes a 23% tax rate |
Fifth Third Bancorp and Subsidiaries | ||||||
Segment Presentation | ||||||
$ in millions | ||||||
(unaudited) | ||||||
For the three months ended June 30, 2021
| Commercial Banking |
Branch
Banking(b)
|
Consumer Lending(c)
|
Wealth
and Asset Management
|
Other/
Eliminations
| Total |
Net interest income (FTE)(a)
| $378 | $301 | $142 | $21 | $369 | $1,211 |
Benefit from (provision for) credit losses | 151 | (25) | - | - | (11) | 115 |
Net interest income after benefit from (provision for) credit losses | 529 | 276 | 142 | 21 | 358 | 1,326 |
Noninterest income | 355 | 224 | 63 | 143 | (44) | 741 |
Noninterest expense | (399) | (450) | (163) | (131) | (10) | (1,153) |
Income before income taxes | 485 | 50 | 42 | 33 | 304 | 914 |
Applicable income tax expense(a)
| (92) | (10) | (9) | (7) | (87) | (205) |
Net income | $393 | $40 | $33 | $26 | $217 | $709 |
For the three months ended March 31, 2021
| Commercial Banking |
Branch
Banking(b)
|
Consumer Lending(c)
|
Wealth
and Asset Management
|
Other/
Eliminations
| Total |
Net interest income (FTE)(a)
| $367 | $295 | $128 | $21 | $368 | $1,179 |
Benefit from (provision for) credit losses | 76 | (41) | (8) | 1 | 145 | 173 |
Net interest income after benefit from (provision for) credit losses | 443 | 254 | 120 | 22 | 513 | 1,352 |
Noninterest income | 361 | 204 | 82 | 138 | (36) | 749 |
Noninterest expense | (420) | (489) | (161) | (135) | (10) | (1,215) |
Income (loss) before income taxes | 384 | (31) | 41 | 25 | 467 | 886 |
Applicable income tax (expense) benefit(a)
| (72) | 7 | (9) | (5) | (113) | (192) |
Net income (loss) | $312 | $(24) | $32 | $20 | $354 | $694 |
For the three months ended December 31, 2020
| Commercial Banking |
Branch
Banking(b)
|
Consumer Lending(c)
|
Wealth
and Asset Management
|
Other/
Eliminations
| Total |
Net interest income (FTE)(a)
| $397 | $293 | $102 | $23 | $370 | $1,185 |
Benefit from (provision for) credit losses | (212) | (49) | (9) | (2) | 285 | 13 |
Net interest income after benefit from (provision for) credit losses | 185 | 244 | 93 | 21 | 655 | 1,198 |
Noninterest income | 404 | 196 | 22 | 136 | 29 | 787 |
Noninterest expense | (427) | (471) | (135) | (131) | (72) | (1,236) |
Income (loss) before income taxes | 162 | (31) | (20) | 26 | 612 | 749 |
Applicable income tax (expense) benefit(a)
| (24) | 6 | 4 | (5) | (126) | (145) |
Net income (loss) | $138 | $(25) | $(16) | $21 | $486 | $604 |
For the three months ended September 30, 2020
| Commercial Banking |
Branch
Banking(b)
|
Consumer Lending(c)
|
Wealth
and Asset Management
|
Other/
Eliminations
| Total |
Net interest income (FTE)(a)
| $435 | $355 | $98 | $28 | $257 | $1,173 |
Benefit from (provision for) credit losses | (337) | (68) | (2) | - | 422 | 15 |
Net interest income after benefit from (provision for) credit losses | 98 | 287 | 96 | 28 | 679 | 1,188 |
Noninterest income | 318 | 192 | 73 | 132 | 7 | 722 |
Noninterest expense | (411) | (460) | (137) | (133) | (20) | (1,161) |
Income before income taxes | 5 | 19 | 32 | 27 | 666 | 749 |
Applicable income tax (expense) benefit(a)
| 7 | (4) | (7) | (6) | (158) | (168) |
Net income | $12 | $15 | $25 | $21 | $508 | $581 |
For the three months ended June 30, 2020
| Commercial Banking |
Branch
Banking(b)
|
Consumer Lending(c)
|
Wealth
and Asset Management
|
Other/
Eliminations
| Total |
Net interest income (FTE)(a)
| $573 | $513 | $92 | $51 | $(26) | $1,203 |
(Provision for) benefit from credit losses | (457) | (52) | (10) | 1 | 33 | (485) |
Net interest income after (provision for) benefit from credit losses | 116 | 461 | 82 | 52 | 7 | 718 |
Noninterest income | 294 | 167 | 98 | 121 | (30) | 650 |
Noninterest expense | (405) | (454) | (120) | (122) | (20) | (1,121) |
Income (loss) before income taxes | 5 | 174 | 60 | 51 | (43) | 247 |
Applicable income tax (expense) benefit(a)
| 7 | (36) | (12) | (11) | - | (52) |
Net income (loss) | $12 | $138 | $48 | $40 | $(43) | $195 |
(a) Includes taxable equivalent adjustments of $3 million, $3 million, $3 million, $3 million and $3 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.
| ||||||
(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. |
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Fifth Third Bancorp published this content on 22 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 July 2021 10:37:08 UTC.