Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 287

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 287
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 use of investment securities or derivative instruments. Refer to Note 9 for additional information on derivative instruments used for this purpose.The key economic assumptions used in measuring the servicing rights related to residential mortgage loans that continued to be held by the Bancorp at the date of sale, securitization or purchase resulting from transactions completed during the three months ended June 30, 2025 and 2024 were as follows:June 30, 2025June 30, 2024Weighted-Average Life(in years)PrepaymentSpeed(annual)OAS(bps)Weighted-Average Life(in years)PrepaymentSpeed(annual)OAS(bps)Fixed-rate6.012.1 %4967.99.4  %472At June 30, 2025 and December 31, 2024, the Bancorp serviced $91.2 billion and $94.2 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. The weighted-average coupon of the MSR portfolio was 3.82% and 3.79% at June 30, 2025 and December 31, 2024, respectively.

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Table of ContentsFifth Third Bancorp and SubsidiariesNotes to Condensed Consolidated Financial Statements (unaudited)

At June 30, 2025, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in OAS for servicing rights related to residential mortgage loans are as follows:($ in millions)(a)PrepaymentSpeed AssumptionOASAssumptionFair ValueWeighted-Average Life(in years)Impact of Adverse Changeon Fair ValueOAS(bps)Impact of Adverse Change on Fair ValueRate10%20%50%10%20%Fixed-rate$1,626 8.16.5 %$(39)(75)(175)433$(33)(65)Adjustable-rate3 4.817.2 — (1)(1)723— — (a)The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial.These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in