Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 82

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 7
Chunk 82
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 Third’s asset and liability management activities:

TABLE 56:  Summary of Qualifying Hedging InstrumentsWeighted-AverageAs of June 30, 2025 ($ in millions)NotionalAmountFair ValueRemainingTerm (years)Fixed RateInterest rate swaps related to C&I loans – cash flow – receive-fixed$11,000 (2)5.8 3.05  %Interest rate swaps related to commercial mortgage and commercial construction loans – cash flow – receive-fixed4,000 (28)6.6 3.50 Interest rate swaps related to long-term debt – fair value – receive-fixed4,955 (6)4.2 5.04 Total interest rate swaps$19,955 (36)

TABLE 57:  Summary of Qualifying Hedging InstrumentsWeighted-AverageAs of December 31, 2024 ($ in millions)Notional AmountFair ValueRemaining Term (years)Fixed RateInterest rate swaps related to C&I loans – cash flow – receive-fixed$11,000 (2)5.7 3.05  %Interest rate swaps related to C&I loans – cash flow – receive-fixed – forward starting(a)1,000 1 7.0 3.20 Interest rate swaps related to commercial mortgage and commercial construction loans – cash flow – receive-fixed – forward starting(a)4,000 3 7.13.50 Interest rate swaps related to long-term debt – fair value – receive-fixed4,955 (11)4.75.04 Total interest rate swaps$20,955 (9)

(a)Forward starting swaps became effective in January and February 2025.

Additionally, as part of its overall risk management strategy relative to its residential mortgage banking activities, the Bancorp enters into forward contracts accounted for as free-standing derivatives to economically hedge IRLCs that are also considered free-standing derivatives. The Bancorp economically hedges its exposure to residential mortgage loans held for sale through the use of forward contracts and mortgage options as well. Refer to the Residential Mortgage Servicing Rights and Price Risk section for the discussion of the use of derivatives to economically hedge this exposure.

The Bancorp also enters into derivative contracts with major financial institutions to economically hedge market risks assumed in interest rate derivative contracts with commercial customers. Generally, these contracts have similar terms in order to protect the Bancorp from market volatility. Credit risk arises from the possible inability of the counterparties to meet the terms of their contracts