Company: FITBI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0000035527-25-000212
Chunk: 315

Company: FIFTH THIRD BANCORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 1
Chunk 315
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 (the “Visa Litigation Exposure”) exceeds the value of the Class B Shares owned by the swap counterparty (the “Class B Value”). In the event the Bancorp concludes that it is probable that the Visa Litigation Exposure exceeds the Class B Value, the Bancorp would record a litigation reserve liability and a corresponding amount of other noninterest expense for the amount of the excess. Any such litigation reserve liability would be separate and distinct from the fair value derivative liability associated with the total return swap.As of the date of the Bancorp’s sale of the Visa Class B Shares and through September 30, 2025, the Bancorp has concluded that it is not probable that the Visa Litigation Exposure will exceed the Class B Value. Based on this determination, upon the sale of Class B Shares, the Bancorp reversed its net Visa litigation reserve liability and recognized a free-standing derivative liability associated with the total return swap. The fair value of the swap liability was $150 million at September 30, 2025 and $170 million at December 31, 2024, respectively. Refer to Note 9 and Note 18 for further information.

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

After the Bancorp’s sale of the Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows:Period ($ in millions)VisaFunding AmountBancorp CashPayment AmountQ2 2010$500 20 Q4 2010800 35 Q2 2011400 19 Q1 20121,565 75 Q3 2012150 6 Q3 2014450 18 Q2 2018600 26 Q3 2019300 12 Q4 2021250 11 Q2 2022600 25 Q4 2022350 15 Q2 2023500 21 Q3 2023150 6 Q3 20241,500 65 Q1 2025375 15 Q3 2025500 (a)(a)The Bancorp made a cash payment of $21 million