Company: FITBI
Filing Date: 2025-03-04
Form Type: DEF 14A
Source: 0001193125-25-045653
Chunk: 40

Company: FIFTH THIRD BANCORP
Filing Date: 2025-03-04
Form: DEF 14A
Chunk 40
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| Interchange Litigation Matters                            |     |                     | $  | 0.18 |   |     |     |  0.06 | %  |                  |     | -1.1% |
| FDIC Special Assessment                                   |     |                     | $  | 0.03 |   |     |     |  0.01 | %  |                  |     | -0.3% |
| Allowance for Credit Losses                               |     |                     | ($ | 0.11 | ) |     |     | (0.04 | %) |                  |     | 0.0%  |
| Fifth Third Foundation Contribution                       |     |                     | $  | 0.02 |   |     |     |  0.01 | %  |                  |     | -0.2% |
| Other: Severance Expense, Securities (Gain) / Loss, other |     |                     | $  | 0.01 |   |     |     |  0.00 | %  |                  |     | -0.1% |

The three most significant adjustments are the Visa and Mastercard interchange matters, FDIC special assessment, and the ACL adjustment, which, taken together, have the effect of both materially increasing and decreasing adjusted results. The FDIC special assessment as well as the interchange litigation matter are unique items not contemplated when setting targets, nor was it a result of the Company’s core operations; therefore, the Committee approved adjusting these items. Finally, the adjustment for the ACL accounts for only the variance to target for allowance build or release, which is a consistent treatment since the implementation of the Current Expected Credit Losses (“CECL”) accounting standard. No adjustment was made for realized credit losses. The methodology nullifies the potentially volatile and forward-looking nature of the ACL measurement while allowing for the impact of actual losses incurred to impact the results versus target. The Committee believes consistent application of these, and other adjustments, are important to maintain the integrity of the VCP. In addition to the performance adjustments above, the VCP Adjusted Actual results include any increase or decrease to variable compensation implied by the funding calculation, further impacting the VCP Adjusted Actual, as reported below. Unadjusted reported financial results, as well as adjusted results for each of the Bancorp funding metrics, are shown in the table below:

| Bancorp Funding Metrics   |     | 2024 Reported Metrics |     |         |     |