Company: FITBI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000035527-25-000137
Chunk: 129

Company: FIFTH THIRD BANCORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 129
---
 its commercial customers. The Bancorp may economically hedge significant exposures related to these derivative contracts entered into for the benefit of customers by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms.

90

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

The Bancorp enters into risk participation agreements, under which the Bancorp assumes credit exposure relating to certain underlying interest rate derivative contracts. The Bancorp typically only enters into these risk participation agreements in instances in which the Bancorp has participated in the loan that the underlying interest rate derivative contract was designed to hedge. The Bancorp will make payments under these agreements if a customer defaults on its obligation to perform under the terms of the underlying interest rate derivative contract. The total notional amount of the risk participation agreements was $3.1 billion and $3.2 billion at March 31, 2025 and December 31, 2024, respectively, and the fair value was a liability of $5 million at both March 31, 2025 and December 31, 2024, which is included in other liabilities in the Condensed Consolidated Balance Sheets.The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table:Condensed ConsolidatedStatements of Income CaptionFor the three months endedMarch 31,($ in millions)20252024Interest rate contracts:Interest rate contracts for customers (contract revenue)Capital market fees$8 5 Interest rate contracts for customers (credit portion of fair value adjustment)Other noninterest expense(3)3 Interest rate lock commitmentsMortgage banking net revenue15 9 Commodity contracts:Commodity contracts for customers (contract revenue)Capital market fees6 4 Commodity contracts for customers (credit portion of fair value adjustment)Other noninterest expense— 1 Foreign exchange contracts:Foreign exchange contracts for customers (contract revenue)Capital market fees19 17 Foreign exchange contracts for customers (contract revenue)Other noninterest income(10)4 Offsetting Derivative Financial InstrumentsThe Bancorp’s derivative transactions are generally governed by ISDA Master Agreements and similar arrangements, which include provisions governing the setoff of assets and liabilities between the parties. When the Bancorp has more than one outstanding derivative transaction with a single counterparty, the setoff provisions contained within these agreements generally allow the non-defaulting party the