Company: FITBI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0000035527-25-000212
Chunk: 26

Company: FIFTH THIRD BANCORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 7
Chunk 26
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 the prior year related to remediation items. Leasing business expense decreased $15 million for the nine months ended September 30, 2025 compared to the same period in the prior year primarily driven by a decrease in depreciation expense associated with operating lease equipment.

Applicable Income Taxes

The Bancorp’s income before income taxes, applicable income tax expense and effective tax rate are as follows:

TABLE 12:  Applicable Income TaxesFor the three months endedSeptember 30,For the nine months endedSeptember 30,($ in millions)2025202420252024Income before income taxes$837 728 2,298 2,151 Applicable income tax expense188 155 507 457 Effective tax rate22.6  %21.3 22.1 21.3 

Applicable income tax expense for all periods presented includes the benefits from tax-exempt income, tax-advantaged investments, and tax credits (and other related tax benefits), partially offset by the effect of proportional amortization of qualifying investments and certain nondeductible expenses. The tax credits are primarily associated with the Low-Income Housing Tax Credit program established under Section 42 of the IRC, the New Markets Tax Credit program established under Section 45D of the IRC, the Rehabilitation Investment Tax Credit program established under Section 47 of the IRC and the Research Credit program established under Section 41 of the IRC.  

The effective tax rate increased to 22.6% for the three months ended September 30, 2025 compared to 21.3% for the same period in the prior year primarily related to decreases in tax credits and other tax benefits from CDC investments as well as other tax credits. The effective tax rate increased to 22.1% for the nine months ended September 30, 2025 compared to 21.3% for the same period in the prior year primarily related to an increase in state tax expense.

16

Table of ContentsManagement’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

BALANCE SHEET ANALYSIS

Loans and Leases

The Bancorp classifies its commercial loans and leases based upon primary purpose and consumer loans based upon product or collateral. Table 13 summarizes end of period loans and leases, including loans and leases held for sale, and Table 14 summarizes average total loans and leases, including average loans and leases held for sale.

TABLE 13:  Components of Loans and Leases (including loans and leases held for sale)As