Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 294

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 294
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orp 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 $3.0 billion and $3.2 billion at June 30, 2025 and December 31, 2024, respectively, and the fair value was a liability of $4 million and $5 million at June 30, 2025 and December 31, 2024, respectively, which is included in other liabilities in the Condensed Consolidated Balance Sheets.The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table:Condensed ConsolidatedStatements of Income CaptionFor the three months endedJune 30,For the six months endedJune 30,($ in millions)2025202420252024Interest rate contracts:Interest rate contracts for customers (contract revenue)Capital market fees$7 6 15 11 Interest rate contracts for customers (credit portion of fair value adjustment)Other noninterest expense(1)1 (4)3 Interest rate lock commitmentsMortgage banking net revenue12 11 26 20 Commodity contracts:Commodity contracts for customers (contract revenue)Capital market fees4 4 10 8 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 23 38 40 Foreign exchange contracts for customers (contract revenue)Other noninterest income(23)(12)(33)(8)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 right to reduce its liability to the defaulting party by amounts eligible for setoff, including the collateral received as well as eligible offsetting transactions with that counterparty, irrespective of the currency, place of payment or booking office. The Bancorp’s policy is to present