Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 144

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 8
Chunk 144
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 purchase contracts which are utilized to manage market risk on residential mortgage loans held for sale and the related interest rate lock commitments in addition to certain portfolio residential mortgage loans measured at fair value.(c)Derivative assets and liabilities are presented net of variation margin of $257 and $45, respectively.Fair Value HedgesThe Bancorp may enter into interest rate swaps to convert its fixed-rate funding to floating-rate or to hedge the exposure to changes in fair value of a recognized asset attributable to changes in the benchmark interest rate. The following table reflects the changes in fair value of interest rate contracts, designated as fair value hedges and the changes in fair value of the related hedged items attributable to the risk being hedged, as well as the line items in the Condensed Consolidated Statements of Income in which the corresponding gains or losses are recorded:Condensed ConsolidatedStatements ofIncome CaptionFor the three months endedJune 30,For the six months endedJune 30,($ in millions)2025202420252024Long-term debt:Change in fair value of interest rate swaps hedging long-term debtInterest on long-term debt$37 (23)105 (114)Change in fair value of hedged long-term debt attributable to the risk being hedgedInterest on long-term debt(37)23 (105)114 

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

The following amounts were recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of:($ in millions)Condensed ConsolidatedBalance Sheets CaptionJune 30,2025December 31,2024Long-term debt:Carrying amount of the hedged itemsLong-term debt$4,945 4,838 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged itemsLong-term debt2 (103)Available-for-sale debt and other securities:Cumulative amount of fair value hedging adjustments remaining for hedged items for which hedge accounting has been discontinuedAvailable-for-sale debt and other securities(8)(9)Cash Flow HedgesThe Bancorp may enter into interest rate swaps to convert floating-rate assets and liabilities to fixed rates or to hedge certain forecasted transactions for the variability in cash flows attributable to the contractually specified interest rate. As of June 30, 2025, the maximum length of time over which the Bancorp is hedging its exposure to the variability