Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 21

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 7
Chunk 21
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 net revenue:

TABLE 8:  Components of Mortgage Banking Net RevenueFor the three months endedJune 30,For the six months endedJune 30,($ in millions)2025202420252024Origination fees and gains on loan sales$19 18 34 33 Net mortgage servicing revenue:Gross mortgage servicing fees73 78 147 155 Net valuation adjustments on MSRs and free-standing derivatives  purchased to economically hedge MSRs(36)(46)(68)(84)Net mortgage servicing revenue37 32 79 71 Total mortgage banking net revenue$56 50 113 104 

Origination fees and gains on loan sales increased $1 million for both the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 primarily driven by higher volumes of residential mortgage loan originations. Residential mortgage loan originations increased to $2.0 billion and $3.4 billion for the three and six months ended June 30, 2025, respectively, from $1.6 billion and $2.7 billion for the three and six months ended June 30, 2024, respectively, primarily due to increases in the average loan size originated and increases in correspondent channel volume.

The following table presents the components of net valuation adjustments on the MSR portfolio and the impact of the Bancorp’s hedging strategy:

TABLE 9:  Components of Net Valuation Adjustments on MSRsFor the three months endedJune 30,For the six months endedJune 30,($ in millions)2025202420252024Changes in fair value and settlement of free-standing derivatives purchased   to economically hedge the MSR portfolio$13 (16)32 (62)Changes in fair value:Due to changes in inputs or assumptions(a)(8)10 (25)51 Other changes in fair value(b)(41)(40)(75)(73)Net valuation adjustments on MSRs and free-standing derivatives purchased to economically hedge MSRs$(36)(46)(68)(84)

(a)Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates.

(b)Primarily reflects changes due to realized cash flows and the passage of time.

Net mortgage servicing revenue increased $5 million and $8 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in the prior year as decreases in gross mortgage