Company: FITBI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000035527-25-000137
Chunk: 6

Company: FIFTH THIRD BANCORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 7
Chunk 6
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-favored status of income from certain loans and leases and securities held by the Bancorp that are not taxable for federal income tax purposes. The Bancorp believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison between taxable and non-taxable amounts.

The following table reconciles the non-GAAP financial measures of net interest income on an FTE basis, interest income on an FTE basis, net interest margin, net interest rate spread and the efficiency ratio to U.S. GAAP:

TABLE 2:  Non-GAAP Financial Measures - Financial Measures and Ratios on an FTE basisFor the three months endedMarch 31,($ in millions)20252024Net interest income (U.S. GAAP)$1,437 1,384 Add: FTE adjustment5 6 Net interest income on an FTE basis (1)$1,442 1,390 Net interest income on an FTE basis (annualized) (2)5,848 5,591 Interest income (U.S. GAAP)$2,432 2,608 Add: FTE adjustment5 6 Interest income on an FTE basis$2,437 2,614 Interest income on an FTE basis (annualized) (3)9,883 10,513 Interest expense (annualized) (4)$4,035 4,923 Noninterest income (5)694 710 Noninterest expense (6)1,304 1,342 Average interest-earning assets (7)192,808 195,349 Average interest-bearing liabilities (8)144,285 146,533 Ratios:Net interest margin on an FTE basis (2) / (7)3.03 %2.86 Net interest rate spread on an FTE basis ((3) / (7)) - ((4) / (8))2.33 2.02 Efficiency ratio on an FTE basis (6) / ((1) + (5))61.0 63.9 

The Bancorp believes return on average tangible common equity is an important measure for comparative purposes with other financial institutions, but is not defined under U.S. GAAP, and therefore is considered a non-GAAP financial measure. This measure is useful for evaluating the performance of a business as it calculates the return available to common shareholders without the impact of intangible assets and their related amortization.