Company: FITBI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0000035527-25-000212
Chunk: 207

Company: FIFTH THIRD BANCORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 1
Chunk 207
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 and increases in interest income on commercial loans, partially offset by decreases in FTP charges on loans and leases allocated to the segments and decreases in interest income on other short-term investments. The decrease in FTP charges allocated to the segments was driven by decreases in market interest rates, primarily affecting the variable-rate asset portfolios. The decrease in FTP credits allocated to the segments was driven by lower FTP credit rates paid on deposits as a result of lower market interest rates and reduced liquidity premium assumptions. Under the Bancorp’s internal reporting methodology, the Bancorp insulates the segments from interest rate risk associated with fixed-rate lending by transferring this risk to General Corporate and Other through the FTP methodology. As a result, the amount of FTP credits on deposits earned by the segments generally increases or decreases at a faster pace than the amount of allocated FTP charges on loans and leases.

The benefit from credit losses was $122 million and $100 million for the three and nine months ended September 30, 2025, respectively, compared to a provision for credit losses of $6 million and a benefit from credit losses of $165 million for the same periods in the prior year. The benefit from credit losses for the three months ended September 30, 2025 was primarily driven by the benefit from the reduction of the ACL captured in General Corporate and Other. The decrease in the benefit from credit losses for the nine months ended September 30, 2025 was primarily driven by an increase in the provision for the reserve for unfunded commitments as well as a decrease in allocations to the segments.

Noninterest income increased $31 million and $51 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year primarily driven by decreases in the loss on the swap associated with the sale of Visa, Inc. Class B Shares and increases in net securities gains.

Noninterest expense decreased $8 million and $46 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year. The decrease for the three months ended September 30, 2025 was primarily driven by a decrease in compensation and benefits expense, partially offset by increases in net occupancy expense and technology and communications expense. The decrease for the nine months ended September 30, 2025 was primarily driven by the expense recognized in 2024 associated with an FDIC special assessment and an increase in corporate overhead allocations from General Corporate and Other to the segments, partially offset by increases in technology and communications expense