Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 139

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 8
Chunk 139
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 Statements of Income.The following table presents changes in the servicing rights related to residential mortgage loans for the six months ended June 30:($ in millions)20252024Balance, beginning of period$1,704 1,737 Servicing rights originated25 21 Servicing rights sold— (5)Changes in fair value:Due to changes in inputs or assumptions(a)(25)51 Other changes in fair value(b)(75)(73)Balance, end of period$1,629 1,731 (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.The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the value of the MSR portfolio which may include the use of investment securities or derivative instruments. Refer to Note 9 for additional information on derivative instruments used for this purpose.The key economic assumptions used in measuring the servicing rights related to residential mortgage loans that continued to be held by the Bancorp at the date of sale, securitization or purchase resulting from transactions completed during the three months ended June 30, 2025 and 2024 were as follows:June 30, 2025June 30, 2024Weighted-Average Life(in years)PrepaymentSpeed(annual)OAS(bps)Weighted-Average Life(in years)PrepaymentSpeed(annual)OAS(bps)Fixed-rate6.012.1 %4967.99.4  %472At June 30, 2025 and December 31, 2024, the Bancorp serviced $91.2 billion and $94.2 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. The weighted-average coupon of the MSR portfolio was 3.82% and 3.79% at June 30, 2025 and December 31, 2024, respectively.

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

At June 30, 2025, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed