Company: FITBI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0000035527-25-000212
Chunk: 149

Company: FIFTH THIRD BANCORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 149
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 endedSeptember 30,($ in millions)2025202420252024Interest rate contracts:Interest rate contracts related to MSR portfolioMortgage banking net revenue3 45 35 (17)Forward contracts related to residential mortgage loans measured at fair valueMortgage banking net revenue(6)(7)(18)(1)Foreign exchange contracts:Foreign exchange contracts for risk management purposesOther noninterest income3 (1)(2)5 Equity contracts:Swap associated with sale of Visa, Inc. Class B SharesOther noninterest income(18)(47)(37)(87)

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

Free-Standing Derivative Instruments – Customer AccommodationThe majority of the free-standing derivative instruments the Bancorp enters into are for the benefit of its commercial customers. The Bancorp may economically hedge significant exposures related to these derivative contracts entered into for the benefit of customers by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms.The Bancorp enters into risk participation agreements, under which the Bancorp assumes credit exposure relating to certain underlying interest rate derivative contracts. The Bancorp typically only enters into these risk participation agreements in instances in which the Bancorp has participated in the loan that the underlying interest rate derivative contract was designed to hedge. The Bancorp will make payments under these agreements if a customer defaults on its obligation to perform under the terms of the underlying interest rate derivative contract. The total notional amount of the risk participation agreements was $3.0 billion and $3.2 billion at September 30, 2025 and December 31, 2024, respectively, and the fair value was a liability of $4 million and $5 million at September 30, 2025 and December 31, 2024, respectively, which is included in other liabilities in the Condensed Consolidated Balance Sheets.The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table:Condensed ConsolidatedStatements of Income CaptionFor the three months endedSeptember 30,For the nine months endedSeptember 30,($ in millions)2025202420252024Interest rate contracts:Interest rate contracts for customers (contract revenue)Capital market fees$9 9 24 20 Interest rate contracts for customers (credit portion of fair value adjustment)Other noninterest expense(1)(