Company: FITBI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000035527-25-000137
Chunk: 128

Company: FIFTH THIRD BANCORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 128
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 Condensed Consolidated Statements of Income. As of March 31, 2025 and December 31, 2024, respectively, $419 million and $654 million of net deferred losses, net of tax, on cash flow hedges were recorded in AOCI in the Condensed Consolidated Balance Sheets. As of March 31, 2025, $178 million in net unrealized losses, net of tax, recorded in AOCI are expected to be reclassified into earnings during the next 12 months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations or the addition of other hedges subsequent to March 31, 2025.During both the three months ended March 31, 2025 and 2024, there were no gains or losses reclassified from AOCI into earnings associated with the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would no longer occur by the end of the originally specified time period or within the additional period of time as defined by U.S. GAAP.The following table presents the pre-tax net gains (losses) recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges:For the three months endedMarch 31,($ in millions)20252024Amount of pre-tax net gains (losses) recognized in OCI$253 (413)Amount of pre-tax net losses reclassified from OCI into net income(56)(89)Free-Standing Derivative Instruments – Risk Management and Other Business PurposesThe net (losses) gains recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table:Condensed Consolidated Statements of Income CaptionFor the three months endedMarch 31,($ in millions)20252024Interest rate contracts:Interest rate contracts related to MSR portfolioMortgage banking net revenue$19 (46)Forward contracts related to residential mortgage loans measured at fair valueMortgage banking net revenue(9)5 Foreign exchange contracts:Foreign exchange contracts for risk management purposesOther noninterest income— 5 Equity contracts:Swap associated with sale of Visa, Inc. Class B SharesOther noninterest income(18)(17)Free-Standing Derivative Instruments – Customer AccommodationThe majority of the free-standing derivative instruments the Bancorp enters into are for the benefit of