Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 230

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 230
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 index, to hedge the exposure to changes in fair value of a recognized asset attributable to changes in the benchmark interest rate or to hedge forecasted transactions for the variability in cash flows attributable to the contractually specified interest rate. The volume, maturity and mix of portfolio swaps change frequently as the Bancorp adjusts its broader interest rate risk management objectives and the balance sheet positions to be hedged. For further information, refer to Note 9 of the Notes to Condensed Consolidated Financial Statements.

The following tables present additional information about the interest rate swaps used as qualifying hedging instruments in Fifth Third’s asset and liability management activities:

TABLE 56:  Summary of Qualifying Hedging InstrumentsWeighted-AverageAs of June 30, 2025 ($ in millions)NotionalAmountFair ValueRemainingTerm (years)Fixed RateInterest rate swaps related to C&I loans – cash flow – receive-fixed$11,000 (2)5.8 3.05  %Interest rate swaps related to commercial mortgage and commercial construction loans – cash flow – receive-fixed4,000 (28)6.6 3.50 Interest rate swaps related to long-term debt – fair value – receive-fixed4,955 (6)4.2 5.04 Total interest rate swaps$19,955 (36)

TABLE 57:  Summary of Qualifying Hedging InstrumentsWeighted-AverageAs of December 31, 2024 ($ in millions)Notional AmountFair ValueRemaining Term (years)Fixed RateInterest rate swaps related to C&I loans – cash flow – receive-fixed$11,000 (2)5.7 3.05  %Interest rate swaps related to C&I loans – cash flow – receive-fixed – forward starting(a)1,000 1 7.0 3.20 Interest rate swaps related to commercial mortgage and commercial construction loans – cash flow – receive-fixed – forward starting(a)4,000 3 7.13.50 Interest rate swaps related to long-term debt – fair value – receive-fixed4,955 (11)4.75.04 Total interest rate swaps$20,955 (9)

(a)Forward starting swaps became effective in January and February 2025.

Additionally, as part of its overall risk management strategy relative to its residential mortgage banking activities, the Bancorp enters into forward contracts accounted for as free-standing derivatives to economically hedge IRLCs that are also considered free-standing derivatives.