Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 313

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 313
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 of Income CaptionFor the three months endedJune 30,For the six months endedJune 30,($ in millions)2025202420252024Net unrealized losses on available-for-sale debt securities:(a)Net losses included in net incomeSecurities gains, net$— (4)— (7)Income before income taxes— (4)— (7)Applicable income tax expense— 1 — 2 Net income— (3)— (5)Net unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities:(a)Net losses included in net incomeInterest on securities(28)(32)(60)(64)Income before income taxes(28)(32)(60)(64)Applicable income tax expense6 7 13 14 Net income(22)(25)(47)(50)Net unrealized losses on cash flow hedge derivatives:(a)Interest rate contracts related to C&I, commercial mortgage and commercial construction loansInterest and fees on loans and leases(50)(90)(105)(179)Income before income taxes(50)(90)(105)(179)Applicable income tax expense12 21 25 41 Net income(38)(69)(80)(138)Total reclassifications for the periodNet income$(60)(97)(127)(193)(a)Amounts in parentheses indicate reductions to net income.

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

18.  Fair Value Measurements

The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. For more information regarding the fair value hierarchy, refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended