Company: FITBI
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000035527-25-000079
Chunk: 302

Company: FIFTH THIRD BANCORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 302
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31 ($ in millions)Consolidated Statements of Income Caption202420232022Long-term debt:Change in fair value of interest rate swaps hedging long-term debtInterest on long-term debt$(66)29 (460)Change in fair value of hedged long-term debt attributable to the riskbeing hedgedInterest on long-term debt65 (26)460 Available-for-sale debt and other securities:Change in fair value of interest rate swaps hedging available-for-saledebt and other securitiesInterest on securities— — 8 Change in fair value of hedged available-for-sale debt and othersecurities attributable to the risk being hedgedInterest on securities— — (8)The following amounts were recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of December 31:($ in millions)Consolidated Balance Sheets Caption20242023Long-term debt:Carrying amount of the hedged itemsLong-term debt$4,838 5,899 Cumulative amount of fair value hedging adjustments included inthe carrying amount of the hedged itemsLong-term debt(103)(38)Available-for-sale debt and other securities:Cumulative amount of fair value hedging adjustments remainingfor hedged items for which hedge accounting has been discontinuedAvailable-for-sale debt and other securities(9)(11)Cash Flow HedgesThe Bancorp may enter into interest rate swaps to convert floating-rate assets and liabilities to fixed rates or to hedge certain forecasted transactions for the variability in cash flows attributable to the contractually specified interest rate. The assets or liabilities may be grouped in circumstances where they share the same risk exposure that the Bancorp desires to hedge. The Bancorp may also enter into interest rate caps and floors to limit cash flow variability of floating-rate assets and liabilities. As of December 31, 2024, all hedges designated as cash flow hedges were assessed for effectiveness using regression analysis. The entire change in the fair value of the interest rate swap included in the assessment of hedge effectiveness is recorded in AOCI and reclassified from AOCI to current period earnings when the hedged item affects earnings. As of December 31, 2024, the maximum length of time over which the Bancorp is hedging its exposure to the variability in future cash flows is 85 months.Reclassified gains and losses on interest rate contracts related to commercial loans are recorded within interest income in the Consolidated Statements of Income.