Company: FITBI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0000035527-25-000212
Chunk: 22

Company: FIFTH THIRD BANCORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 7
Chunk 22
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,For the nine months endedSeptember 30,($ in millions)2025202420252024Origination fees and gains on loan sales$22 18 56 50 Net mortgage servicing revenue:Gross mortgage servicing fees73 77 219 233 Net valuation adjustments on MSRs and free-standing derivatives  purchased to economically hedge MSRs(37)(45)(104)(129)Net mortgage servicing revenue36 32 115 104 Total mortgage banking net revenue$58 50 171 154 

Origination fees and gains on loan sales increased $4 million and $6 million for the three and nine months ended September 30, 2025, respectively, compared to the three and nine months ended September 30, 2024 primarily driven by higher volumes of saleable rate lock mortgage loan originations. Residential mortgage loan originations were $1.9 billion for both the three months ended September 30, 2025 and 2024. Residential mortgage loan originations increased to $5.3 billion from $4.6 billion for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase in the average loan size originated and an increase in correspondent channel volume.

The following table presents the components of net valuation adjustments on the MSR portfolio and the impact of the Bancorp’s hedging strategy:

TABLE 9:  Components of Net Valuation Adjustments on MSRsFor the three months endedSeptember 30,For the nine months endedSeptember 30,($ in millions)2025202420252024Changes in fair value and settlement of free-standing derivatives purchased   to economically hedge the MSR portfolio$3 45 35 (17)Changes in fair value:Due to changes in inputs or assumptions(a)— (49)(24)1 Other changes in fair value(b)(40)(41)(115)(113)Net valuation adjustments on MSRs and free-standing derivatives purchased to economically hedge MSRs$(37)(45)(104)(129)

(a)Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates.

(b)Primarily reflects changes due to realized cash flows and the passage of time.

Net mortgage servicing revenue increased $4 million and $11 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year as decreases in negative valuation adjustments of $8 million