Strong returns supported by continued business momentum and improved credit trends
Reported results included a net negative $0.04 impact from certain items on page 2
CINCINNATI–(BUSINESS WIRE)–Fifth Third Bancorp (NASDAQ: FITB):
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Key Financial Data |
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Key Highlights |
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$ in millions for all balance sheet and income statement items |
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4Q25 |
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3Q25 |
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4Q24 |
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Stability:
Profitability:
Growth:
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Income Statement Data |
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Net income available to common shareholders |
$699 |
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$608 |
|
$582 |
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Net interest income (U.S. GAAP) |
1,529 |
|
1,520 |
|
1,437 |
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Net interest income (FTE)(a) |
1,533 |
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1,525 |
|
1,443 |
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Noninterest income |
811 |
|
781 |
|
732 |
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Noninterest expense |
1,309 |
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1,267 |
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1,226 |
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Per Share Data |
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Earnings per share, basic |
$1.05 |
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$0.91 |
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$0.86 |
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Earnings per share, diluted |
1.04 |
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0.91 |
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0.85 |
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Book value per share |
30.18 |
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29.26 |
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26.17 |
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Tangible book value per share(a) |
22.60 |
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21.66 |
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18.69 |
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Balance Sheet & Credit Quality |
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Average portfolio loans and leases |
$123,430 |
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$123,326 |
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$117,860 |
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Average deposits |
168,384 |
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164,754 |
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167,237 |
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Accumulated other comprehensive loss |
(3,110) |
|
(3,276) |
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(4,636) |
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Net charge-off ratio(b) |
0.40 |
% |
1.09 |
% |
0.46 |
% |
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Nonperforming asset ratio(c) |
0.65 |
|
0.65 |
|
0.71 |
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Financial Ratios |
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Return on average assets |
1.36 |
% |
1.21 |
% |
1.17 |
% |
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Return on average common equity |
14.0 |
|
12.6 |
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13.0 |
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Return on average tangible common equity(a) |
19.0 |
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17.3 |
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18.4 |
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CET1 capital(d)(e) |
10.77 |
|
10.57 |
|
10.57 |
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Net interest margin(a) |
3.13 |
|
3.13 |
|
2.97 |
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Efficiency(a) |
55.8 |
|
54.9 |
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56.4 |
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Other than the Quarterly Financial Review tables beginning on page 14, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Regulation S-K that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis. |
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From Tim Spence, Fifth Third Chairman, CEO and President: |
Fifth Third delivered strong operating results in the fourth quarter and for the full year. In 2025, we produced record NII, generated profitable relationship growth and diligently managed our expenses, generating 230 bps of positive operating leverage. Our strong profitability allowed us to return $1.6 billion of capital to our shareholders while maintaining strong capital ratios and increasing tangible book value per share 21% compared to last year.
Our consistent investment and focus on growth priorities continue to drive strong results. In 2025, we opened 50 branches in our high-growth Southeast markets and grew consumer households by 2.5%. We generated record quarterly revenue in our Wealth & Asset Management business, and assets under management increased 16% year-over-year to $80 billion.
Years of disciplined execution on strategic initiatives have positioned us to deliver sustained profitability as we integrate Comerica. With shareholder and regulatory approvals secured, we expect the transaction to close on February 1, 2026. We remain confident in our ability to achieve the expected financial synergies from the pending acquisition, and the result will be a Fifth Third that is better and not just bigger.
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Income Statement Highlights |
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($ in millions, except per share data) |
For the Three Months Ended |
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% Change |
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December |
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September |
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December |
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2025 |
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2025 |
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2024 |
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Seq |
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Yr/Yr |
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Condensed Statements of Income |
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Net interest income (NII)(a) |
$1,533 |
|
$1,525 |
|
$1,443 |
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1% |
|
6% |
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|
Provision for credit losses |
119 |
|
197 |
|
179 |
|
(40)% |
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(34)% |
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Noninterest income |
811 |
|
781 |
|
732 |
|
4% |
|
11% |
|
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Noninterest expense |
1,309 |
|
1,267 |
|
1,226 |
|
3% |
|
7% |
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Income before income taxes(a) |
$916 |
|
$842 |
|
$770 |
|
9% |
|
19% |
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Taxable equivalent adjustment |
$4 |
|
$5 |
|
$6 |
|
(20)% |
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(33)% |
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Applicable income tax expense |
181 |
|
188 |
|
144 |
|
(4)% |
|
26% |
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Net income |
$731 |
|
$649 |
|
$620 |
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13% |
|
18% |
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Dividends on preferred stock |
32 |
|
41 |
|
38 |
|
(22)% |
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(16)% |
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Net income available to common shareholders |
$699 |
|
$608 |
|
$582 |
|
15% |
|
20% |
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Earnings per share, diluted |
$1.04 |
|
$0.91 |
|
$0.85 |
|
14% |
|
22% |
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Fifth Third Bancorp (NASDAQ®: FITB) today reported fourth quarter 2025 net income available to common shareholders of $699 million, or $1.04 per diluted share, compared to $608 million, or $0.91 per diluted share, in the prior quarter and $582 million, or $0.85 per diluted share, in the year-ago quarter.
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Diluted earnings per share impact of certain item(s) – 4Q25 |
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(after-tax impact; $ in millions, except per share data) |
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Fifth Third Foundation contribution(f) |
$(38) |
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Merger-related expenses(f)1 |
(13) |
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Interchange litigation matters(f)2 |
(8) |
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Benefit related to the resolution of certain tax matters |
7 |
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Litigation settlements (noninterest income)(f) |
9 |
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FDIC special assessment (noninterest expense)(f) |
19 |
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After-tax impact of certain item(s) |
$(24) |
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Diluted earnings per share impact of certain item(s)3 |
$(0.04) |
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Totals may not foot due to rounding; 1A portion of the adjustments related to merger-related expenses are not tax-deductible; 2Interchange litigation matters decreased noninterest income by $8 million and increased noninterest expense by $3 million; 3Diluted earnings per share impact reflects 669.153 million average diluted shares outstanding |
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Full year 2025 net income available to common shareholders was $2.4 billion, or $3.53 per diluted share, compared to full year 2024 net income available to common shareholders of $2.2 billion, or $3.14 per diluted share.
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Net Interest Income |
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(FTE; $ in millions)(a) |
For the Three Months Ended |
|
% Change |
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|||||||||||||||||
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December |
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September |
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December |
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|||||||||||
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2025 |
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2025 |
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2024 |
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Seq |
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Yr/Yr |
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Interest Income |
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Interest income |
$ |
2,472 |
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$ |
2,524 |
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$ |
2,534 |
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(2 |
)% |
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(2 |
)% |
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Interest expense |
|
939 |
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|
999 |
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|
1,091 |
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(6 |
)% |
|
(14 |
)% |
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|
Net interest income (NII) |
$ |
1,533 |
|
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|
$ |
1,525 |
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$ |
1,443 |
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1 |
% |
|
6 |
% |
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Average Yield/Rate Analysis |
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bps Change |
|
||||||||||
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|
Yield on interest-earning assets |
|
5.05 |
% |
|
|
|
5.18 |
% |
|
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|
5.21 |
% |
|
|
(13 |
) |
|
(16 |
) |
|
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|
Rate paid on interest-bearing liabilities |
|
2.60 |
% |
|
|
|
2.77 |
% |
|
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|
3.00 |
% |
|
|
(17 |
) |
|
(40 |
) |
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Ratios |
|
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||||||||
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Net interest rate spread |
|
2.45 |
% |
|
|
|
2.41 |
% |
|
|
|
2.21 |
% |
|
|
4 |
|
|
24 |
|
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|
Net interest margin (NIM) |
|
3.13 |
% |
|
|
|
3.13 |
% |
|
|
|
2.97 |
% |
|
|
— |
|
|
16 |
|
|
Fully taxable-equivalent (FTE) NII of $1.533 billion increased $8 million, or 1%, compared to the prior quarter. This improvement primarily reflects deposit and wholesale funding management actions decreasing the cost of interest-bearing liabilities, partially offset by lower loan yields due to the impact of market rates on floating rate loans. These same factors, coupled with higher average other short-term investments (including interest-bearing cash), contributed to the flat NIM in the quarter.
Compared to the year-ago quarter, NII increased $90 million, or 6%, and NIM increased 16 bps. This improvement was due to the benefits from proactive deposit and wholesale funding management decreasing interest-bearing liabilities costs by 40 bps and the benefit of fixed-rate asset repricing, which combined more than offset the 16 bps decrease in interest-earning asset yields.
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|
Noninterest Income |
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
% Change |
|
|||
|
|
|
December |
September |
December |
|
|
|
|
|
|
2025 |
2025 |
2024 |
Seq |
Yr/Yr |
|
|
|
Noninterest Income |
|
|
|
|
|
|
|
|
Wealth and asset management revenue |
$185 |
$181 |
$163 |
2% |
13% |
|
|
|
Commercial payments revenue |
167 |
157 |
155 |
6% |
8% |
|
|
|
Consumer banking revenue |
143 |
144 |
137 |
(1)% |
4% |
|
|
|
Capital markets fees |
121 |
115 |
123 |
5% |
(2)% |
|
|
|
Commercial banking revenue |
102 |
87 |
109 |
17% |
(6)% |
|
|
|
Mortgage banking net revenue |
56 |
58 |
57 |
(3)% |
(2)% |
|
|
|
Other noninterest income (loss) |
42 |
29 |
(4) |
45% |
NM |
|
|
|
Securities (losses) gains, net |
(5) |
10 |
(8) |
NM |
(38)% |
|
|
|
Total noninterest income |
$811 |
$781 |
$732 |
4% |
11% |
|
Noninterest income of $811 million increased $30 million, or 4%, from the prior quarter and increased $79 million, or 11%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans that are offset in noninterest expense.
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|
Noninterest Income excluding certain items |
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|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
December |
|
September |
|
|
December |
|
|
|
|
|||
|
|
|
2025 |
|
2025 |
|
|
2024 |
|
|
Seq |
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Yr/Yr |
|
|
|
|
Noninterest Income excluding certain items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (U.S. GAAP) |
$811 |
|
|
$781 |
|
|
$732 |
|
|
|
|
|
|
|
|
Interchange litigation matters |
8 |
|
|
18 |
|
|
51 |
|
|
|
|
|
|
|
|
Litigation settlements |
(12) |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
Securities (gains) losses, net |
5 |
|
|
(10) |
|
|
8 |
|
|
|
|
|
|
|
|
Noninterest income excluding certain items(a) |
$812 |
|
|
$789 |
|
|
$791 |
|
|
3% |
|
3% |
|
Noninterest income excluding certain items of $812 million increased $23 million, or 3%, compared to the prior quarter and increased $21 million, or 3%, from the year-ago quarter.
Wealth and asset management revenue increased $4 million, or 2% sequentially, due to an increase in personal asset management revenue. Commercial payments revenue increased $10 million, or 6%, driven by commercial card and Newline revenue. Capital markets fees were up $6 million, or 5%, reflecting seasonal strength in M&A advisory revenue and loan syndications. Commercial banking revenue increased $15 million, or 17%, driven by higher lease syndication and remarketing.
Compared to the year-ago quarter, wealth and asset management revenue increased $22 million, or 13%, with 16% year-over-year AUM growth driving increases in personal asset management revenue and brokerage fees. Commercial payments revenue increased $12 million, or 8%, led by managed services, Newline revenue, and commercial card fees, partially offset by higher earnings credits. Capital markets fees decreased $2 million, or 2%, driven by lower loan syndications revenue, partially offset by higher M&A advisory revenue. Commercial banking revenue decreased $7 million, or 6%, primarily reflecting lower operating lease and other commercial banking revenue.
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|
Noninterest Expense |
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
% Change |
|
|||
|
|
|
December |
September |
December |
|
|
|
|
|
|
2025 |
2025 |
2024 |
Seq |
Yr/Yr |
|
|
|
Noninterest Expense |
|
|
|
|
|
|
|
|
Compensation and benefits |
$683 |
$685 |
$665 |
— |
3% |
|
|
|
Technology and communications |
138 |
128 |
123 |
8% |
12% |
|
|
|
Net occupancy expense |
89 |
89 |
88 |
— |
1% |
|
|
|
Equipment expense |
43 |
44 |
39 |
(2)% |
10% |
|
|
|
Loan and lease expense |
41 |
39 |
36 |
5% |
14% |
|
|
|
Marketing expense |
37 |
34 |
23 |
9% |
61% |
|
|
|
Card and processing expense |
27 |
22 |
21 |
23% |
29% |
|
|
|
Other noninterest expense |
251 |
226 |
231 |
11% |
9% |
|
|
|
Total noninterest expense |
$1,309 |
$1,267 |
$1,226 |
3% |
7% |
|
|
|
|
|
|||||
Noninterest expense of $1.309 billion increased 3% from the prior quarter and increased 7% from the year-ago quarter. The reported results reflect the impact of certain items in the table below.
|
|
Noninterest Expense excluding certain item(s) |
|
|
|
|
|
||||||||
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
December |
|
September |
|
|
December |
|
|
|
|
|
||
|
|
|
2025 |
|
2025 |
|
|
2024 |
|
|
Seq |
|
Yr/Yr |
|
|
|
|
Noninterest Expense excluding certain item(s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (U.S. GAAP) |
$1,309 |
|
|
$1,267 |
|
|
$1,226 |
|
|
|
|
|
|
|
|
Fifth Third Foundation contribution |
(50) |
|
|
— |
|
|
(15) |
|
|
|
|
|
|
|
|
Merger-related expenses |
(13) |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
FDIC special assessment |
25 |
|
|
6 |
|
|
11 |
|
|
|
|
|
|
|
|
Interchange litigation matters |
(3) |
|
|
(9) |
|
|
(4) |
|
|
|
|
|
|
|
|
Noninterest expense excluding certain item(s)(a) |
$1,268 |
|
|
$1,264 |
|
|
$1,218 |
|
|
— |
|
4% |
|
|
|
Non-qualified deferred compensation (expense)/benefit |
5 |
|
|
(11) |
|
|
7 |
|
|
|
|
|
|
|
|
Noninterest expense excluding certain item(s) and non-qualified deferred compensation(a) |
$1,273 |
|
|
$1,253 |
|
|
$1,225 |
|
|
2% |
|
4% |
|
Noninterest expense excluding certain items and non-qualified deferred compensation of $1.273 billion increased 2% compared to the prior quarter with increases in technology and communications and card and processing expense.
Compared to the year-ago quarter, noninterest expense excluding certain items and non-qualified deferred compensation increased $48 million, or 4%, due primarily to increases in compensation and benefits, technology and communications, and marketing expense.
Expenses related to the mark-to-market impact of non-qualified deferred compensation were largely offset in net securities gains/losses through noninterest income in the current and prior periods.
|
|
Average Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
December |
|
September |
|
December |
|
|
|
|
|
|||
|
|
|
2025 |
|
2025 |
|
2024 |
|
Seq |
|
Yr/Yr |
|
|||
|
|
Average Portfolio Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans |
$53,947 |
|
|
$54,170 |
|
|
$51,567 |
|
|
— |
|
5% |
|
|
|
Commercial mortgage loans |
12,079 |
|
|
12,027 |
|
|
11,792 |
|
|
— |
|
2% |
|
|
|
Commercial construction loans |
5,399 |
|
|
5,541 |
|
|
5,702 |
|
|
(3)% |
|
(5)% |
|
|
|
Commercial leases |
3,172 |
|
|
3,177 |
|
|
2,902 |
|
|
— |
|
9% |
|
|
|
Total commercial loans and leases |
$74,597 |
|
|
$74,915 |
|
|
$71,963 |
|
|
— |
|
4% |
|
|
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans |
$17,660 |
|
|
$17,656 |
|
|
$17,322 |
|
|
— |
|
2% |
|
|
|
Home equity |
4,769 |
|
|
4,579 |
|
|
4,125 |
|
|
4% |
|
16% |
|
|
|
Indirect secured consumer loans |
17,879 |
|
|
17,729 |
|
|
16,100 |
|
|
1% |
|
11% |
|
|
|
Credit card |
1,694 |
|
|
1,678 |
|
|
1,668 |
|
|
1% |
|
2% |
|
|
|
Solar energy installation loans |
4,486 |
|
|
4,355 |
|
|
4,137 |
|
|
3% |
|
8% |
|
|
|
Other consumer loans |
2,345 |
|
|
2,414 |
|
|
2,545 |
|
|
(3)% |
|
(8)% |
|
|
|
Total consumer loans |
$48,833 |
|
|
$48,411 |
|
|
$45,897 |
|
|
1% |
|
6% |
|
|
|
Total average portfolio loans and leases |
$123,430 |
|
|
$123,326 |
|
|
$117,860 |
|
|
— |
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Loans and Leases Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans and leases held for sale |
$19 |
|
|
$44 |
|
|
$48 |
|
|
(57)% |
|
(60)% |
|
|
|
Consumer loans held for sale |
698 |
|
|
623 |
|
|
584 |
|
|
12% |
|
20% |
|
|
|
Total average loans and leases held for sale |
$717 |
|
|
$667 |
|
|
$632 |
|
|
7% |
|
13% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average loans and leases |
$124,147 |
|
|
$123,993 |
|
|
$118,492 |
|
|
— |
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities (taxable and tax-exempt) |
$52,512 |
|
|
$54,592 |
|
|
$56,702 |
|
|
(4)% |
|
(7)% |
|
|
|
Other short-term investments |
17,485 |
|
|
14,915 |
|
|
18,319 |
|
|
17% |
|
(5)% |
|
|
|
Total average interest-earning assets |
$194,144 |
|
|
$193,500 |
|
|
$193,513 |
|
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average portfolio loans and leases of $123 billion and average commercial portfolio loans and leases of $75 billion remained stable compared to the prior quarter. Average consumer portfolio loans of $49 billion increased 1%, driven by continued growth in home equity and indirect secured consumer loans.
Compared to the year-ago quarter, total average portfolio loans and leases increased 5%. Average commercial portfolio loans and leases increased 4%, reflecting increases in C&I loans, commercial mortgage loans, and commercial leases. Average consumer portfolio loans increased 6%, primarily due to increases in indirect secured consumer, home equity, and solar energy installation loans.
Average securities (taxable and tax-exempt; amortized cost) of $53 billion in the current quarter decreased 4% compared to the prior quarter and 7% compared to the year-ago quarter. Average other short-term investments (including interest-bearing cash) of $17 billion in the current quarter increased 17% compared to the prior quarter and decreased 5% compared to the year-ago quarter.
|
|
End of Period Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
As of |
|
|
% Change |
|
||||||||
|
|
|
December |
|
September |
|
December |
|
|
|
|
|
|||
|
|
|
2025 |
|
2025 |
|
2024 |
|
Seq |
|
Yr/Yr |
|
|||
|
|
End of Period Portfolio Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial loans and leases |
$73,562 |
|
|
$74,423 |
|
|
$73,293 |
|
|
(1)% |
|
— |
|
|
|
Total consumer loans |
49,089 |
|
|
48,707 |
|
|
46,498 |
|
|
1% |
|
6% |
|
|
|
Total portfolio loans and leases |
$122,651 |
|
|
$123,130 |
|
|
$119,791 |
|
|
— |
|
2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of Period Loans and Leases Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases held for sale |
$733 |
|
|
$576 |
|
|
$640 |
|
|
27% |
|
15% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases |
$123,384 |
|
|
$123,706 |
|
|
$120,431 |
|
|
— |
|
2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities (taxable and tax-exempt) |
$51,961 |
|
|
$52,680 |
|
|
$56,713 |
|
|
(1)% |
|
(8)% |
|
|
|
Other short-term investments |
18,876 |
|
|
17,215 |
|
|
17,120 |
|
|
10% |
|
10% |
|
|
|
Total interest-earning assets |
$194,221 |
|
|
$193,601 |
|
|
$194,264 |
|
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end commercial portfolio loans and leases of $74 billion decreased 1% compared to the prior quarter as the highest quarterly commercial loan production in over three years was more than offset by the decrease in line utilization. Compared to the year-ago quarter, period-end commercial portfolio loans and leases remained stable.
Period-end consumer portfolio loans of $49 billion increased 1% compared to the prior quarter, primarily reflecting increases in home equity and indirect secured consumer loans. Compared to the year-ago quarter, period-end consumer portfolio loans increased 6% driven by increases in indirect secured consumer and home equity loans.
Total period-end securities (taxable and tax-exempt; amortized cost) of $52 billion in the current quarter decreased 1% compared to the prior quarter and decreased 8% compared to the year-ago quarter. Period-end other short-term investments of approximately $19 billion increased 10% compared to the prior and year-ago quarters.
|
Average Deposits |
||||||||||||||
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
December |
|
September |
|
December |
|
|
|
|
|
|||
|
|
|
2025 |
|
2025 |
|
2024 |
|
Seq |
|
Yr/Yr |
|
|||
|
|
Average Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
$41,771 |
|
|
$41,235 |
|
|
$40,137 |
|
|
1% |
|
4% |
|
|
|
Interest checking |
58,612 |
|
|
56,624 |
|
|
59,441 |
|
|
4% |
|
(1)% |
|
|
|
Savings |
16,103 |
|
|
16,376 |
|
|
17,257 |
|
|
(2)% |
|
(7)% |
|
|
|
Money market |
39,409 |
|
|
37,434 |
|
|
37,279 |
|
|
5% |
|
6% |
|
|
|
Total transaction deposits |
$155,895 |
|
|
$151,669 |
|
|
$154,114 |
|
|
3% |
|
1% |
|
|
|
CDs $250,000 or less |
10,541 |
|
|
10,841 |
|
|
10,592 |
|
|
(3)% |
|
— |
|
|
|
Total core deposits |
$166,436 |
|
|
$162,510 |
|
|
$164,706 |
|
|
2% |
|
1% |
|
|
|
CDs over $250,0001 |
1,948 |
|
|
2,244 |
|
|
2,531 |
|
|
(13)% |
|
(23)% |
|
|
|
Total average deposits |
$168,384 |
|
|
$164,754 |
|
|
$167,237 |
|
|
2% |
|
1% |
|
|
|
1CDs over $250,000 includes $0.8BN, $1.0BN, and $1.5BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 12/31/25, 9/30/25, and 12/31/24, respectively. |
|
||||||||||||
Total average deposits of $168 billion increased 2% compared to the prior quarter, primarily driven by growth in interest checking, money market and demand deposits, partially offset by declines in CDs $250,000 or less. The growth in demand deposits reflects our strategic focus on enhancing the deposit mix and represents the third consecutive quarter of demand deposit growth. Period-end total deposits of $172 billion increased 3%.
Compared to the year-ago quarter, total average deposits increased 1%, mainly due to increases in money market and demand deposits, partially offset by decreases in savings and interest checking deposits. Period-end total deposits increased 3%.
The period-end portfolio loan-to-core deposit ratio was 72% in the current quarter, compared to 75% in the prior quarter and 73% in the year-ago quarter.
|
Average Wholesale Funding |
||||||||||||||
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
December |
|
September |
|
December |
|
|
|
|
|
|||
|
|
|
2025 |
|
2025 |
|
2024 |
|
Seq |
|
Yr/Yr |
|
|||
|
|
Average Wholesale Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDs over $250,0001 |
$1,948 |
|
|
$2,244 |
|
|
$2,531 |
|
|
(13)% |
|
(23)% |
|
|
|
Federal funds purchased |
204 |
|
|
198 |
|
|
223 |
|
|
3% |
|
(9)% |
|
|
|
Securities sold under repurchase agreements |
365 |
|
|
376 |
|
|
313 |
|
|
(3)% |
|
17% |
|
|
|
FHLB advances |
2,552 |
|
|
4,920 |
|
|
1,567 |
|
|
(48)% |
|
63% |
|
|
|
Derivative collateral and other secured borrowings |
84 |
|
|
82 |
|
|
76 |
|
|
2% |
|
11% |
|
|
|
Long-term debt |
13,700 |
|
|
14,001 |
|
|
15,492 |
|
|
(2)% |
|
(12)% |
|
|
|
Total average wholesale funding |
$18,853 |
|
|
$21,821 |
|
|
$20,202 |
|
|
(14)% |
|
(7)% |
|
|
|
1CDs over $250,000 includes $0.8BN, $1.0BN, and $1.5BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 12/31/25, 9/30/25, and 12/31/24, respectively. |
|
||||||||||||
Average wholesale funding of $19 billion decreased 14% compared to the prior quarter, driven by a reduction in FHLB advances and long-term debt. The 7% decrease in average wholesale funding compared to the year-ago quarter was primarily attributable to a decrease in long-term debt and CDs over $250,000, inclusive of brokered deposits, partially offset by an increase in FHLB advances.
|
Credit Quality Summary |
||||||||||||||
|
($ in millions) |
As of and For the Three Months Ended |
|||||||||||||
|
|
December |
|
September |
|
June |
|
March |
|
December |
|||||
|
|
2025 |
|
2025 |
|
2025 |
|
2025 |
|
2024 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual portfolio loans and leases (NPLs) |
$767 |
|
|
$768 |
|
|
$853 |
|
|
$966 |
|
|
$823 |
|
|
Repossessed property |
11 |
|
|
12 |
|
|
8 |
|
|
9 |
|
|
9 |
|
|
OREO |
19 |
|
|
21 |
|
|
25 |
|
|
21 |
|
|
21 |
|
|
Total nonperforming portfolio loans and leases and OREO (NPAs) |
$797 |
|
|
$801 |
|
|
$886 |
|
|
$996 |
|
|
$853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPL ratio(g) |
0.62% |
|
|
0.62% |
|
|
0.70% |
|
|
0.79% |
|
|
0.69% |
|
|
NPA ratio(c) |
0.65% |
|
|
0.65% |
|
|
0.72% |
|
|
0.81% |
|
|
0.71% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio loans and leases 30-89 days past due (accrual) |
$360 |
|
|
$348 |
|
|
$277 |
|
|
$385 |
|
|
$303 |
|
|
Portfolio loans and leases 90 days past due (accrual) |
30 |
|
|
29 |
|
|
34 |
|
|
33 |
|
|
32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-89 days past due as a % of portfolio loans and leases |
0.29% |
|
|
0.28% |
|
|
0.23% |
|
|
0.31% |
|
|
0.25% |
|
|
90 days past due as a % of portfolio loans and leases |
0.02% |
|
|
0.02% |
|
|
0.03% |
|
|
0.03% |
|
|
0.03% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses (ALLL), beginning |
$2,265 |
|
|
$2,412 |
|
|
$2,384 |
|
|
$2,352 |
|
|
$2,305 |
|
|
Total net losses charged-off |
(125) |
|
|
(339) |
|
|
(139) |
|
|
(136) |
|
|
(136) |
|
|
Provision for loan and lease losses |
113 |
|
|
192 |
|
|
167 |
|
|
168 |
|
|
183 |
|
|
ALLL, ending |
$2,253 |
|
|
$2,265 |
|
|
$2,412 |
|
|
$2,384 |
|
|
$2,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for unfunded commitments, beginning |
$151 |
|
|
$146 |
|
|
$140 |
|
|
$134 |
|
|
$138 |
|
|
Provision for (benefit from) the reserve for unfunded commitments |
6 |
|
|
5 |
|
|
6 |
|
|
6 |
|
|
(4) |
|
|
Reserve for unfunded commitments, ending |
$157 |
|
|
$151 |
|
|
$146 |
|
|
$140 |
|
|
$134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for credit losses (ACL) |
$2,410 |
|
|
$2,416 |
|
|
$2,558 |
|
|
$2,524 |
|
|
$2,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of portfolio loans and leases |
1.96% |
|
|
1.96% |
|
|
2.09% |
|
|
2.07% |
|
|
2.08% |
|
|
As a % of nonperforming portfolio loans and leases |
314% |
|
|
314% |
|
|
300% |
|
|
261% |
|
|
302% |
|
|
As a % of nonperforming portfolio assets |
302% |
|
|
302% |
|
|
289% |
|
|
253% |
|
|
291% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLL as a % of portfolio loans and leases |
1.84% |
|
|
1.84% |
|
|
1.97% |
|
|
1.95% |
|
|
1.96% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total losses charged-off |
$(177) |
|
|
$(382) |
|
|
$(194) |
|
|
$(173) |
|
|
$(175) |
|
|
Total recoveries of losses previously charged-off |
52 |
|
|
43 |
|
|
55 |
|
|
37 |
|
|
39 |
|
|
Total net losses charged-off |
$(125) |
|
|
$(339) |
|
|
$(139) |
|
|
$(136) |
|
|
$(136) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-off ratio (NCO ratio)(b) |
0.40% |
|
|
1.09% |
|
|
0.45% |
|
|
0.46% |
|
|
0.46% |
|
|
Commercial NCO ratio |
0.27% |
|
|
1.46% |
|
|
0.38% |
|
|
0.35% |
|
|
0.32% |
|
|
Consumer NCO ratio |
0.59% |
|
|
0.52% |
|
|
0.56% |
|
|
0.63% |
|
|
0.68% |
|
The provision for credit losses totaled $119 million in the current quarter. The ACL ratio represented 1.96% of total portfolio loans and leases at quarter end, consistent with the prior quarter and down 12 bps from the year-ago quarter.
Contacts
Investor contact: Matt Curoe (513) 534-2345 | Media contact: Jennifer Hendricks Sullivan (614) 744-7693
