Grew deposits year-over-year and further strengthened liquidity and capital positions
Reported results included a negative $0.06 impact from certain items on page 2 of the earnings release
CINCINNATI–(BUSINESS WIRE)–Fifth Third Bancorp (NASDAQ: FITB):
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Key Financial Data |
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Key Highlights |
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$ in millions for all balance sheet and income statement items |
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1Q24 |
4Q23 |
1Q23 |
Stability:
Profitability:
Growth:
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Income Statement Data |
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Net income available to common shareholders |
$480 |
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$492 |
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$535 |
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Net interest income (U.S. GAAP) |
1,384 |
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1,416 |
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1,517 |
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Net interest income (FTE)(a) |
1,390 |
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1,423 |
|
1,522 |
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Noninterest income |
710 |
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744 |
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696 |
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Noninterest expense |
1,342 |
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1,455 |
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1,331 |
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Per Share Data |
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Earnings per share, basic |
$0.70 |
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$0.72 |
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$0.78 |
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Earnings per share, diluted |
0.70 |
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0.72 |
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0.78 |
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Book value per share |
24.72 |
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25.04 |
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23.87 |
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Tangible book value per share(a) |
17.35 |
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17.64 |
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16.41 |
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Balance Sheet & Credit Quality |
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Average portfolio loans and leases |
$117,334 |
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$118,858 |
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$122,812 |
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Average deposits |
168,122 |
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169,447 |
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160,645 |
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Accumulated other comprehensive loss |
(4,888) |
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(4,487) |
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(4,245) |
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Net charge-off ratio(b) |
0.38 |
% |
0.32 |
% |
0.26 |
% |
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Nonperforming asset ratio(c) |
0.64 |
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0.59 |
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0.51 |
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Financial Ratios |
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Return on average assets |
0.98 |
% |
0.98 |
% |
1.10 |
% |
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Return on average common equity |
11.6 |
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12.9 |
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13.7 |
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Return on average tangible common equity(a) |
17.0 |
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19.8 |
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20.5 |
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CET1 capital(d)(e) |
10.44 |
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10.29 |
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9.28 |
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Net interest margin(a) |
2.86 |
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2.85 |
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3.29 |
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Efficiency(a) |
63.9 |
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67.2 |
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60.0 |
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Other than the Quarterly Financial Review tables beginning on page 14 of the earnings release, 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’s financial results once again reflected balance sheet strength, well-managed deposit costs, disciplined credit risk management, and diversified revenue streams. Expenses remain well-controlled and were down slightly year-over-year when excluding certain items.
Our balance sheet positioning and deposit performance provide flexibility in managing through a range of uncertain economic and regulatory environments. Our credit metrics remain below historical levels, with net charge-offs for the quarter in line with our expectations.
We continue to prudently invest in our strategic priorities as highlighted by strong growth in our treasury management fees and wealth and asset management revenue. We also extended our track record of strong organic growth, adding net new households in consumer and new quality relationships in commercial.
While the economic and regulatory environments remain uncertain, we remain well positioned to respond to a range of potential outcomes. We will continue to follow our guiding principles of stability, profitability, and growth – in that order.
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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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March |
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December |
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March |
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2024 |
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2023 |
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2023 |
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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) |
$1,390 |
|
$1,423 |
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$1,522 |
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(2)% |
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(9)% |
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Provision for credit losses |
94 |
|
55 |
|
164 |
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71% |
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(43)% |
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Noninterest income |
710 |
|
744 |
|
696 |
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(5)% |
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2% |
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Noninterest expense |
1,342 |
|
1,455 |
|
1,331 |
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(8)% |
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1% |
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Income before income taxes(a) |
$664 |
|
$657 |
|
$723 |
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1% |
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(8)% |
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Taxable equivalent adjustment |
$6 |
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$7 |
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$5 |
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(14)% |
|
20% |
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Applicable income tax expense |
138 |
|
120 |
|
160 |
|
15% |
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(14)% |
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Net income |
$520 |
|
$530 |
|
$558 |
|
(2)% |
|
(7)% |
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|
Dividends on preferred stock |
40 |
|
38 |
|
23 |
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5% |
|
74% |
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Net income available to common shareholders |
$480 |
|
$492 |
|
$535 |
|
(2)% |
|
(10)% |
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Earnings per share, diluted |
$0.70 |
|
$0.72 |
|
$0.78 |
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(3)% |
|
(10)% |
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Fifth Third Bancorp (NASDAQ®: FITB) today reported first quarter 2024 net income of $520 million compared to net income of $530 million in the prior quarter and $558 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $480 million, or $0.70 per diluted share, compared to $492 million, or $0.72 per diluted share, in the prior quarter and $535 million, or $0.78 per diluted share, in the year-ago quarter.
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Diluted earnings per share impact of certain item(s) – 1Q24 |
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(after-tax impact(f); $ in millions, except per share data) |
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Update to the FDIC special assessment (noninterest expense) |
$(25) |
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Interchange litigation matters |
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Valuation of Visa total return swap (noninterest income) |
(13) |
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Mastercard litigation (noninterest expense) |
(4) |
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subtotal |
(17) |
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After-tax impact(f) of certain items |
$(42) |
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Diluted earnings per share impact of certain item(s)1 |
$(0.06) |
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Totals may not foot due to rounding; 1Diluted earnings per share impact reflects 690.634 million average diluted shares outstanding |
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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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March |
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December |
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March |
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2024 |
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2023 |
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2023 |
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Seq |
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Yr/Yr |
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Interest Income |
|
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Interest income |
$2,614 |
|
$2,655 |
|
$2,218 |
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(2)% |
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18% |
|
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|
Interest expense |
1,224 |
|
1,232 |
|
696 |
|
(1)% |
|
76% |
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|
Net interest income (NII) |
$1,390 |
|
$1,423 |
|
$1,522 |
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(2)% |
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(9)% |
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Average Yield/Rate Analysis |
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bps Change |
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Yield on interest-earning assets |
5.38% |
|
5.31% |
|
4.80% |
|
7 |
|
58 |
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|
Rate paid on interest-bearing liabilities |
3.36% |
|
3.34% |
|
2.18% |
|
2 |
|
118 |
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Ratios |
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|
Net interest rate spread |
2.02% |
|
1.97% |
|
2.62% |
|
5 |
|
(60) |
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|
Net interest margin (NIM) |
2.86% |
|
2.85% |
|
3.29% |
|
1 |
|
(43) |
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Compared to the prior quarter, NII decreased $33 million, or 2%, primarily reflecting lower average commercial loans, the continued impact of the deposit mix shift from demand to interest-bearing accounts, and the impact of lower day count, partially offset by the increased yields on new production of fixed rate consumer loans. Compared to the prior quarter, NIM increased 1 bp, primarily reflecting higher loan yields and the impact of day count, partially offset by the deposit mix shift. NIM results continue to be impacted by the decision to carry elevated liquidity given the environment, with the combination of cash and other short term investments exceeding $25 billion at quarter-end.
Compared to the year-ago quarter, NII decreased $132 million, or 9%, reflecting the impact of higher funding costs and deposit mix shift from demand to interest-bearing accounts, partially offset by higher loan yields. Compared to the year-ago quarter, NIM decreased 43 bps, reflecting the impact of higher market rates and their effects on deposit pricing and the decision to carry additional cash, partially offset by higher loan yields.
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Noninterest Income |
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($ in millions) |
For the Three Months Ended |
|
% Change |
|
||||||
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|
March |
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December |
|
March |
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2024 |
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2023 |
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2023 |
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Seq |
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Yr/Yr |
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Noninterest Income |
|
|
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|
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|
|
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Service charges on deposits |
$151 |
|
$146 |
|
$137 |
|
3% |
|
10% |
|
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|
Commercial banking revenue |
143 |
|
163 |
|
161 |
|
(12)% |
|
(11)% |
|
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|
Mortgage banking net revenue |
54 |
|
66 |
|
69 |
|
(18)% |
|
(22)% |
|
|
|
Wealth and asset management revenue |
161 |
|
147 |
|
146 |
|
10% |
|
10% |
|
|
|
Card and processing revenue |
102 |
|
106 |
|
100 |
|
(4)% |
|
2% |
|
|
|
Leasing business revenue |
39 |
|
46 |
|
57 |
|
(15)% |
|
(32)% |
|
|
|
Other noninterest income |
50 |
|
54 |
|
22 |
|
(7)% |
|
127% |
|
|
|
Securities gains, net |
10 |
|
15 |
|
4 |
|
(33)% |
|
150% |
|
|
|
Securities gains, net – non-qualifying hedges |
|
|
|
|
|
|
|
|
|
|
|
|
on mortgage servicing rights |
— |
|
1 |
|
— |
|
(100)% |
|
NM |
|
|
|
Total noninterest income |
$710 |
|
$744 |
|
$696 |
|
(5)% |
|
2% |
|
|
|
|
|
|
|
|
|
|
|
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|
|
Reported noninterest income decreased $34 million, or 5%, from the prior quarter, and increased $14 million, or 2%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans.
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Noninterest Income excluding certain items |
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($ in millions) |
For the Three Months Ended |
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||||
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|
March |
|
December |
|
March |
|
% Change |
|
||
|
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|
2024 |
|
2023 |
|
2023 |
|
Seq |
|
Yr/Yr |
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|
|
Noninterest Income excluding certain items |
|
|
|
|
|
|
|
|
|
|
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|
Noninterest income (U.S. GAAP) |
$710 |
|
$744 |
|
$696 |
|
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|
|
|
|
Valuation of Visa total return swap |
17 |
|
22 |
|
31 |
|
|
|
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|
|
Securities (gains) losses, net |
(10) |
|
(15) |
|
(4) |
|
|
|
|
|
|
|
Noninterest income excluding certain items(a) |
$717 |
|
$751 |
|
$723 |
|
(5)% |
|
(1)% |
|
|
|
|
|
|
|
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|
Noninterest income excluding certain items decreased $34 million, or 5%, from the prior quarter, and decreased $6 million, or 1%, from the year-ago quarter.
Compared to the prior quarter, service charges on deposits increased $5 million, or 3%, primarily reflecting an increase in commercial treasury management fees as well as consumer deposit fees. Commercial banking revenue decreased $20 million, or 12%, primarily reflecting decreases in institutional brokerage revenue and client financial risk management revenue, partially offset by an increase in loan syndication revenue and corporate bond fees. Mortgage banking net revenue decreased $12 million, or 18%, primarily reflecting decreases in MSR net valuation adjustments and origination fees and gains on loan sales, partially offset by a decrease in MSR asset decay. Wealth and asset management revenue increased $14 million, or 10%, primarily driven by seasonally strong tax-related private client service revenue and an increase in personal asset management revenue. Card and processing revenue decreased $4 million, or 4%, driven by a decrease in interchange revenue. Leasing business revenue decreased $7 million, or 15%, primarily reflecting lower lease remarketing revenue.
Compared to the year-ago quarter, service charges on deposits increased $14 million, or 10%, primarily reflecting an increase in commercial treasury management fees. Commercial banking revenue decreased $18 million, or 11%, primarily reflecting decreases in client financial risk management revenue, M&A advisory revenue, and loan syndication revenue, partially offset by an increase in corporate bond fees. Mortgage banking net revenue decreased $15 million, or 22%, primarily reflecting decreases in MSR net valuation adjustments and origination fees and gains on loan sales. Wealth and asset management revenue increased $15 million, or 10%, primarily reflecting increases in personal asset management revenue and brokerage fees. Card and processing revenue increased $2 million, or 2%, driven by higher interchange revenue. Leasing business revenue decreased $18 million, or 32%, reflecting decreases in operating lease revenue and lease remarketing revenue.
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|
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
% Change |
|
||||||
|
|
|
March |
|
December |
|
March |
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2023 |
|
Seq |
|
Yr/Yr |
|
|
|
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
$753 |
|
$659 |
|
$757 |
|
14% |
|
(1)% |
|
|
|
Net occupancy expense |
87 |
|
83 |
|
81 |
|
5% |
|
7% |
|
|
|
Technology and communications |
117 |
|
117 |
|
118 |
|
— |
|
(1)% |
|
|
|
Equipment expense |
37 |
|
37 |
|
37 |
|
— |
|
— |
|
|
|
Card and processing expense |
20 |
|
21 |
|
22 |
|
(5)% |
|
(9)% |
|
|
|
Leasing business expense |
25 |
|
27 |
|
34 |
|
(7)% |
|
(26)% |
|
|
|
Marketing expense |
32 |
|
30 |
|
29 |
|
7% |
|
10% |
|
|
|
Other noninterest expense |
271 |
|
481 |
|
253 |
|
(44)% |
|
7% |
|
|
|
Total noninterest expense |
$1,342 |
|
$1,455 |
|
$1,331 |
|
(8)% |
|
1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported noninterest expense decreased $113 million, or 8%, from the prior quarter, and increased $11 million, or 1%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below.
|
|
Noninterest Expense excluding certain item(s) |
|
|
|
|
|
|||||
|
|
($ in millions) |
For the Three Months Ended |
|
% Change |
|
||||||
|
|
|
March |
|
December |
|
March |
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2023 |
|
Seq |
|
Yr/Yr |
|
|
|
Noninterest Expense excluding certain item(s) |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (U.S. GAAP) |
$1,342 |
|
$1,455 |
|
$1,331 |
|
|
|
|
|
|
|
FDIC special assessment |
(33) |
|
(224) |
|
— |
|
|
|
|
|
|
|
Mastercard litigation |
(5) |
|
— |
|
— |
|
|
|
|
|
|
|
Fifth Third Foundation contribution |
— |
|
(15) |
|
— |
|
|
|
|
|
|
|
Restructuring severance expense |
— |
|
(5) |
|
(12) |
|
|
|
|
|
|
|
Noninterest expense excluding certain item(s)(a) |
$1,304 |
|
$1,211 |
|
$1,319 |
|
8% |
|
(1)% |
|
Compared to the prior quarter, noninterest expense excluding certain items increased $93 million, or 8%, primarily reflecting a seasonal increase in compensation and benefits expense. Noninterest expense in the current quarter included a $15 million expense related to the impact of non-qualified deferred compensation mark-to-market compared to a $17 million expense in the prior quarter, both of which were largely offset in net securities gains through noninterest income.
Compared to the year-ago quarter, noninterest expense excluding certain items decreased $15 million, or 1%, primarily reflecting decreases in leasing business expense and other noninterest expense (excluding the aforementioned certain items), offset by increases in net occupancy expense and marketing expense. The year-ago quarter included a $12 million expense to noninterest expense related to non-qualified deferred compensation mark-to-market (which was largely offset in net securities gains through noninterest income).
|
|
Average Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
% Change |
|
||||||
|
|
|
March |
|
December |
|
March |
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2023 |
|
Seq |
|
Yr/Yr |
|
|
|
Average Portfolio Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans |
$53,183 |
|
$54,633 |
|
$58,149 |
|
(3)% |
|
(9)% |
|
|
|
Commercial mortgage loans |
11,339 |
|
11,338 |
|
11,121 |
|
— |
|
2% |
|
|
|
Commercial construction loans |
5,732 |
|
5,727 |
|
5,507 |
|
— |
|
4% |
|
|
|
Commercial leases |
2,542 |
|
2,535 |
|
2,662 |
|
— |
|
(5)% |
|
|
|
Total commercial loans and leases |
$72,796 |
|
$74,233 |
|
$77,439 |
|
(2)% |
|
(6)% |
|
|
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans |
$16,977 |
|
$17,129 |
|
$17,581 |
|
(1)% |
|
(3)% |
|
|
|
Home equity |
3,933 |
|
3,905 |
|
4,005 |
|
1% |
|
(2)% |
|
|
|
Indirect secured consumer loans |
15,172 |
|
15,129 |
|
16,598 |
|
— |
|
(9)% |
|
|
|
Credit card |
1,773 |
|
1,829 |
|
1,780 |
|
(3)% |
|
— |
|
|
|
Solar energy installation loans |
3,794 |
|
3,630 |
|
2,169 |
|
5% |
|
75% |
|
|
|
Other consumer loans |
2,889 |
|
3,003 |
|
3,240 |
|
(4)% |
|
(11)% |
|
|
|
Total consumer loans |
$44,538 |
|
$44,625 |
|
$45,373 |
|
— |
|
(2)% |
|
|
|
Total average portfolio loans and leases |
$117,334 |
|
$118,858 |
|
$122,812 |
|
(1)% |
|
(4)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Loans and Leases Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans and leases held for sale |
$74 |
|
$72 |
|
$56 |
|
3% |
|
32% |
|
|
|
Consumer loans held for sale |
291 |
|
379 |
|
747 |
|
(23)% |
|
(61)% |
|
|
|
Total average loans and leases held for sale |
$365 |
|
$451 |
|
$803 |
|
(19)% |
|
(55)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average loans and leases |
$117,699 |
|
$119,309 |
|
$123,615 |
|
(1)% |
|
(5)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities (taxable and tax-exempt) |
$56,456 |
|
$57,351 |
|
$58,514 |
|
(2)% |
|
(4)% |
|
|
|
Other short-term investments |
21,194 |
|
21,506 |
|
5,278 |
|
(1)% |
|
302% |
|
|
|
Total average interest-earning assets |
$195,349 |
|
$198,166 |
|
$187,407 |
|
(1)% |
|
4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compared to the prior quarter, total average portfolio loans and leases decreased 1%, primarily reflecting a decrease in commercial and industrial (C&I) balances driven by lower demand from corporate borrowers, partially offset by an increase in solar energy installation loans. Average commercial portfolio loans and leases decreased 2%, reflecting a decrease in C&I loan balances. Average consumer portfolio loans were flat, primarily reflecting an increase in solar energy installation loan balances, offset by a decrease in residential mortgage loan balances.
Compared to the year-ago quarter, total average portfolio loans and leases decreased 4%, reflecting decreases in both the commercial and consumer portfolios. Average commercial portfolio loans and leases decreased 6%, primarily reflecting a decrease in C&I loan balances, partially offset by increases in commercial construction loan balances and commercial mortgage loan balances. Average consumer portfolio loans decreased 2%, primarily reflecting decreases in indirect secured consumer loan balances and residential mortgage loan balances, partially offset by an increase in solar energy installation loan balances.
Average securities (taxable and tax-exempt; amortized cost) of $56 billion in the current quarter decreased 2% compared to the prior quarter and decreased 4% compared to the year-ago quarter. Average other short-term investments (including interest-bearing cash) of $21 billion in the current quarter decreased 1% compared to the prior quarter and increased 302% compared to the year-ago quarter.
On January 3, 2024, Fifth Third transferred $12.6 billion (amortized cost) of securities, with an unrealized loss of $994 million, from available-for-sale to held-to-maturity. This transfer was in response to Fifth Third’s decision to hold these securities to maturity in order to reduce potential capital volatility associated with investment security market price fluctuations.
Total period-end commercial portfolio loans and leases of $72 billion decreased 1% compared to the prior quarter, primarily reflecting a decrease in C&I loan balances, partially offset by an increase in commercial construction loan balances. Compared to the year-ago quarter, total period-end commercial portfolio loans decreased 7%, primarily reflecting a decrease in C&I loan balances, partially offset by an increase in commercial construction loan balances. Period-end commercial revolving line utilization was 36%, compared to 35% in the prior quarter and 37% in the year-ago quarter.
Period-end consumer portfolio loans of $45 billion were flat compared to the prior quarter, reflecting increases in indirect secured consumer loan balances and solar energy installation loan balances, partially offset by decreases in other consumer loan balances and credit card balances. Compared to the year-ago quarter, total period-end consumer portfolio loans decreased 2%, reflecting decreases in indirect secured consumer loan balances and other loan balances, partially offset by an increase in solar energy installation loan balances.
Total period-end securities (taxable and tax-exempt; amortized cost) of $56 billion in the current quarter decreased 2% compared to the prior quarter and decreased 2% compared to the year-ago quarter. Period-end other short-term investments of approximately $23 billion increased 3% compared to the prior quarter, and increased 133% compared to the year-ago quarter.
|
Average Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
% Change |
|
||||||
|
|
|
March |
|
December |
|
March |
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2023 |
|
Seq |
|
Yr/Yr |
|
|
|
Average Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
$40,839 |
|
$43,396 |
|
$50,737 |
|
(6)% |
|
(20)% |
|
|
|
Interest checking |
58,677 |
|
57,114 |
|
48,717 |
|
3% |
|
20% |
|
|
|
Savings |
18,107 |
|
18,252 |
|
23,107 |
|
(1)% |
|
(22)% |
|
|
|
Money market |
34,589 |
|
34,292 |
|
28,420 |
|
1% |
|
22% |
|
|
|
Foreign office(g) |
145 |
|
178 |
|
143 |
|
(19)% |
|
1% |
|
|
|
Total transaction deposits |
$152,357 |
|
$153,232 |
|
$151,124 |
|
(1)% |
|
1% |
|
|
|
CDs $250,000 or less |
10,244 |
|
10,556 |
|
5,173 |
|
(3)% |
|
98% |
|
|
|
Total core deposits |
$162,601 |
|
$163,788 |
|
$156,297 |
|
(1)% |
|
4% |
|
|
|
CDs over $250,000 |
5,521 |
|
5,659 |
|
4,348 |
|
(2)% |
|
27% |
|
|
|
Total average deposits |
$168,122 |
|
$169,447 |
|
$160,645 |
|
(1)% |
|
5% |
|
|
|
CDs over $250,000 includes $4.7BN, $4.8BN, and $4.1BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 3/31/24, 12/31/23, and 3/31/23, respectively. |
|
|||||||||
Compared to the prior quarter, total average deposits decreased 1%, primarily driven by a decline in demand account balances from commercial customer seasonal impacts, partially offset by increases in interest checking and money market balances. Average demand deposits represented 25% of total core deposits in the current quarter, compared to 26% in the prior quarter. Compared to the prior quarter, average consumer segment deposits decreased 1%, average commercial segment deposits were flat, and average wealth & asset management segment deposits were flat. Period-end total deposits were flat compared to the prior quarter.
Compared to the year-ago quarter, total average deposits increased 5%, primarily reflecting increases in interest checking and money market balances, partially offset by decreases in demand account balances and savings balances. Period-end total deposits increased 4% compared to the year-ago quarter.
The period-end portfolio loan-to-core deposit ratio was 71% in the current quarter, compared to 72% in the prior quarter and 78% in the year-ago quarter. Estimated uninsured deposits were approximately $70 billion, or 41% of total deposits, as of quarter end.
|
Average Wholesale Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
% Change |
|
||||||
|
|
|
March |
|
December |
|
March |
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
2023 |
|
Seq |
|
Yr/Yr |
|
|
|
Average Wholesale Funding |
|
|
|
|
|
|
|
|
|
|
|
|
CDs over $250,000 |
$5,521 |
|
$5,659 |
|
$4,348 |
|
(2)% |
|
27% |
|
|
|
Federal funds purchased |
201 |
|
191 |
|
487 |
|
5% |
|
(59)% |
|
|
|
Securities sold under repurchase agreements |
366 |
|
350 |
|
327 |
|
5% |
|
12% |
|
|
|
FHLB advances |
3,111 |
|
3,293 |
|
4,803 |
|
(6)% |
|
(35)% |
|
|
|
Derivative collateral and other secured borrowings |
57 |
|
34 |
|
245 |
|
68% |
|
(77)% |
|
|
|
Long-term debt |
15,515 |
|
16,588 |
|
13,510 |
|
(6)% |
|
15% |
|
|
|
Total average wholesale funding |
$24,771 |
|
$26,115 |
|
$23,720 |
|
(5)% |
|
4% |
|
|
|
CDs over $250,000 includes $4.7BN, $4.8BN, and $4.1BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 3/31/24, 12/31/23, and 3/31/23, respectively. |
|
|||||||||
Compared to the prior quarter, average wholesale funding decreased 5%, primarily reflecting decreases in long-term debt and FHLB advances. Compared to the year-ago quarter, average wholesale funding increased 4%, primarily reflecting an increase in long-term debt and CDs over $250,000, partially offset by a decrease in FHLB advances.
|
Credit Quality Summary |
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
As of and For the Three Months Ended |
|||||||||
|
|
March |
|
December |
|
September |
|
June |
|
March |
|
|
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual portfolio loans and leases (NPLs) |
$708 |
|
$649 |
|
$570 |
|
$629 |
|
$593 |
|
|
Repossessed property |
8 |
|
10 |
|
11 |
|
8 |
|
8 |
|
|
OREO |
27 |
|
29 |
|
31 |
|
24 |
|
22 |
|
|
Total nonperforming portfolio loans and leases and OREO (NPAs) |
$743 |
|
$688 |
|
$612 |
|
$661 |
|
$623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPL ratio(h) |
0.61% |
|
0.55% |
|
0.47% |
|
0.52% |
|
0.48% |
|
|
NPA ratio(c) |
0.64% |
|
0.59% |
|
0.51% |
|
0.54% |
|
0.51% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio loans and leases 30-89 days past due (accrual) |
$342 |
|
$359 |
|
$316 |
|
$339 |
|
$317 |
|
|
Portfolio loans and leases 90 days past due (accrual) |
35 |
|
36 |
|
29 |
|
51 |
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-89 days past due as a % of portfolio loans and leases |
0.29% |
|
0.31% |
|
0.26% |
|
0.28% |
|
0.26% |
|
|
90 days past due as a % of portfolio loans and leases |
0.03% |
|
0.03% |
|
0.02% |
|
0.04% |
|
0.04% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses (ALLL), beginning |
$2,322 |
|
$2,340 |
|
$2,327 |
|
$2,215 |
|
$2,194 |
|
|
Impact of adoption of ASU 2022-02 |
— |
|
— |
|
— |
|
— |
|
(49) |
|
|
Total net losses charged-off |
(110) |
|
(96) |
|
(124) |
|
(90) |
|
(78) |
|
|
Provision for loan and lease losses |
106 |
|
78 |
|
137 |
|
202 |
|
148 |
|
|
ALLL, ending |
$2,318 |
|
$2,322 |
|
$2,340 |
|
$2,327 |
|
$2,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for unfunded commitments, beginning |
$166 |
|
$189 |
|
$207 |
|
$232 |
|
$216 |
|
|
(Benefit from) provision for the reserve for unfunded commitments |
(12) |
|
(23) |
|
(18) |
|
(25) |
|
16 |
|
|
Reserve for unfunded commitments, ending |
$154 |
|
$166 |
|
$189 |
|
$207 |
|
$232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for credit losses (ACL) |
$2,472 |
|
$2,488 |
|
$2,529 |
|
$2,534 |
|
$2,447 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL ratios: |
|
|
|
|
|
|
|
|
|
|
|
As a % of portfolio loans and leases |
2.12% |
|
2.12% |
|
2.11% |
|
2.08% |
|
1.99% |
|
|
As a % of nonperforming portfolio loans and leases |
349% |
|
383% |
|
443% |
|
403% |
|
413% |
|
|
As a % of nonperforming portfolio assets |
333% |
|
362% |
|
413% |
|
383% |
|
393% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLL as a % of portfolio loans and leases |
1.99% |
|
1.98% |
|
1.95% |
|
1.91% |
|
1.80% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total losses charged-off |
$(146) |
|
$(133) |
|
$(158) |
|
$(121) |
|
$(110) |
|
|
Total recoveries of losses previously charged-off |
36 |
|
37 |
|
34 |
|
31 |
|
32 |
|
|
Total net losses charged-off |
$(110) |
|
$(96) |
|
$(124) |
|
$(90) |
|
$(78) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-off ratio (NCO ratio)(b) |
0.38% |
|
0.32% |
|
0.41% |
|
0.29% |
|
0.26% |
|
|
Commercial NCO ratio |
0.19% |
|
0.13% |
|
0.34% |
|
0.16% |
|
0.17% |
|
|
Consumer NCO ratio |
0.67% |
|
0.64% |
|
0.53% |
|
0.50% |
|
0.42% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Contacts
Investor contact: Matt Curoe (513) 534-2345
Media contact: Jennifer Hendricks Sullivan (614) 744-7693
