Core business momentum remains strong and Comerica acquisition meaningfully propels growth trajectory
Reported results included a net negative $0.68 impact from certain items on page 2
CINCINNATI–(BUSINESS WIRE)–Fifth Third Bancorp (NASDAQ: FITB):
|
Key Financial Data |
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Key Highlights |
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$ in millions for all balance sheet and income statement items |
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1Q26 |
4Q25 |
1Q25 |
Successfully closed Comerica acquisition Opening Balances as of February 1st:
Stability:
Profitability:
Growth:
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|||
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Income Statement Data |
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|||
|
|
Net income available to common shareholders |
$128 |
|
$699 |
|
$478 |
|
|||
|
|
Net interest income (U.S. GAAP) |
1,934 |
|
1,529 |
|
1,437 |
|
|||
|
|
Net interest income (FTE)(a) |
1,939 |
|
1,533 |
|
1,442 |
|
|||
|
|
Noninterest income |
895 |
|
811 |
|
694 |
|
|||
|
|
Noninterest expense |
2,395 |
|
1,309 |
|
1,304 |
|
|||
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Per Share Data |
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|||
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|
Earnings per share, basic |
$0.16 |
|
$1.05 |
|
$0.71 |
|
|||
|
|
Earnings per share, diluted |
0.15 |
|
1.04 |
|
0.71 |
|
|||
|
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Book value per share |
35.24 |
|
30.18 |
|
27.41 |
|
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Tangible book value per share(a) |
22.88 |
|
22.60 |
|
19.92 |
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Balance Sheet & Credit Quality |
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Average portfolio loans and leases |
$157,632 |
|
$123,430 |
|
$121,272 |
|
|||
|
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Average deposits |
209,352 |
|
168,384 |
|
164,157 |
|
|||
|
|
Accumulated other comprehensive loss |
(3,234) |
|
(3,110) |
|
(3,895) |
|
|||
|
|
Net charge-off ratio(b) |
0.37 |
% |
0.40 |
% |
0.46 |
% |
|||
|
|
Nonperforming asset ratio(c) |
0.57 |
|
0.65 |
|
0.81 |
|
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|||
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Financial Ratios |
|
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|
|||
|
|
Return on average assets |
0.25 |
% |
1.36 |
% |
0.99 |
% |
|||
|
|
Return on average common equity |
1.8 |
|
14.0 |
|
10.8 |
|
|||
|
|
Return on average tangible common equity(a) |
3.5 |
|
19.0 |
|
15.2 |
|
|||
|
|
CET1 capital(d) |
9.96 |
|
10.81 |
|
10.43 |
|
|||
|
|
Net interest margin(a) |
3.30 |
|
3.13 |
|
3.03 |
|
|||
|
|
Efficiency(a) |
84.5 |
|
55.8 |
|
61.0 |
|
|||
|
|
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: |
The first quarter reflected continued momentum across Fifth Third. We delivered strong loan and deposit growth, driven by new commercial relationships and continued household expansion. We closed the acquisition of Comerica on February 1st, and early financial benefits are already showing up, including strong net interest margin expansion and tangible book value per share growth.
Integration is progressing as we expected. We have integrated the combined management teams and are retaining key customer‑facing colleagues, supporting continuity for clients as we move forward as one organization. We are also seeing early revenue synergies across both commercial and consumer businesses.
Our focus is unchanged: stability, profitability, and growth, in that order. Disciplined execution will drive growth and deepen client relationships as we expand in our attractive footprint markets, while maintaining strong credit performance and delivering the expected financial synergies from Comerica. We are building a better and more resilient institution and remain committed to delivering consistent, long-term value for shareholders.
|
|
Income Statement Highlights |
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|
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|
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|
|
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||
|
|
($ in millions, except per share data) |
For the Three Months Ended |
|
% Change |
|
||||||||
|
|
|
March |
|
December |
|
March |
|
|
|
|
|
||
|
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|
2026 |
|
2025 |
|
2025 |
|
Seq |
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Yr/Yr |
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||
|
|
Condensed Statements of Income |
|
|
|
|
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||
|
|
Net interest income (NII)(a) |
$1,939 |
|
$1,533 |
|
$1,442 |
|
26 |
% |
|
34 |
% |
|
|
|
Provision for credit losses |
227 |
|
119 |
|
174 |
|
91 |
% |
|
30 |
% |
|
|
|
Noninterest income |
895 |
|
811 |
|
694 |
|
10 |
% |
|
29 |
% |
|
|
|
Noninterest expense |
2,395 |
|
1,309 |
|
1,304 |
|
83 |
% |
|
84 |
% |
|
|
|
Income before income taxes(a) |
$212 |
|
$916 |
|
$658 |
|
(77 |
)% |
|
(68 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Taxable equivalent adjustment |
$5 |
|
$4 |
|
$5 |
|
25 |
% |
|
— |
|
|
|
|
Applicable income tax expense |
42 |
|
181 |
|
138 |
|
(77 |
)% |
|
(70 |
)% |
|
|
|
Net income |
$165 |
|
$731 |
|
$515 |
|
(77 |
)% |
|
(68 |
)% |
|
|
|
Dividends on preferred stock |
37 |
|
32 |
|
37 |
|
16 |
% |
|
— |
|
|
|
|
Net income available to common shareholders |
$128 |
|
$699 |
|
$478 |
|
(82 |
)% |
|
(73 |
)% |
|
|
|
Earnings per share, diluted |
$0.15 |
|
$1.04 |
|
$0.71 |
|
(86 |
)% |
|
(79 |
)% |
|
Fifth Third Bancorp (NASDAQ®: FITB) today reported first quarter 2026 net income available to common shareholders of $128 million, or $0.15 per diluted share, compared to $699 million, or $1.04 per diluted share, in the prior quarter and $478 million, or $0.71 per diluted share, in the year-ago quarter.
On February 1, 2026, Fifth Third completed the acquisition of Comerica Incorporated in an all-stock transaction valued at approximately $12.7 billion. First quarter results include two months of activity for Comerica.
|
|
Diluted earnings per share impact of certain item(s) – 1Q26 |
|
|
|
|
(after-tax impact; $ in millions, except per share data) |
|
|
|
|
|
|
|
|
|
Merger-related charges(e)1,2 |
$(510) |
|
|
|
Merger-related Day 1 ACL build(e) |
(63) |
|
|
|
Interchange litigation matters(e) |
6 |
|
|
|
|
|
|
|
|
After-tax impact of certain item(s) |
$(567) |
|
|
|
|
|
|
|
|
Diluted earnings per share impact of certain item(s)3 |
$(0.68) |
|
|
|
|
|
|
|
|
Totals may not foot due to rounding; 1A portion of the adjustments related to merger-related expenses are not tax-deductible; 2Pre-tax merger-related charges increased noninterest expense by $635 million and decreased noninterest income by $22 million; 3Diluted earnings per share impact reflects 830.274 million average diluted shares outstanding |
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|
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|
|
Net Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(FTE; $ in millions)(a) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
March |
|
December |
|
March |
|
|
|
|
|
|||
|
|
|
2026 |
|
2025 |
|
2025 |
|
Seq |
|
Yr/Yr |
|
|||
|
|
Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$2,977 |
|
|
$2,472 |
|
|
$2,437 |
|
|
20% |
|
22% |
|
|
|
Interest expense |
1,038 |
|
|
939 |
|
|
995 |
|
|
11% |
|
4% |
|
|
|
Net interest income (NII) |
$1,939 |
|
|
$1,533 |
|
|
$1,442 |
|
|
26% |
|
34% |
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Average Yield/Rate Analysis |
|
|
|
|
|
|
|
|
|
bps Change |
|
||
|
|
Yield on interest-earning assets |
5.07% |
|
|
5.05% |
|
|
5.13% |
|
|
2 |
|
(6) |
|
|
|
Rate paid on interest-bearing liabilities |
2.44% |
|
|
2.60% |
|
|
2.80% |
|
|
(16) |
|
(36) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
2.63% |
|
|
2.45% |
|
|
2.33% |
|
|
18 |
|
30 |
|
|
|
Net interest margin (NIM) |
3.30% |
|
|
3.13% |
|
|
3.03% |
|
|
17 |
|
27 |
|
Fully taxable-equivalent (FTE) NII of $1.939 billion increased $406 million, or 26%, compared to the prior quarter. This improvement primarily reflects contributions from the Comerica acquisition, lower funding costs and disciplined balance sheet management. These benefits were partially offset by the impact of market rates on floating rate loans and lower day count. These same factors contributed to the 17 bps increase in NIM compared to the prior quarter. Purchase accounting accretion contributed approximately $38 million to net interest income in the quarter.
Compared to the year-ago quarter, NII increased $497 million, or 34%, and NIM increased 27 bps. This improvement was driven by the addition of Comerica earning assets and lower funding costs, partially offset by lower market rates impacting earning asset yields.
|
|
Noninterest Income |
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
% Change |
|
|||
|
|
|
March |
December |
March |
|
|
|
|
|
|
2026 |
2025 |
2025 |
Seq |
Yr/Yr |
|
|
|
Noninterest Income |
|
|
|
|
|
|
|
|
Wealth and asset management revenue |
$233 |
$185 |
$172 |
26% |
35% |
|
|
|
Commercial payments revenue |
218 |
167 |
153 |
31% |
42% |
|
|
|
Consumer banking revenue |
146 |
143 |
137 |
2% |
7% |
|
|
|
Capital markets fees |
134 |
121 |
90 |
11% |
49% |
|
|
|
Commercial banking revenue |
105 |
102 |
80 |
3% |
31% |
|
|
|
Mortgage banking net revenue |
44 |
56 |
57 |
(21)% |
(23)% |
|
|
|
Other noninterest income |
27 |
42 |
14 |
(36)% |
93% |
|
|
|
Securities losses, net |
(12) |
(5) |
(9) |
140% |
33% |
|
|
|
Total noninterest income |
$895 |
$811 |
$694 |
10% |
29% |
|
Noninterest income of $895 million increased $84 million, or 10%, from the prior quarter and increased $201 million, or 29%, from the year-ago quarter. Both comparisons reflect two months of results from Comerica in the quarter. The reported results reflect the impact of certain items in the table below, including securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans that are offset in noninterest expense.
|
|
Noninterest Income excluding certain items |
|||||||||||||
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
March |
|
December |
|
|
March |
|
|
|
|
|||
|
|
|
2026 |
|
2025 |
|
|
2025 |
|
|
Seq |
|
Yr/Yr |
|
|
|
|
Noninterest Income excluding certain items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (U.S. GAAP) |
$895 |
|
|
$811 |
|
|
$694 |
|
|
|
|
|
|
|
|
Merger-related charges |
22 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
Interchange litigation matters |
(8) |
|
|
8 |
|
|
18 |
|
|
|
|
|
|
|
|
Litigation settlements |
— |
|
|
(12) |
|
|
— |
|
|
|
|
|
|
|
|
Securities losses, net |
12 |
|
|
5 |
|
|
9 |
|
|
|
|
|
|
|
|
Noninterest income excluding certain items(a) |
$921 |
|
|
$812 |
|
|
$721 |
|
|
13% |
|
28% |
|
Noninterest income excluding certain items of $921 million increased $109 million, or 13%, compared to the prior quarter and increased $200 million, or 28%, from the year-ago quarter.
Comparisons to the prior and year-ago quarters were primarily driven by merger‑related impacts with additional incremental contributions from positive business momentum. Wealth and asset management revenue totaled $233 million, supported by seasonal tax‑related revenue and higher personal asset management revenue. Commercial payments revenue was $218 million, reflecting continued strength in core treasury services. Capital markets fees of $134 million were driven by client financial risk management revenue. Commercial banking revenue totaled $105 million, reflecting higher commercial lending‑related fees. Mortgage banking net revenue was $44 million, reflecting lower MSR net valuation adjustments.
|
|
Noninterest Expense |
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
% Change |
|
|||
|
|
|
March |
December |
March |
|
|
|
|
|
|
2026 |
2025 |
2025 |
Seq |
Yr/Yr |
|
|
|
Noninterest Expense |
|
|
|
|
|
|
|
|
Compensation and benefits |
$1,410 |
$683 |
$750 |
106% |
88% |
|
|
|
Technology and communications |
204 |
138 |
123 |
48% |
66% |
|
|
|
Net occupancy expense |
140 |
89 |
87 |
57% |
61% |
|
|
|
Card and processing expense |
79 |
27 |
21 |
193% |
276% |
|
|
|
Equipment expense |
55 |
43 |
42 |
28% |
31% |
|
|
|
Loan and lease expense |
42 |
41 |
30 |
2% |
40% |
|
|
|
Marketing expense |
50 |
37 |
28 |
35% |
79% |
|
|
|
Other noninterest expense |
415 |
251 |
223 |
65% |
86% |
|
|
|
Total noninterest expense |
$2,395 |
$1,309 |
$1,304 |
83% |
84% |
|
Noninterest expense of $2.395 billion increased 83% from the prior quarter and increased 84% from the year-ago quarter. Both comparisons include two months of Comerica results in the quarter and the reported results reflect the impact of certain items in the table below.
|
|
Noninterest Expense excluding certain item(s) |
|
|
|
|
|
||||||||
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
March |
|
December |
|
|
March |
|
|
|
|
|
||
|
|
|
2026 |
|
2025 |
|
|
2025 |
|
|
Seq |
|
Yr/Yr |
|
|
|
|
Noninterest Expense excluding certain item(s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (U.S. GAAP) |
$2,395 |
|
|
$1,309 |
|
|
$1,304 |
|
|
|
|
|
|
|
|
Merger-related charges |
(635) |
|
|
(13) |
|
|
— |
|
|
|
|
|
|
|
|
Fifth Third Foundation contribution |
— |
|
|
(50) |
|
|
— |
|
|
|
|
|
|
|
|
FDIC special assessment |
— |
|
|
25 |
|
|
— |
|
|
|
|
|
|
|
|
Interchange litigation matters |
— |
|
|
(3) |
|
|
— |
|
|
|
|
|
|
|
|
Noninterest expense excluding certain item(s)(a) |
$1,760 |
|
|
$1,268 |
|
|
$1,304 |
|
|
39% |
|
35% |
|
|
|
Non-qualified deferred compensation benefit |
9 |
|
|
5 |
|
|
4 |
|
|
|
|
|
|
|
|
Noninterest expense excluding certain item(s) and non-qualified deferred compensation(a) |
$1,769 |
|
|
$1,273 |
|
|
$1,308 |
|
|
39% |
|
35% |
|
Noninterest expense excluding certain items and non-qualified deferred compensation of $1.769 billion increased 39% compared to the prior quarter and increased 35% from the year-ago quarter. Expenses in the quarter were impacted by ongoing costs associated with the merger and seasonal-related increases in compensation and benefits. Merger-related expenses of $635 million noted above represent approximately half of the expected full-year charges.
|
|
Average Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||||
|
|
|
March |
|
December |
|
March |
|
|
|
|
|
|||||
|
|
|
2026 |
|
2025 |
|
2025 |
|
Seq |
|
Yr/Yr |
|
|||||
|
|
Average Portfolio Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Commercial loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Commercial and industrial loans |
$73,264 |
|
|
$53,947 |
|
|
$53,401 |
|
|
36 |
% |
|
37 |
% |
|
|
|
Commercial mortgage loans |
21,969 |
|
|
12,079 |
|
|
12,368 |
|
|
82 |
% |
|
78 |
% |
|
|
|
Commercial construction loans |
7,278 |
|
|
5,399 |
|
|
5,797 |
|
|
35 |
% |
|
26 |
% |
|
|
|
Commercial leases |
3,347 |
|
|
3,172 |
|
|
3,110 |
|
|
6 |
% |
|
8 |
% |
|
|
|
Total commercial loans and leases |
$105,858 |
|
|
$74,597 |
|
|
$74,676 |
|
|
42 |
% |
|
42 |
% |
|
|
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Residential mortgage loans |
$18,848 |
|
|
$17,660 |
|
|
$17,552 |
|
|
7 |
% |
|
7 |
% |
|
|
|
Home equity |
6,064 |
|
|
4,769 |
|
|
4,222 |
|
|
27 |
% |
|
44 |
% |
|
|
|
Indirect secured consumer loans |
18,105 |
|
|
17,879 |
|
|
16,476 |
|
|
1 |
% |
|
10 |
% |
|
|
|
Credit card |
1,659 |
|
|
1,694 |
|
|
1,627 |
|
|
(2 |
)% |
|
2 |
% |
|
|
|
Solar energy installation loans |
4,516 |
|
|
4,486 |
|
|
4,221 |
|
|
1 |
% |
|
7 |
% |
|
|
|
Other consumer loans |
2,582 |
|
|
2,345 |
|
|
2,498 |
|
|
10 |
% |
|
3 |
% |
|
|
|
Total consumer loans |
$51,774 |
|
|
$48,833 |
|
|
$46,596 |
|
|
6 |
% |
|
11 |
% |
|
|
|
Total average portfolio loans and leases |
$157,632 |
|
|
$123,430 |
|
|
$121,272 |
|
|
28 |
% |
|
30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Average Loans and Leases Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Commercial loans and leases held for sale |
$85 |
|
|
$19 |
|
|
$64 |
|
|
347 |
% |
|
33 |
% |
|
|
|
Consumer loans held for sale |
566 |
|
|
698 |
|
|
428 |
|
|
(19 |
)% |
|
32 |
% |
|
|
|
Total average loans and leases held for sale |
$651 |
|
|
$717 |
|
|
$492 |
|
|
(9 |
)% |
|
32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Total average loans and leases |
$158,283 |
|
|
$124,147 |
|
|
$121,764 |
|
|
27 |
% |
|
30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Securities (taxable and tax-exempt) |
$59,950 |
|
|
$52,512 |
|
|
$56,598 |
|
|
14 |
% |
|
6 |
% |
|
|
|
Other short-term investments |
19,728 |
|
|
17,485 |
|
|
14,446 |
|
|
13 |
% |
|
37 |
% |
|
|
|
Total average interest-earning assets |
$237,961 |
|
|
$194,144 |
|
|
$192,808 |
|
|
23 |
% |
|
23 |
% |
|
Compared to the prior quarter, total average portfolio loans and leases of $158 billion increased 28% and average commercial portfolio loans and leases of $106 billion increased 42%. Compared to the year-ago quarter, total average portfolio loans and leases increased 30% and average commercial portfolio loans and leases increased 42%. In each comparison the growth was primarily driven by commercial loans and leases acquired from Comerica.
Compared to the prior quarter, average consumer portfolio loans of $52 billion increased 6%. On a year-over-year basis, average consumer portfolio loans increased 11%. Growth in both periods primarily reflected consumer loans acquired from Comerica, with additional growth due to strong production in indirect secured consumer loans.
Average securities (taxable and tax-exempt; amortized cost) of $60 billion in the current quarter increased 14% compared to the prior quarter and 6% compared to the year-ago quarter. Growth in both periods primarily reflected securities acquired from Comerica. Average other short-term investments (including interest-bearing cash) of $20 billion in the current quarter increased 13% compared to the prior quarter and increased 37% compared to the year-ago quarter.
|
|
End of Period Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
($ in millions) |
As of |
|
|
% Change |
|
||||||||||
|
|
|
March |
|
December |
|
March |
|
|
|
|
|
|||||
|
|
|
2026 |
|
2025 |
|
2025 |
|
Seq |
|
Yr/Yr |
|
|||||
|
|
End of Period Portfolio Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Total commercial loans and leases |
$122,859 |
|
|
$73,562 |
|
|
$75,137 |
|
|
67 |
% |
|
64 |
% |
|
|
|
Total consumer loans |
53,391 |
|
|
49,089 |
|
|
47,054 |
|
|
9 |
% |
|
13 |
% |
|
|
|
Total portfolio loans and leases |
$176,250 |
|
|
$122,651 |
|
|
$122,191 |
|
|
44 |
% |
|
44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
End of Period Loans and Leases Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Total loans and leases held for sale |
$1,365 |
|
|
$733 |
|
|
$473 |
|
|
86 |
% |
|
189 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Total loans and leases |
$177,615 |
|
|
$123,384 |
|
|
$122,664 |
|
|
44 |
% |
|
45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Securities (taxable and tax-exempt) |
$67,823 |
|
|
$51,961 |
|
|
$56,323 |
|
|
31 |
% |
|
20 |
% |
|
|
|
Other short-term investments |
17,456 |
|
|
18,876 |
|
|
14,965 |
|
|
(8 |
)% |
|
17 |
% |
|
|
|
Total interest-earning assets |
$262,894 |
|
|
$194,221 |
|
|
$193,952 |
|
|
35 |
% |
|
36 |
% |
|
Period-end commercial portfolio loans and leases of $123 billion increased 67% and 64% compared to the prior and year-ago quarters, respectively. Growth in both comparisons primarily reflecting $46.5 billion of commercial loans and leases acquired from Comerica. Strong loan production and a rebound in line utilization also contributed to quarterly growth.
Period-end consumer portfolio loans of $53 billion increased 9% compared to the prior quarter and 13% compared to the year-ago quarter, both primarily driven by $4.1 billion of consumer loans acquired from Comerica.
Total period-end securities (taxable and tax-exempt; amortized cost) of $68 billion in the current quarter increased 31% compared to the prior quarter and increased 20% compared to the year-ago quarter. Securities growth in the quarter included $11.2 billion acquired from Comerica. Period-end other short-term investments of approximately $17 billion decreased 8% compared to the prior quarter and increased 17% compared to the year-ago quarter.
|
Average Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||||
|
|
|
March |
|
December |
|
March |
|
|
|
|
|
|||||
|
|
|
2026 |
|
2025 |
|
2025 |
|
Seq |
|
Yr/Yr |
|
|||||
|
|
Average Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Demand |
$55,770 |
|
|
$41,771 |
|
|
$39,788 |
|
|
34 |
% |
|
40 |
% |
|
|
|
Interest checking |
67,369 |
|
|
58,612 |
|
|
57,964 |
|
|
15 |
% |
|
16 |
% |
|
|
|
Savings |
17,546 |
|
|
16,103 |
|
|
17,226 |
|
|
9 |
% |
|
2 |
% |
|
|
|
Money market |
54,219 |
|
|
39,409 |
|
|
36,453 |
|
|
38 |
% |
|
49 |
% |
|
|
|
Total transaction deposits |
$194,904 |
|
|
$155,895 |
|
|
$151,431 |
|
|
25 |
% |
|
29 |
% |
|
|
|
CDs $250,000 or less |
11,641 |
|
|
10,541 |
|
|
10,380 |
|
|
10 |
% |
|
12 |
% |
|
|
|
Total core deposits |
$206,545 |
|
|
$166,436 |
|
|
$161,811 |
|
|
24 |
% |
|
28 |
% |
|
|
|
CDs over $250,0001 |
2,807 |
|
|
1,948 |
|
|
2,346 |
|
|
44 |
% |
|
20 |
% |
|
|
|
Total average deposits |
$209,352 |
|
|
$168,384 |
|
|
$164,157 |
|
|
24 |
% |
|
28 |
% |
|
|
|
1CDs over $250,000 includes $0.4BN, $0.8BN, and $1.3BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 3/31/26, 12/31/25, and 3/31/25, respectively. |
|
||||||||||||||
Total average deposits of $209 billion increased 24% compared to the prior quarter and period-end total deposits of $234 billion increased 36%. Compared to the year-ago quarter, total average deposits increased 28% and period-end total deposits increased 41%. In both comparisons the increase reflects $65.2 billion of deposits acquired from Comerica. Growth in high quality, low-cost deposits remains a key strategic priority to further enhance the deposit base.
The period-end portfolio loan-to-core deposit ratio was 76% in the current quarter, compared to 72% in the prior quarter and 75% in the year-ago quarter.
|
Average Wholesale Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||||
|
|
|
March |
|
December |
|
March |
|
|
|
|
|
|||||
|
|
|
2026 |
|
2025 |
|
2025 |
|
Seq |
|
Yr/Yr |
|
|||||
|
|
Average Wholesale Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
CDs over $250,0001 |
$2,807 |
|
|
$1,948 |
|
|
$2,346 |
|
|
44 |
% |
|
20 |
% |
|
|
|
Federal funds purchased |
178 |
|
|
204 |
|
|
194 |
|
|
(13 |
)% |
|
(8 |
)% |
|
|
|
Securities sold under repurchase agreements |
322 |
|
|
365 |
|
|
286 |
|
|
(12 |
)% |
|
13 |
% |
|
|
|
FHLB advances |
99 |
|
|
2,552 |
|
|
4,767 |
|
|
(96 |
)% |
|
(98 |
)% |
|
|
|
Derivative collateral and other secured borrowings |
83 |
|
|
84 |
|
|
84 |
|
|
(1 |
)% |
|
(1 |
)% |
|
|
|
Long-term debt |
18,062 |
|
|
13,700 |
|
|
14,585 |
|
|
32 |
% |
|
24 |
% |
|
|
|
Total average wholesale funding |
$21,551 |
|
|
$18,853 |
|
|
$22,262 |
|
|
14 |
% |
|
(3 |
)% |
|
|
|
1CDs over $250,000 includes $0.4BN, $0.8BN, and $1.3BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 3/31/26, 12/31/25, and 3/31/25, respectively. |
|
||||||||||||||
Average wholesale funding of $22 billion increased 14% compared to the prior quarter, driven by an increase in long-term debt reflecting the $5.5 billion acquired from Comerica and the $2 billion issuance in January 2026, partially offset by a decrease in FHLB advances. The 3% decrease in average wholesale funding compared to the year-ago quarter was primarily attributable to a decrease in FHLB advances, partially offset by an increase in long-term debt.
|
Credit Quality Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
As of and For the Three Months Ended |
|||||||||||||
|
|
March |
|
December |
|
September |
|
June |
|
March |
|||||
|
|
2026 |
|
2025 |
|
2025 |
|
2025 |
|
2025 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual portfolio loans and leases (NPLs) |
$960 |
|
|
$767 |
|
|
$768 |
|
|
$853 |
|
|
$966 |
|
|
Repossessed property |
11 |
|
|
11 |
|
|
12 |
|
|
8 |
|
|
9 |
|
|
OREO |
28 |
|
|
19 |
|
|
21 |
|
|
25 |
|
|
21 |
|
|
Total nonperforming portfolio loans and leases and OREO (NPAs) |
$999 |
|
|
$797 |
|
|
$801 |
|
|
$886 |
|
|
$996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPL ratio(f) |
0.54% |
|
|
0.62% |
|
|
0.62% |
|
|
0.70% |
|
|
0.79% |
|
|
NPA ratio(c) |
0.57% |
|
|
0.65% |
|
|
0.65% |
|
|
0.72% |
|
|
0.81% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio loans and leases 30-89 days past due (accrual) |
$683 |
|
|
$360 |
|
|
$348 |
|
|
$277 |
|
|
$385 |
|
|
Portfolio loans and leases 90 days past due (accrual) |
49 |
|
|
30 |
|
|
29 |
|
|
34 |
|
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-89 days past due as a % of portfolio loans and leases |
0.39% |
|
|
0.29% |
|
|
0.28% |
|
|
0.23% |
|
|
0.31% |
|
|
90 days past due as a % of portfolio loans and leases |
0.03% |
|
|
0.02% |
|
|
0.02% |
|
|
0.03% |
|
|
0.03% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses (ALLL), beginning |
$2,253 |
|
|
$2,265 |
|
|
$2,412 |
|
|
$2,384 |
|
|
$2,352 |
|
|
Total net losses charged-off |
(144) |
|
|
(125) |
|
|
(339) |
|
|
(139) |
|
|
(136) |
|
|
Provision for loan and lease losses |
152 |
|
|
113 |
|
|
192 |
|
|
167 |
|
|
168 |
|
|
Allowance on PCD loans and leases at acquisition |
180 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Allowance on PSLs at acquisition |
481 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
ALLL, ending |
$2,922 |
|
|
$2,253 |
|
|
$2,265 |
|
|
$2,412 |
|
|
$2,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for unfunded commitments, beginning |
$157 |
|
|
$151 |
|
|
$146 |
|
|
$140 |
|
|
$134 |
|
|
Provision for the reserve for unfunded commitments |
75 |
|
|
6 |
|
|
5 |
|
|
6 |
|
|
6 |
|
|
Reserve for unfunded commitments, ending |
$232 |
|
|
$157 |
|
|
$151 |
|
|
$146 |
|
|
$140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for credit losses (ACL) |
$3,154 |
|
|
$2,410 |
|
|
$2,416 |
|
|
$2,558 |
|
|
$2,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of portfolio loans and leases |
1.79% |
|
|
1.96% |
|
|
1.96% |
|
|
2.09% |
|
|
2.07% |
|
|
As a % of nonperforming portfolio loans and leases |
328% |
|
|
314% |
|
|
314% |
|
|
300% |
|
|
261% |
|
|
As a % of nonperforming portfolio assets |
316% |
|
|
302% |
|
|
302% |
|
|
289% |
|
|
253% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLL as a % of portfolio loans and leases |
1.66% |
|
|
1.84% |
|
|
1.84% |
|
|
1.97% |
|
|
1.95% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total losses charged-off |
$(187) |
|
|
$(177) |
|
|
$(382) |
|
|
$(194) |
|
|
$(173) |
|
|
Total recoveries of losses previously charged-off |
43 |
|
|
52 |
|
|
43 |
|
|
55 |
|
|
37 |
|
|
Total net losses charged-off1 |
$(144) |
|
|
$(125) |
|
|
$(339) |
|
|
$(139) |
|
|
$(136) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-off ratio (NCO ratio)(b)1 |
0.37% |
|
|
0.40% |
|
|
1.09% |
|
|
0.45% |
|
|
0.46% |
|
|
Commercial NCO ratio |
0.26% |
|
|
0.27% |
|
|
1.46% |
|
|
0.38% |
|
|
0.35% |
|
|
Consumer NCO ratio |
0.58% |
|
|
0.59% |
|
|
0.52% |
|
|
0.56% |
|
|
0.63% |
|
|
1Excludes net charge-offs of $21 million which were taken immediately at the time of merger. |
|
|
|
|
|
|
|
|
||||||
The provision for credit losses totaled $227 million in the current quarter and included approximately $83 million of provision expense to establish part of the Day 1 allowance for Comerica. The total Day 1 allowance for credit losses established due to the Comerica acquisition was $744 million, with the allowance primarily established through purchase accounting. The ACL ratio represented 1.79% of total portfolio loans and leases at quarter end, down 17 bps from the prior quarter and down 28 bps from the year-ago quarter. The ACL coverage ratio increased to 328% of nonperforming portfolio loans and leases and 316% of nonperforming portfolio assets.
Net charge-offs totaled $144 million in the current quarter, up $19 million from the prior quarter and the NCO ratio decreased 3 bps to 0.
Contacts
Investor contact: Matt Curoe (513) 534-2345 | Media contact: Jennifer Hendricks Sullivan (614) 744-7693
