News Details

CINCINNATI--(BUSINESS WIRE)-- Fifth Third Bancorp (NASDAQ: FITB):

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.

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.

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 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 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 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 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.

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.

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.

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 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.

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 0.37%. Commercial net charge-offs were $69 million, with a commercial NCO ratio of 0.26%, down 1 bp from the prior quarter. Consumer net charge-offs were $75 million, with a consumer NCO ratio of 0.58%, down 1 bp from the prior quarter.

Compared to the year-ago quarter, net charge-offs increased $8 million and the NCO ratio decreased 9 bps. The commercial NCO ratio decreased 9 bps, and the consumer NCO ratio decreased 5 bps compared to the prior year.

Nonperforming portfolio loans and leases totaled $960 million in the current quarter, representing an NPL ratio of 0.54%, compared to 0.62% in the prior quarter and 0.79% in the year-ago quarter. Nonperforming portfolio assets totaled $999 million in the current quarter, resulting in an NPA ratio of 0.57%, compared to 0.65% in the prior quarter and 0.81% in the year-ago quarter.

CET1 capital ratio of 9.96% decreased 85 bps sequentially, primarily reflecting capital impacts from the Comerica acquisition, including approximately $12.3 billion of common equity issued as consideration for the merger, $6.2 billion of goodwill and intangibles, $73 billion of risk-weighted assets, and $740 million of pre-tax merger-related impacts. There was no share repurchase activity in the first quarter of 2026.

Tax Rate

The effective tax rate for the quarter was 20.1% compared with 19.8% in the prior quarter and 21.2% in the year-ago quarter.

Conference Call

Fifth Third will host a conference call to discuss these financial results at 9:00 a.m. (Eastern Time) today. This conference call will be webcast live and may be accessed through the Fifth Third Investor Relations website at www.53.com (click on “About Us” then “Investor Relations”). Those unable to listen to the live webcast may access a webcast replay through the Fifth Third Investor Relations website at the same web address, which will be available for 30 days.

Corporate Profile

Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people, and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere's World’s Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.

Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank and its common stock is traded on the NASDAQ® Global Select Market under the symbol “FITB.” Investor information and press releases can be viewed at www.53.com.

Earnings Release End Notes

FORWARD-LOOKING STATEMENTS

This release contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. All statements other than statements of historical fact are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions or business. They usually can be identified by the use of forward-looking language such as “will likely result,” “may,” “are expected to,” “is anticipated,” “potential,” “estimate,” “forecast,” “projected,” “intends to,” or may include other similar words or phrases such as “believes,” “plans,” “trend,” “objective,” “continue,” “remain,” or similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K as updated by our filings with the U.S. Securities and Exchange Commission (“SEC”).

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) deteriorating credit quality; (2) loan concentration by location or industry of borrowers or collateral; (3) any instability or disruption in the financial system, including those caused by actual or perceived issues affecting the soundness of other financial institutions or market participants; (4) inadequate sources of funding or liquidity; (5) unfavorable actions of rating agencies; (6) inability to maintain or grow deposits; (7) limitations on the ability to receive dividends from subsidiaries; (8) cyber-security risks; (9) Fifth Third’s ability to secure confidential information and deliver products and services through the use of computer systems and telecommunications networks; (10) failures by third-party service providers; (11) inability to manage strategic initiatives and/or organizational changes; (12) inability to implement technology system enhancements, including the use of artificial intelligence; (13) failure of internal controls and other risk management programs; (14) losses related to fraud, theft, misappropriation or violence; (15) inability to attract and retain skilled personnel; (16) adverse impacts of government regulation; (17) governmental or regulatory changes or other actions; (18) failures to meet applicable capital requirements; (19) regulatory objections to Fifth Third’s capital plan; (20) regulation of Fifth Third’s derivatives activities; (21) deposit insurance premiums; (22) assessments for the orderly liquidation fund; (23) weakness in the national or local economies; (24) global political and economic uncertainty or negative actions; (25) changes in interest rates and the effects of inflation; (26) changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs; (27) changes and trends in capital markets; (28) fluctuation of Fifth Third’s stock price; (29) volatility in mortgage banking revenue; (30) litigation, investigations, and enforcement proceedings; (31) breaches of contractual covenants, representations and warranties; (32) competition and changes in the financial services industry; (33) potential impacts of the adoption of real-time payment networks; (34) changing retail distribution strategies, customer preferences and behavior; (35) difficulties in identifying, acquiring or integrating suitable strategic partnerships, investments or acquisitions; (36) potential dilution from future acquisitions; (37) loss of income and/or difficulties encountered in the sale and separation of businesses, investments or other assets; (38) results of investments or acquired entities; (39) changes in accounting standards or interpretation or declines in the value of Fifth Third’s goodwill or other intangible assets; (40) inaccuracies or other failures from the use of models; (41) effects of critical accounting policies and judgments or the use of inaccurate estimates; (42) weather-related events, other natural disasters, or health emergencies (including pandemics); (43) the impact of reputational risk created by these or other developments on such matters as business generation and retention, funding and liquidity; (44) changes in law or requirements imposed by Fifth Third’s regulators impacting our capital actions, including dividend payments and stock repurchases; (45) Fifth Third's ability to meet its environmental and/or social targets, goals and commitments; and (46) risks relating to the merger with Comerica Incorporated, including Fifth Third’s inability to realize the anticipated benefits of the merger and potential disruption to Fifth Third’s business resulting from post-merger integration.

You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or “SEC,” for further information on other factors, which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein.

Quarterly Financial Review for March 31, 2026

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