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Item 2 — Management's Discussion and Analysis
Fifth Third Bancorp · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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The following is Management’s Discussion and Analysis of Financial Condition and Results of Operations of certain significant factors that have affected Fifth Third Bancorp’s (the “Bancorp” or “Fifth Third”) financial condition and results of operations during the periods included in the Condensed Consolidated Financial Statements, which are a part of this filing. Reference to the Bancorp incorporates the parent holding company and all consolidated subsidiaries. The Bancorp’s banking subsidiary is referred to as the Bank.
OVERVIEW
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. At June 30, 2026, the Bancorp had $300 billion in assets and operated 1,500 full-service banking centers and 2,648 Fifth Third ATMs in fifteen states throughout its retail footprint. The Bancorp reports on three business segments: Commercial Banking, Consumer and Small Business Banking and Wealth and Asset Management.
This overview of MD&A highlights selected information in the financial results of the Bancorp and may not contain all of the information that is important to you. For a more complete understanding of trends, events, commitments, uncertainties, liquidity, capital resources and critical accounting policies and estimates, you should carefully read this entire document as well as the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025. Each of these items could have an impact on the Bancorp’s financial condition, results of operations and cash flows. In addition, refer to the Glossary of Abbreviations and Acronyms in this report for a list of terms included as a tool for the reader of this Quarterly Report on Form 10-Q. The abbreviations and acronyms identified therein are used throughout this MD&A, as well as the Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements.
Net interest income, net interest margin, net interest rate spread and the efficiency ratio are presented in MD&A on an FTE basis. The FTE basis adjusts for the tax-favored status of income from certain loans and leases and securities held by the Bancorp that are not taxable for federal income tax purposes. The Bancorp believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison between taxable and non-taxable amounts. The FTE basis for presenting net interest income is a non-GAAP measure. For further information, refer to the Non-GAAP Financial Measures section of MD&A.
The Bancorp’s revenues are dependent on both net interest income and noninterest income. For both the three and six months ended June 30, 2026, net interest income on an FTE basis and noninterest income provided 68% and 32% of total revenue, respectively. The Bancorp derives the majority of its revenues within the U.S. from customers domiciled in the U.S. Changes in interest rates, credit quality, economic trends and the capital markets are primary factors that drive the performance of the Bancorp. As discussed later in the Risk Management section of MD&A, risk identification, measurement, monitoring, control and reporting are important to the management of risk and to the financial performance and capital strength of the Bancorp.
Net interest income is the difference between interest income earned on assets such as loans, leases and securities, and interest expense incurred on liabilities such as deposits, short-term borrowings and long-term debt. Net interest income is affected by the general level of interest rates, the relative level of short-term and long-term interest rates, changes in interest rates and changes in the amount and composition of interest-earning assets and interest-bearing liabilities.
Noninterest income is derived from wealth and asset management revenue, commercial payments revenue, consumer banking revenue, capital markets fees, commercial banking revenue, mortgage banking net revenue, other noninterest income and net securities gains or losses. Noninterest expense includes compensation and benefits, technology and communications, net occupancy expense, card and processing expense, equipment expense, marketing expense, loan and lease expense and other noninterest expense.
Acquisition of Comerica Incorporated
On February 1, 2026, Fifth Third Bancorp closed the merger with Comerica Incorporated (“Comerica”) in an all-stock transaction valued at approximately $12.7 billion. Under the terms of the merger agreement, each outstanding share of Comerica’s common stock was converted into the right to receive 1.8663 shares of Fifth Third Bancorp common stock and each outstanding share of Comerica’s preferred stock was converted into the right to receive one share of a newly created series of preferred stock with comparable terms issued by the Bancorp.
On February 1, 2026, the Bancorp issued 16,000,000 depository shares, representing 400,000 shares of 6.875% fixed-rate reset non-cumulative perpetual preferred stock, Series M to the holders of Comerica’s 6.875% fixed-rate reset non-cumulative perpetual preferred stock, Series B that were outstanding on January 30, 2026. Each Series M share has a $1,000 liquidation preference and accrues dividends on a non-cumulative quarterly basis, initially beginning on January 1, 2026 with a first dividend payment date of April 1, 2026. Subject to any required regulatory approval, the Bancorp may redeem the Series M preferred shares at its option, in whole or in part, on any dividend payment date on or after October 1, 2030 and may redeem, in whole but not in part, within 90 days following a regulatory capital event. The Series M preferred shares are not convertible into Bancorp common shares or any other securities.
The Bancorp’s financial condition and results of operations as of, and for the three and six months ended, June 30, 2026, were impacted by activity attributable to the Comerica acquisition and the integration of acquired operations, which affects the comparability of results between periods presented herein.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Refer to Note 4 of the Notes to Condensed Consolidated Financial Statements for more information.
Senior Notes Transactions
On January 29, 2026, the Bancorp issued and sold $1.0 billion of fixed-rate/floating-rate senior notes which will mature on April 29, 2032. The senior notes will bear interest at a rate of 4.566% per annum to, but excluding, April 29, 2031. From, and including, April 29, 2031, to, but excluding, the maturity date, the senior notes will bear interest at a rate of compounded SOFR plus 0.95%.
On January 29, 2026, the Bancorp issued and sold $1.0 billion of fixed-rate/floating-rate senior notes which will mature on January 29, 2037. The senior notes will bear interest at a rate of 5.141% per annum to, but excluding, January 29, 2036. From, and including, January 29, 2036 to, but excluding, the maturity date, the senior notes will bear interest at a rate of compounded SOFR plus 1.24%.
On June 10, 2026, the Bancorp completed the previously announced exchange offer with respect to the $550 million of 4.00% fixed-rate senior notes due February 1, 2029, originally issued by Comerica Incorporated and assumed by Fifth Third Financial Corporation, as successor by merger, pursuant to which approximately $335 million of such notes were exchanged for new senior notes issued by the Bancorp and cash consideration. The new senior notes have substantially identical terms to the prior notes including the same interest rate of 4.00% and maturity date of February 1, 2029.
On June 10, 2026, the Bancorp completed the previously announced exchange offer with respect to the $1.0 billion of fixed-rate/floating-rate senior notes due January 30, 2030, originally issued by Comerica Incorporated and assumed by Fifth Third Financial Corporation, as successor by merger, pursuant to which approximately $938 million of such notes were exchanged for new senior notes issued by the Bancorp and cash consideration. The new senior notes have substantially identical terms to the prior notes including the same interest rate of 5.982% and maturity date of January 30, 2030.
Refer to Note 14 of the Notes to Condensed Consolidated Financial Statements for more information.
Category III Transition
In the third quarter of 2026, the Bancorp will begin the transition from Category IV to Category III compliance standards. Under Category III standards, the Bancorp will be subject to additional regulatory requirements and oversight, including enhanced liquidity monitoring through compliance with the liquidity coverage ratio and net stable funding ratio, while additional reporting requirements including compliance with single counterparty credit limits will need to be met. The Bancorp will continue to be required to develop and maintain an annual capital plan, which must be approved by the Board of Directors; however, as a Category III institution, it will transition to annual supervisory stress testing, including the recalibration of its stress capital buffer, from the Category IV biennial requirement.
Proposed Updates to Regulatory Requirements for Capital
On March 19, 2026, the U.S. banking agencies issued notices of proposed rulemaking to revise the U.S. regulatory capital framework to finalize the post-crisis Basel III reforms. Comments were due by June 18, 2026 with final implementation expected to include a multi-year transition. The Bancorp and the Bank would not be required to adopt the new expanded risk‑based approach under the proposed rules, although the proposed rules would permit an election to adopt the expanded risk‑based approach. However, if implemented as proposed, the rules would impact how the Bancorp and the Bank calculate capital requirements. Effective dates for the proposed rules were not included in the proposal. The Bancorp is in the process of evaluating this proposed rulemaking and assessing its potential impact.
Key Performance Indicators
The Bancorp, as a banking institution, utilizes various key indicators of financial condition and operating results in managing and monitoring the performance of the business. In addition to traditional financial metrics, such as revenue and expense trends, the Bancorp monitors other financial measures that assist in evaluating growth trends, capital and liquidity strength and operational efficiencies. The Bancorp analyzes these key performance indicators against its past performance, its forecasted performance and with the performance of its peer banking institutions. These indicators may change from time to time as the operating environment and businesses change. There have been no material changes made during the six months ended June 30, 2026 to the Bancorp’s key performance indicators. Refer to the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025 for more information.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
TABLE 1: Earnings Summary
For the three months ended June 30, % For the six months ended June 30, %
($ in millions, except for per share data) 2026 2025 Change 2026 2025 Change
Income Statement Data
Net interest income (U.S. GAAP) $ 2,215 1,495 48 $ 4,149 2,932 42
Net interest income (FTE)(a)(b) 2,220 1,500 48 4,159 2,942 41
Noninterest income 1,059 750 41 1,954 1,444 35
Total revenue (FTE)(a)(b) 3,279 2,250 46 6,113 4,386 39
Provision for credit losses 129 173 (25) 356 347 3
Noninterest expense 2,109 1,264 67 4,504 2,568 75
Net income 801 628 28 966 1,142 (15)
Dividends on preferred stock 38 37 3 75 73 3
Net income available to common shareholders 763 591 29 891 1,069 (17)
Common Share Data
Earnings per share - basic $ 0.84 0.88 (5) $ 1.03 1.59 (35)
Earnings per share - diluted 0.83 0.88 (6) 1.02 1.58 (35)
Cash dividends declared per common share 0.40 0.37 8 0.80 0.74 8
Book value per share 35.63 28.47 25 35.63 28.47 25
Market value per share 56.37 41.13 37 56.37 41.13 37
Financial Ratios
Return on average assets 1.08 % 1.20 (10) 0.69 % 1.09 (37)
Return on average common equity 9.5 12.8 (26) 6.0 11.8 (49)
Return on average tangible common equity(b) 15.6 17.6 (11) 10.0 16.5 (39)
Dividend payout 47.6 42.0 13 77.7 46.5 67
Credit Quality
Net losses charged-off as a percent of average portfolio loans and leases (annualized) 0.30 % 0.45 (33) 0.33 % 0.45 (27)
ALLL as a percent of portfolio loans and leases 1.63 1.97 (17) 1.63 1.97 (17)
ACL as a percent of portfolio loans and leases 1.76 2.09 (16) 1.76 2.09 (16)
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO 0.60 0.72 (17) 0.60 0.72 (17)
Regulatory Capital Ratios
CET1 risk-based capital 9.93 % 10.58 (6) 9.93 % 10.58 (6)
Tier 1 risk-based capital 10.81 11.85 (9) 10.81 11.85 (9)
Total risk-based capital 12.50 13.77 (9) 12.50 13.77 (9)
Leverage 9.20 9.42 (2) 9.20 9.42 (2)
(a)Amounts presented on an FTE basis. The FTE adjustments were $5 for both the three months ended June 30, 2026 and 2025 and $10 for both the six months ended June 30, 2026 and 2025.
(b)This is a non-GAAP measure. For further information, refer to the Non-GAAP Financial Measures section of MD&A.
Earnings Summary
Net interest income on an FTE basis (non-GAAP) was $2.2 billion and $4.2 billion for the three and six months ended June 30, 2026, respectively, increasing $720 million and $1.2 billion compared to the same periods in the prior year. Net interest income for the three and six months ended June 30, 2026 reflected the impact of the Comerica acquisition, including $73.0 billion of interest-earning assets acquired as well as $48.2 billion of interest-bearing liabilities and $24.9 billion of noninterest-bearing liabilities assumed on February 1, 2026. Net interest income for the three and six months ended June 30, 2026 was positively impacted by higher average balances of interest-earning assets primarily driven by the Comerica acquisition, lower funding costs due to the benefit of lower short-term market rates and repricing of fixed-rate assets to higher yields, including the reinvestment of cash flows from average taxable securities and securities repositioning during the second quarter of 2026. These positive impacts were partially offset by increases in interest expense primarily due to higher average balances of interest-bearing core deposits and long-term debt primarily driven by the Comerica acquisition and lower yields on average loans and leases and average other short-term investments driven by lower short-term market rates. The increases in the average balances of long-term debt for both the three and six months ended June 30, 2026 also reflected the Bancorp’s January 2026 issuance of $2.0 billion of fixed-rate/floating-rate senior notes. Additionally, net interest income for the three and six months ended June 30, 2026 included $64 million and $102 million, respectively, of amortization and accretion of purchase accounting premiums and discounts related to the Comerica acquisition. Net interest margin on an FTE basis (non-GAAP) was 3.36% and 3.33% for the three and six months ended June 30, 2026, respectively, compared to 3.12% and 3.08% for the comparable periods in the prior year.
The provision for credit losses was $129 million and $356 million for the three and six months ended June 30, 2026, respectively, compared to $173 million and $347 million during the same periods in the prior year. Provision expense for the three months ended June 30, 2026 was
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
affected by certain factors that caused a decrease in the ACL from March 31, 2026, including improvement in the economic forecast used to calculate the ACL and improving credit characteristics within the portfolio, partially offset by higher period-end portfolio loan and lease balances. Provision expense for the six months ended June 30, 2026 was affected by factors which caused an increase in the ACL from December 31, 2025, including an increase in provision for the reserve for unfunded commitments recorded as part of the initial recognition of the reserve for unfunded commitments assumed in the Comerica acquisition, higher period-end portfolio loan and lease balances and a qualitative adjustment to reflect economic uncertainty associated with the ongoing U.S.-Iran conflict, partially offset by the improvement in the economic forecast used to calculate the ACL.
Noninterest income increased $309 million and $510 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by increases in commercial payments revenue, wealth and asset management revenue, capital markets fees and commercial banking revenue. These increases were impacted by activity attributable to the Comerica acquisition and the integration of acquired operations.
Noninterest expense increased $845 million and $1.9 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily due to increases in compensation and benefits expense, technology and communications expense, net occupancy expense, card and processing expense, marketing expense and other noninterest expense. These increases included direct merger-related expenses as well as activity attributable to the Comerica acquisition and the integration of acquired operations.
For more information on net interest income, provision for credit losses, noninterest income and noninterest expense, including impacts of the Comerica acquisition, refer to the Statements of Income Analysis section of MD&A.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
NON-GAAP FINANCIAL MEASURES
The following are non-GAAP financial measures which provide useful insight to the reader of the Condensed Consolidated Financial Statements but should be supplemental to primary U.S. GAAP measures and should not be read in isolation or relied upon as a substitute for the primary U.S. GAAP measures. The Bancorp encourages readers to consider the Condensed Consolidated Financial Statements in their entirety and not to rely on any single financial measure.
The FTE basis adjusts for the tax-favored status of income from certain loans and leases and securities held by the Bancorp that are not taxable for federal income tax purposes. The Bancorp believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison between taxable and non-taxable amounts.
The following table reconciles the non-GAAP financial measures of net interest income on an FTE basis, interest income on an FTE basis, net interest margin, net interest rate spread and the efficiency ratio to U.S. GAAP:
TABLE 2: Non-GAAP Financial Measures - Financial Measures and Ratios on an FTE basis
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 2026 2025
Net interest income (U.S. GAAP) $ 2,215 1,495 4,149 2,932
Add: FTE adjustment 5 5 10 10
Net interest income on an FTE basis (1) $ 2,220 1,500 4,159 2,942
Net interest income on an FTE basis (annualized) (2) 8,904 6,016 8,387 5,933
Interest income (U.S. GAAP) $ 3,372 2,484 6,344 4,917
Add: FTE adjustment 5 5 10 10
Interest income on an FTE basis $ 3,377 2,489 6,354 4,927
Interest income on an FTE basis (annualized) (3) 13,545 9,983 12,813 9,936
Interest expense (annualized) (4) $ 4,641 3,967 4,426 4,003
Noninterest income (5) 1,059 750 1,954 1,444
Noninterest expense (6) 2,109 1,264 4,504 2,568
Average interest-earning assets (7) 264,989 192,682 251,550 192,745
Average interest-bearing liabilities (8) 190,452 142,913 181,439 143,595
Ratios:
Net interest margin on an FTE basis (2) / (7) 3.36 % 3.12 3.33 3.08
Net interest rate spread on an FTE basis ((3) / (7)) - ((4) / (8)) 2.67 2.40 2.65 2.36
Efficiency ratio on an FTE basis (6) / ((1) + (5)) 64.3 56.2 73.7 58.6
The Bancorp believes return on average tangible common equity is an important measure for comparative purposes with other financial institutions, but is not defined under U.S. GAAP, and therefore is considered a non-GAAP financial measure. This measure is useful for evaluating the performance of a business as it calculates the return available to common shareholders without the impact of intangible assets and their related amortization.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
The following table reconciles the non-GAAP financial measure of return on average tangible common equity to U.S. GAAP:
TABLE 3: Non-GAAP Financial Measures - Return on Average Tangible Common Equity
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 2026 2025
Net income available to common shareholders (U.S. GAAP) $ 763 591 891 1,069
Add: Intangible amortization, net of tax 48 5 82 11
Tangible net income available to common shareholders $ 811 596 973 1,080
Tangible net income available to common shareholders (annualized) (1) 3,253 2,391 1,962 2,178
Average Bancorp shareholders’ equity (U.S. GAAP) $ 34,260 20,670 32,195 20,337
Less: Average preferred stock 2,182 2,116 2,111 2,116
Average goodwill 9,973 4,918 9,333 4,918
Average intangible assets 1,257 79 1,050 83
Average tangible common equity (2) $ 20,848 13,557 19,701 13,220
Return on average tangible common equity (1) / (2) 15.6 % 17.6 10.0 16.5
The Bancorp considers various measures when evaluating capital utilization and adequacy, including the tangible equity ratio and tangible common equity ratio, in addition to capital ratios defined by the U.S. banking agencies. These calculations are intended to complement the capital ratios defined by the U.S. banking agencies for both absolute and comparative purposes. As U.S. GAAP does not include capital ratio measures, the Bancorp believes there are no comparable U.S. GAAP financial measures to these ratios. These ratios are not formally defined by U.S. GAAP or codified in the federal banking regulations and, therefore, are considered to be non-GAAP financial measures.
The following table reconciles non-GAAP capital ratios to U.S. GAAP:
TABLE 4: Non-GAAP Financial Measures - Capital Ratios
As of ($ in millions) June 30, 2026 December 31, 2025
Total Bancorp shareholders’ equity (U.S. GAAP) $ 34,482 21,724
Less: Preferred stock 2,182 1,770
Goodwill 9,990 4,947
Intangible assets 1,253 69
Tangible common equity, including AOCI (1) $ 21,057 14,938
Less: AOCI (3,286) (3,110)
Tangible common equity, excluding AOCI (2) $ 24,343 18,048
Add: Preferred stock 2,182 1,770
Tangible equity (3) $ 26,525 19,818
Total assets (U.S. GAAP) $ 300,180 214,376
Less: Goodwill 9,990 4,947
Intangible assets 1,253 69
Tangible assets, including AOCI (4) $ 288,937 209,360
Less: AOCI, before tax (4,324) (4,092)
Tangible assets, excluding AOCI (5) $ 293,261 213,452
Ratios:
Tangible equity as a percentage of tangible assets (3) / (5) 9.04 % 9.28
Tangible common equity as a percentage of tangible assets, excluding AOCI (2) / (5) 8.30 8.46
Tangible common equity as a percentage of tangible assets, including AOCI (1) / (4) 7.29 7.14
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
RECENT ACCOUNTING STANDARDS
Note 3 of the Notes to Condensed Consolidated Financial Statements provides a discussion of the significant new accounting standard applicable to the Bancorp and the expected impact of significant accounting standards issued, but not yet required to be adopted.
CRITICAL ACCOUNTING POLICIES
The Bancorp’s Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP. Certain accounting policies require management to exercise judgment in determining methodologies, economic assumptions and estimates that may materially affect the Bancorp’s financial position, results of operations and cash flows. The Bancorp’s critical accounting policies include the accounting for the ALLL, reserve for unfunded commitments, valuation of residential mortgage servicing rights, goodwill, legal contingencies and fair value measurements. These accounting policies are discussed in detail in the Critical Accounting Policies section of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to the valuation techniques or models during the six months ended June 30, 2026.
STATEMENTS OF INCOME ANALYSIS
Net Interest Income
Net interest income is the interest earned on loans and leases (including yield-related fees), securities and other short-term investments less the interest incurred on core deposits and wholesale funding (including CDs over $250,000, federal funds purchased, other short-term borrowings and long-term debt). The net interest margin is calculated by dividing net interest income by average interest-earning assets. Net interest rate spread is the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities. Net interest margin is typically greater than net interest rate spread due to the interest income earned on those assets that are funded by noninterest-bearing liabilities, or free funding, such as demand deposits or shareholders’ equity.
Tables 5 and 6 present the components of net interest income, net interest margin and net interest rate spread for the three and six months ended June 30, 2026 and 2025, as well as the relative impact of changes in the average balance sheet and changes in interest rates on net interest income. Nonaccrual loans and leases and loans and leases held for sale have been included in the average loan and lease balances. Average outstanding securities balances are based on amortized cost with any unrealized gains or losses included in average other assets.
Net interest income on an FTE basis (non-GAAP) was $2.2 billion and $4.2 billion for the three and six months ended June 30, 2026, respectively, increasing $720 million and $1.2 billion compared to the same periods in the prior year. Net interest income for the three and six months ended June 30, 2026 reflected the impact of the Comerica acquisition, including $73.0 billion of interest-earning assets acquired as well as $48.2 billion of interest-bearing liabilities and $24.9 billion of noninterest-bearing liabilities assumed on February 1, 2026. Net interest income for the three and six months ended June 30, 2026 was positively impacted by higher average balances of interest-earning assets primarily driven by the Comerica acquisition, lower funding costs due to the benefit of lower short-term market rates and repricing of fixed-rate assets to higher yields, including the reinvestment of cash flows from average taxable securities and securities repositioning during the second quarter of 2026. These positive impacts were partially offset by increases in interest expense primarily due to higher average balances of interest-bearing core deposits and long-term debt primarily driven by the Comerica acquisition and lower yields on average loans and leases and average other short-term investments driven by lower short-term market rates. The increases in the average balances of long-term debt for both the three and six months ended June 30, 2026 also reflected the Bancorp’s January 2026 issuance of $2.0 billion of fixed-rate/floating-rate senior notes. Additionally, net interest income for the three and six months ended June 30, 2026 included $64 million and $102 million, respectively, of amortization and accretion of purchase accounting premiums and discounts related to the Comerica acquisition.
Net interest margin on an FTE basis (non-GAAP) was 3.36% and 3.33% for the three and six months ended June 30, 2026, respectively, compared to 3.12% and 3.08% for the same periods in the prior year. Net interest margin for the three and six months ended June 30, 2026 was positively impacted by the Comerica acquisition, primarily driven by the aforementioned amortization and accretion of purchase accounting premiums and discounts as well as the benefit of deposit mix shift.
Interest income on an FTE basis (non-GAAP) from loans and leases increased $726 million and $1.2 billion during the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by increases in the average balances of loans and leases, partially offset by decreases in yields on average commercial loans and leases associated with lower short-term market rates. Interest income on an FTE basis (non-GAAP) from securities and other short-term investments increased $162 million and $224 million during the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily due to increases in the average balances of taxable securities and other short-term investments.
Interest expense on average core deposits increased $157 million and $229 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily due to increases in the average balances of interest-bearing core deposits, partially offset by decreases in the cost of average interest-bearing core deposits to 211 bps and 212 bps for the three and six months ended June 30, 2026, respectively, from 236 bps and 237 bps for the three and six months ended June 30, 2025, respectively.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Interest expense on average wholesale funding increased $11 million for the three months ended June 30, 2026 compared to the same period in the prior year primarily due to an increase in the average balances of long-term debt, partially offset by a decrease in rates paid on average wholesale funding. Interest expense on average wholesale funding decreased $19 million for the six months ended June 30, 2026 compared to the same period in the prior year primarily due to a decrease in rates paid on average wholesale funding and a decrease in the average balances of FHLB advances, partially offset by an increase in the average balances of long-term debt. During the three and six months ended June 30, 2026, average wholesale funding represented 14% and 13% of average interest-bearing liabilities, respectively, compared to 16% for both the three and six months ended June 30, 2025. For more information on the Bancorp’s interest rate risk management, including estimated earnings sensitivity to changes in market interest rates, refer to the Interest Rate and Price Risk Management subsection of the Risk Management section of MD&A.
Average Balance Sheet
On an average basis, interest-earning assets increased $72.3 billion, or 38%, for the three months ended June 30, 2026 compared to the same period in the prior year primarily driven by the impact of the Comerica acquisition on February 1, 2026 which included the acquisition of $46.5 billion of commercial loans and leases, $4.1 billion of consumer loans, $11.3 billion of other short-term investments and $11.2 billion of securities.
On an average basis, interest-bearing liabilities increased $47.5 billion, or 33%, for the three months ended June 30, 2026 compared to the same period in the prior year primarily driven by the impact of the Comerica acquisition which included the assumption of $40.6 billion of interest-bearing core deposits and $5.5 billion of long-term debt. Average core deposits represented 77% of average total assets for both the three months ended June 30, 2026 and 2025.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
TABLE 5: Condensed Consolidated Average Balance Sheets and Analysis of Net Interest Income on an FTE Basis
For the three months ended June 30, 2026 June 30, 2025 Attribution of Change in Net Interest Income(a)
($ in millions) Average Balance Interest Earned/Paid Average Yield/ Rate Average Balance Interest Earned/Paid Average Yield/ Rate Volume Yield/ Rate Total
Assets:
Interest-earning assets:
Loans and leases:(b)
Commercial and industrial loans $ 85,260 1,253 5.90 % $ 54,109 847 6.28 % $ 461 (55) 406
Commercial mortgage loans 27,215 395 5.82 12,420 190 6.12 215 (10) 205
Commercial construction loans 8,504 138 6.50 5,810 104 7.17 44 (10) 34
Commercial leases 3,503 40 4.61 3,121 38 4.83 4 (2) 2
Total commercial loans and leases $ 124,482 1,826 5.89 % $ 75,460 1,179 6.26 % $ 724 (77) 647
Residential mortgage loans 20,362 211 4.16 18,156 180 3.98 23 8 31
Home equity 6,830 118 6.95 4,383 81 7.42 43 (6) 37
Indirect secured consumer loans 18,239 252 5.53 17,248 242 5.63 14 (4) 10
Credit card 1,646 56 13.69 1,659 60 14.33 (1) (3) (4)
Solar energy installation loans 4,384 87 7.93 4,268 86 8.10 3 (2) 1
Other consumer loans 2,764 60 8.66 2,483 56 9.09 7 (3) 4
Total consumer loans $ 54,225 784 5.80 % $ 48,197 705 5.87 % $ 89 (10) 79
Total loans and leases $ 178,707 2,610 5.86 % $ 123,657 1,884 6.11 % $ 813 (87) 726
Securities:
Taxable 66,532 589 3.55 54,896 450 3.29 101 38 139
Exempt from income taxes(b) 1,392 11 3.25 1,347 10 3.19 1 — 1
Other short-term investments 18,358 167 3.64 12,782 145 4.56 55 (33) 22
Total interest-earning assets $ 264,989 3,377 5.11 % $ 192,682 2,489 5.18 % $ 970 (82) 888
Cash and due from banks 3,307 2,437
Other assets 32,574 17,819
Allowance for loan and lease losses (2,922) (2,384)
Total assets $ 297,948 $ 210,554
Liabilities and Equity:
Interest-bearing liabilities:
Interest checking deposits $ 70,507 377 2.15 % $ 56,738 380 2.69 % $ 82 (85) (3)
Savings deposits 18,430 16 0.35 16,962 20 0.48 2 (6) (4)
Money market deposits 63,200 383 2.43 36,296 218 2.40 163 2 165
CDs $250,000 or less 12,403 91 2.94 10,494 92 3.52 15 (16) (1)
Total interest-bearing core deposits $ 164,540 867 2.11 % $ 120,490 710 2.36 % $ 262 (105) 157
CDs over $250,000 2,990 24 3.25 2,200 22 4.07 7 (5) 2
Federal funds purchased 160 2 3.65 206 2 4.39 — — —
Securities sold under repurchase agreements 444 2 1.69 353 1 1.16 — 1 1
FHLB advances 3,437 33 3.88 4,976 57 4.59 (16) (8) (24)
Derivative collateral and other borrowed money 64 1 7.25 89 1 5.61 — — —
Long-term debt 18,817 228 4.87 14,599 196 5.36 52 (20) 32
Total interest-bearing liabilities $ 190,452 1,157 2.44 % $ 142,913 989 2.78 % $ 305 (137) 168
Demand deposits 63,976 40,885
Other liabilities 9,260 6,086
Total liabilities $ 263,688 $ 189,884
Total equity $ 34,260 $ 20,670
Total liabilities and equity $ 297,948 $ 210,554
Net interest income (FTE)(c) $ 2,220 $ 1,500 $ 665 55 720
Net interest margin (FTE)(c) 3.36 % 3.12 %
Net interest rate spread (FTE)(c) 2.67 2.40
Interest-bearing liabilities to interest-earning assets 71.87 74.17
(a)Changes in interest not solely due to volume or yield/rate are allocated in proportion to the absolute dollar amount of change in volume and yield/rate.
(b)The FTE adjustments included in the above table were $5 for both the three months ended June 30, 2026 and 2025.
(c)This is a non-GAAP measure. For further information, refer to the Non-GAAP Financial Measures section of MD&A.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
TABLE 6: Condensed Consolidated Average Balance Sheets and Analysis of Net Interest Income on an FTE Basis
For the six months ended June 30, 2026 June 30, 2025 Attribution of Change in Net Interest Income(a)
($ in millions) Average Balance Interest Earned/Paid Average Yield/ Rate Average Balance Interest Earned/Paid Average Yield/ Rate Volume Yield/ Rate Total
Assets:
Interest-earning assets:
Loans and leases:(b)
Commercial and industrial loans $ 79,315 2,319 5.90 % $ 53,772 1,666 6.25 % $ 751 (98) 653
Commercial mortgage loans 24,625 712 5.83 12,404 372 6.05 354 (14) 340
Commercial construction loans 7,899 254 6.48 5,812 203 7.05 68 (17) 51
Commercial leases 3,426 80 4.73 3,115 74 4.81 7 (1) 6
Total commercial loans and leases $ 115,265 3,365 5.89 % $ 75,103 2,315 6.22 % $ 1,180 (130) 1,050
Residential mortgage loans 19,891 412 4.17 18,068 356 3.97 37 19 56
Home equity 6,449 223 6.98 4,303 160 7.49 75 (12) 63
Indirect secured consumer loans 18,172 499 5.53 16,864 469 5.60 36 (6) 30
Credit card 1,652 113 13.82 1,643 118 14.54 1 (6) (5)
Solar energy installation loans 4,449 178 8.05 4,245 170 8.06 8 — 8
Other consumer loans 2,674 115 8.71 2,490 114 9.23 8 (7) 1
Total consumer loans $ 53,287 1,540 5.83 % $ 47,613 1,387 5.87 % $ 165 (12) 153
Total loans and leases $ 168,552 4,905 5.87 % $ 122,716 3,702 6.08 % $ 1,345 (142) 1,203
Securities:
Taxable 62,581 1,082 3.49 55,050 892 3.27 128 62 190
Exempt from income taxes(b) 1,378 22 3.25 1,370 22 3.19 — — —
Other short-term investments 19,039 345 3.65 13,609 311 4.60 107 (73) 34
Total interest-earning assets $ 251,550 6,354 5.09 % $ 192,745 4,927 5.15 % $ 1,580 (153) 1,427
Cash and due from banks 3,187 2,413
Other assets 29,906 17,766
Allowance for loan and lease losses (2,804) (2,368)
Total assets $ 281,839 $ 210,556
Liabilities and Equity:
Interest-bearing liabilities:
Interest checking deposits $ 68,946 742 2.17 % $ 57,346 765 2.69 % $ 139 (162) (23)
Savings deposits 17,990 31 0.35 17,094 43 0.51 2 (14) (12)
Money market deposits 58,735 703 2.41 36,374 436 2.41 267 — 267
CDs $250,000 or less 12,024 181 3.04 10,438 184 3.53 25 (28) (3)
Total interest-bearing core deposits $ 157,695 1,657 2.12 % $ 121,252 1,428 2.37 % $ 433 (204) 229
CDs over $250,000 2,899 48 3.32 2,273 48 4.26 12 (12) —
Federal funds purchased 169 3 3.65 200 4 4.38 — (1) (1)
Securities sold under repurchase agreements 384 3 1.44 320 2 1.05 — 1 1
FHLB advances 1,777 34 3.89 4,872 111 4.60 (62) (15) (77)
Derivative collateral and other borrowed money 73 3 7.38 86 2 6.02 — 1 1
Long-term debt 18,442 447 4.90 14,592 390 5.37 94 (37) 57
Total interest-bearing liabilities $ 181,439 2,195 2.44 % $ 143,595 1,985 2.79 % $ 477 (267) 210
Demand deposits 59,896 40,339
Other liabilities 8,309 6,285
Total liabilities $ 249,644 $ 190,219
Total equity $ 32,195 $ 20,337
Total liabilities and equity $ 281,839 $ 210,556
Net interest income (FTE)(c) $ 4,159 $ 2,942 $ 1,103 114 1,217
Net interest margin (FTE)(c) 3.33 % 3.08 %
Net interest rate spread (FTE)(c) 2.65 2.36
Interest-bearing liabilities to interest-earning assets 72.13 74.50
(a)Changes in interest not solely due to volume or yield/rate are allocated in proportion to the absolute dollar amount of change in volume and yield/rate.
(b)The FTE adjustments included in the above table were $10 for both the six months ended June 30, 2026 and 2025.
(c)This is a non-GAAP measure. For further information, refer to the Non-GAAP Financial Measures section of MD&A.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Provision for Credit Losses
The Bancorp recognizes provision expense for expected credit losses within the loan and lease portfolio and the portfolio of unfunded commitments that is based on factors discussed in the Critical Accounting Policies section of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025.
The provision for credit losses was $129 million and $356 million for the three and six months ended June 30, 2026, respectively, compared to $173 million and $347 million during the same periods in the prior year. Provision expense for the three months ended June 30, 2026 was affected by certain factors that caused a decrease in the ACL from March 31, 2026, including improvement in the economic forecast used to calculate the ACL and improving credit characteristics within the portfolio, partially offset by higher period-end portfolio loan and lease balances. Provision expense for the six months ended June 30, 2026 was affected by factors which caused an increase in the ACL from December 31, 2025, including an increase in provision for the reserve for unfunded commitments recorded as part of the initial recognition of the reserve for unfunded commitments assumed in the Comerica acquisition, higher period-end portfolio loan and lease balances and a qualitative adjustment to reflect economic uncertainty associated with the ongoing U.S.-Iran conflict, partially offset by the improvement in the economic forecast used to calculate the ACL.
The ALLL increased $665 million from December 31, 2025 to $2.9 billion at June 30, 2026. This increase reflects the impact of the Comerica acquisition, including the initial recognition of allowances on PCD loans and leases of $179 million and on PSLs of $482 million as of the acquisition date. At June 30, 2026, the ALLL as a percent of portfolio loans and leases decreased to 1.63%, compared to 1.84% at December 31, 2025.
The reserve for unfunded commitments increased $73 million from December 31, 2025 to $230 million at June 30, 2026. This increase reflects the impact of the Comerica acquisition, which included approximately $75 million in reserves for unfunded commitments recognized on the acquisition date. At June 30, 2026, the ACL as a percent of portfolio loans and leases decreased to 1.76%, compared to 1.96% at December 31, 2025.
Refer to the Credit Risk Management subsection of the Risk Management section of MD&A as well as Note 7 of the Notes to Condensed Consolidated Financial Statements for more information on the provision for credit losses, including an analysis of loan and lease portfolio composition, nonperforming assets, net charge-offs and other factors considered by the Bancorp in assessing the credit quality of the loan and lease portfolio and determining the level of the ACL.
Noninterest Income
Noninterest income increased $309 million and $510 million for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025, which was impacted by activity attributable to the Comerica acquisition and the integration of acquired operations.
The following table presents the components of noninterest income:
TABLE 7: Components of Noninterest Income
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 % Change 2026 2025 % Change
Wealth and asset management revenue $ 256 166 54 $ 489 338 45
Commercial payments revenue 254 152 67 472 305 55
Consumer banking revenue 161 147 10 307 284 8
Capital markets fees 154 90 71 287 179 60
Commercial banking revenue 125 79 58 230 160 44
Mortgage banking net revenue 39 56 (30) 83 113 (27)
Other noninterest income 50 44 14 78 58 34
Securities gains, net 20 16 25 8 7 14
Total noninterest income $ 1,059 750 41 $ 1,954 1,444 35
Wealth and asset management revenue increased $90 million and $151 million for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025 primarily driven by increases in personal asset management revenue, brokerage income and institutional trust income. The Bancorp’s trust and registered investment advisory businesses had approximately $902 billion and $657 billion in total assets under care as of June 30, 2026 and 2025, respectively, and managed $128 billion and $73 billion in assets for individuals, corporations and not-for-profit organizations as of June 30, 2026 and 2025, respectively. These balances reflect the impact of the Comerica acquisition on February 1, 2026, which included $180 billion of assets under care and $43 billion of assets under management.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Commercial payments revenue increased $102 million and $167 million for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025 primarily driven by higher treasury management fees and merchant payment processing revenue from increased volume, as well as the impact of revenue from the Direct Express government prepaid card program.
Capital markets fees increased $64 million and $108 million for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025 primarily driven by increases in loan syndication revenue, revenue from commercial customer derivatives and merger and acquisition fees.
Commercial banking revenue increased $46 million and $70 million for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025 primarily driven by increases in business lending fees.
Mortgage banking net revenue decreased $17 million and $30 million for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025.
The following table presents the components of mortgage banking net revenue:
TABLE 8: Components of Mortgage Banking Net Revenue
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 2026 2025
Origination fees and gains on residential mortgage loan sales $ 21 19 44 34
Net residential mortgage servicing revenue:
Gross residential mortgage servicing fees 71 73 141 147
Net valuation adjustments on residential MSRs and free-standing derivatives purchased to economically hedge residential MSRs (53) (36) (102) (68)
Net residential mortgage servicing revenue 18 37 39 79
Total mortgage banking net revenue $ 39 56 83 113
Residential mortgage loan originations increased to $2.5 billion and $4.4 billion for the three and six months ended June 30, 2026, respectively, from $2.0 billion and $3.4 billion for the three and six months ended June 30, 2025, respectively, primarily driven by an increase in the number of retail sales personnel. The increase for the six months ended June 30, 2026 was also due to lower mortgage interest rates, which also drove an increase in correspondent channel volume. Origination fees and gains on loan sales increased $10 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily driven by higher volumes of saleable rate lock mortgage loan originations.
The following table presents the components of net valuation adjustments on the residential MSR portfolio and the impact of the Bancorp’s hedging strategy:
TABLE 9: Components of Net Valuation Adjustments on Residential MSRs
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 2026 2025
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the residential MSR portfolio $ (17) 13 (28) 32
Changes in fair value:
Due to changes in inputs or assumptions(a) 6 (8) 6 (25)
Other changes in fair value(b) (42) (41) (80) (75)
Net valuation adjustments on residential MSRs and free-standing derivatives purchased to economically hedge residential MSRs $ (53) (36) (102) (68)
(a)Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates.
(b)Primarily reflects changes due to realized cash flows and the passage of time.
Further detail on the valuation of residential MSRs can be found in Note 11 of the Notes to Condensed Consolidated Financial Statements. The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the valuation of the residential MSR portfolio. Refer to Note 12 of the Notes to Condensed Consolidated Financial Statements for more information on the free-standing derivatives used to economically hedge the residential MSR portfolio. In addition to the derivative positions used to economically hedge the residential MSR portfolio, the Bancorp acquires various securities as a component of its non-qualifying hedging strategy. Net losses and gains on these securities were immaterial for both the three and six months ended June 30, 2026 and 2025.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
At June 30, 2026 and 2025, the Bancorp serviced $85.9 billion and $91.2 billion, respectively, of residential mortgage loans for other investors.
Other noninterest income increased $20 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to a gain on the swap associated with the sale of Visa, Inc. Class B Shares and an increase in BOLI income, partially offset by impairment charges recognized on bank premises and equipment associated with the acquisition of Comerica and a decrease in equity method investment income. Refer to Note 21 of the Notes to Condensed Consolidated Financial Statements for additional information on the valuation of the swap associated with the sale of Visa, Inc. Class B Shares and impairment charges recognized on bank premises and equipment.
Net securities gains were $20 million and $8 million for the three and six months ended June 30, 2026, respectively, compared to $16 million and $7 million for the three and six months ended June 30, 2025, respectively. For more information, refer to Note 5 of the Notes to Condensed Consolidated Financial Statements.
Noninterest Expense
Noninterest expense increased $845 million and $1.9 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year, which was impacted by activity attributable to the Comerica acquisition and the integration of acquired operations.
The following table presents the components of noninterest expense:
TABLE 10: Components of Noninterest Expense
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 % Change 2026 2025 % Change
Compensation and benefits $ 1,129 698 62 $ 2,539 1,447 75
Technology and communications 250 126 98 453 250 81
Net occupancy expense 154 83 86 295 171 73
Card and processing expense 66 22 200 144 43 235
Equipment expense 60 41 46 115 82 40
Marketing expense 65 43 51 114 71 61
Loan and lease expense 53 36 47 95 66 44
Other noninterest expense 332 215 54 749 438 71
Total noninterest expense $ 2,109 1,264 67 $ 4,504 2,568 75
Efficiency ratio on an FTE basis(a) 64.3 % 56.2 73.7 58.6
(a)This is a non-GAAP measure. For further information, refer to the Non-GAAP Financial Measures section of MD&A.
The Bancorp incurred direct merger-related expenses associated with the Comerica acquisition. These expenses primarily related to employee retention and separation expenses, system conversions and other costs of integrating and conforming the acquired operations with those of the Bancorp. The following table provides a summary of the direct merger-related expenses recorded in noninterest expense:
TABLE 11: Comerica Merger-Related Items Included in Noninterest Expense
($ in millions) For the three months ended June 30, 2026 For the six months ended June 30, 2026
Compensation and benefits $ 110 537
Technology and communications 43 64
Net occupancy expense 29 53
Card and processing expense — 30
Equipment expense 5 9
Marketing expense 1 1
Other noninterest expense 5 133
Total $ 193 827
The Bancorp also incurred $10 million of merger-related expenses associated with the acquisition of a DUS business line during both the three and six months ended June 30, 2026.
Compensation and benefits expense increased $431 million and $1.1 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by aforementioned merger-related expenses, including employee retention
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
and separation expenses, as well as increases in base compensation, performance-based compensation and employee benefits expense. Full-time equivalent employees totaled 25,197 at June 30, 2026 compared to 18,690 at June 30, 2025.
Technology and communications expense increased $124 million and $203 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by the aforementioned merger-related expenses, as well as increased investments in strategic initiatives and technology modernization.
Net occupancy expense increased $71 million and $124 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by the aforementioned merger-related expenses, as well as increased expenses associated with the Bancorp’s continued expansion into the Southeast markets as well as into Texas and California.
Card and processing expense increased $44 million and $101 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by expenses associated with the Direct Express government prepaid card program. The increase for the six months ended June 30, 2026 also included the aforementioned merger-related expenses.
Marketing expense increased $22 million and $43 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily due to increased spend on customer acquisition activities.
The following table presents the components of other noninterest expense:
TABLE 12: Components of Other Noninterest Expense
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 2026 2025
Intangible amortization $ 63 7 108 15
FDIC insurance and other taxes 51 35 101 77
Professional service fees 26 13 98 25
Data processing 46 21 71 40
Travel 25 16 46 31
Losses and adjustments 19 17 44 33
Securities recordkeeping 14 14 38 28
Dues and subscriptions 19 16 37 33
Leasing business expense 19 18 36 36
Insurance 3 4 36 9
Net periodic pension benefit, excluding service cost (31) — (35) —
Other, net 78 54 169 111
Total other noninterest expense $ 332 215 749 438
Other noninterest expense increased $117 million and $311 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by increases in intangible amortization expense, FDIC insurance and other taxes and data processing expense attributable to the Comerica acquisition. The increase for the six months ended June 30, 2026 also included $133 million in merger-related expenses. These expenses primarily included professional service fees, including mergers and acquisitions advisory expense, insurance expense and expense related to retirement termination benefits associated with former employees of Comerica. The increases in other noninterest expense for the three and six months ended June 30, 2026 were partially offset by net periodic pension benefit, excluding service cost, primarily driven by the impact of defined benefit plans acquired from Comerica. For more information, refer to Note 18 of the Notes to Condensed Consolidated Financial Statements.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Applicable Income Taxes
The Bancorp’s income before income taxes, applicable income tax expense and effective tax rate are as follows:
TABLE 13: Applicable Income Taxes
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 2026 2025
Income before income taxes $ 1,036 808 1,243 1,461
Applicable income tax expense 235 180 277 319
Effective tax rate 22.7 % 22.2 22.3 21.8
Applicable income tax expense for all periods presented includes the benefits from tax-exempt income, tax-advantaged investments, and tax credits (and other related tax benefits), partially offset by the effect of proportional amortization of qualifying investments and certain nondeductible expenses. The tax credits are primarily associated with the Low-Income Housing Tax Credit program established under Section 42 of the IRC, the New Markets Tax Credit program established under Section 45D of the IRC, the Rehabilitation Investment Tax Credit program established under Section 47 of the IRC and the Research Credit program established under Section 41 of the IRC.
The effective tax rate increased to 22.7% and 22.3% for the three and six months ended June 30, 2026, respectively, compared to 22.2% and 21.8% for the same periods in the prior year, primarily due to higher nondeductible expenses related to the Comerica acquisition that would not be expected to affect the effective tax rate in future years.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
BALANCE SHEET ANALYSIS
Loans and Leases
The Bancorp classifies its commercial loans and leases based upon primary purpose and consumer loans based upon product or collateral. The following table presents the end of period components of loans and leases, including loans and leases held for sale:
TABLE 14: Components of Loans and Leases (including loans and leases held for sale)
As of ($ in millions) June 30, 2026 December 31, 2025
Commercial loans and leases:
Commercial and industrial loans $ 85,808 52,795
Commercial mortgage loans 27,228 12,257
Commercial construction loans 8,525 5,316
Commercial leases 3,490 3,269
Total commercial loans and leases $ 125,051 73,637
Consumer loans:
Residential mortgage loans 20,408 18,310
Home equity 6,929 4,846
Indirect secured consumer loans 18,186 17,964
Credit card 1,683 1,747
Solar energy installation loans 4,314 4,560
Other consumer loans 2,823 2,320
Total consumer loans $ 54,343 49,747
Total loans and leases $ 179,394 123,384
Total portfolio loans and leases (excluding loans and leases held for sale) $ 178,528 122,651
Total loans and leases, including loans and leases held for sale, increased $56.0 billion, or 45%, from December 31, 2025 primarily driven by the Comerica acquisition as the Bancorp acquired commercial and consumer loans and leases of $50.5 billion at acquisition. Table 15 summarizes the detail of loans and leases acquired as a result of the Comerica acquisition on February 1, 2026.
TABLE 15: Loans and Leases Acquired
($ in millions)
Commercial loans and leases:
Commercial and industrial loans $ 28,511
Commercial mortgage loans 15,119
Commercial construction loans 2,635
Commercial leases 203
Total commercial loans and leases $ 46,468
Consumer loans:
Residential mortgage loans 1,854
Home equity 1,772
Other consumer loans 434
Total consumer loans $ 4,060
Total loans and leases $ 50,528
Total portfolio loans and leases (excluding loans and leases held for sale) $ 50,527
The following discussion excludes the impact of the loans and leases acquired in the Comerica acquisition. Commercial loans and leases increased $4.9 billion, or 7%, from December 31, 2025 primarily due to increases in commercial and industrial loans and commercial construction loans. Commercial and industrial loans increased $4.5 billion, or 9%, from December 31, 2025 primarily as a result of loan originations exceeding payoffs as well as increased line utilization. Commercial construction loans increased $574 million, or 11%, from December 31, 2025 as loan originations exceeded payoffs.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Investment Securities
The Bancorp uses investment securities as a means of managing interest rate risk, providing collateral for pledging purposes and for liquidity risk management. The carrying value of total investment securities, which consist of available-for-sale debt and other securities, held-to-maturity securities, trading debt securities and equity securities, was $65.2 billion and $49.0 billion at June 30, 2026 and December 31, 2025, respectively. The increase in total investment securities reflects the impact of the Comerica acquisition, including $7.2 billion of available-for-sale debt and other securities, $3.7 billion of held-to-maturity securities, $170 million of trading debt securities and $141 million of equity securities acquired on February 1, 2026.
Debt securities are classified as available-for-sale when, in management’s judgment, they may be sold in response to, or in anticipation of, changes in market conditions. Debt securities that management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Debt securities are classified as trading typically when bought and held principally for the purpose of selling them in the near term. The taxable available-for-sale debt and other securities portfolio had an effective duration of 3.9 and 3.8 at June 30, 2026 and December 31, 2025, respectively. The taxable held-to-maturity securities portfolio had an effective duration of 4.7 and 5.1 at June 30, 2026 and December 31, 2025, respectively.
At June 30, 2026, the Bancorp’s investment securities portfolio consisted primarily of U.S. Treasury and other government guaranteed securities. The Bancorp held an immaterial amount of below-investment grade available-for-sale debt securities and held-to-maturity securities at both June 30, 2026 and December 31, 2025. At both June 30, 2026 and December 31, 2025, the Bancorp did not recognize an allowance for credit losses for its investment securities. The Bancorp also did not recognize provision for credit losses for investment securities during both the three and six months ended June 30, 2026 and 2025.
The Bancorp recognized $7 million of impairment losses on its available-for-sale debt and other securities for both the three and six months ended June 30, 2026. The Bancorp recognized an immaterial amount of impairment losses on its available-for-sale debt and other securities for both the three and six months ended June 30, 2025. These losses were included in securities gains, net, in the Condensed Consolidated Statements of Income and related to certain securities in unrealized loss positions where the Bancorp had determined that it no longer intended to hold the securities until the recovery of their amortized cost bases.
The following table summarizes the end of period components of investment securities:
TABLE 16: Components of Investment Securities
As of ($ in millions) June 30, 2026 December 31, 2025
Available-for-sale debt and other securities (amortized cost basis):
U.S. Treasury and federal agencies securities $ 1,906 1,575
Mortgage-backed securities:
Agency residential mortgage-backed securities 15,659 9,138
Agency commercial mortgage-backed securities 23,556 22,307
Non-agency commercial mortgage-backed securities 2,826 3,032
Asset-backed securities and other debt securities 2,416 2,381
Other securities(a) 1,260 674
Total available-for-sale debt and other securities $ 47,623 39,107
Held-to-maturity securities (amortized cost basis):(b)
U.S. Treasury and federal agencies securities $ 3,382 2,438
Mortgage-backed securities:
Agency residential mortgage-backed securities 5,472 5,023
Agency commercial mortgage-backed securities 9,548 3,905
Asset-backed securities and other debt securities 2 2
Total held-to-maturity securities $ 18,404 11,368
Trading debt securities (fair value):
U.S. Treasury and federal agencies securities $ 697 494
Obligations of states and political subdivisions securities 149 63
Agency residential mortgage-backed securities 42 49
Asset-backed securities and other debt securities 965 451
Total trading debt securities $ 1,853 1,057
Total equity securities (fair value) $ 495 453
(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings that are carried at cost.
(b)Includes a discount of $685 and $742 at June 30, 2026 and December 31, 2025, respectively, pertaining to the remaining unamortized portion of unrealized losses on securities transferred to HTM.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
The following table presents the estimated future amortization of unrealized losses related to investment securities transferred from available-for-sale to held-to-maturity. At June 30, 2026, these transferred securities had an estimated weighted-average life of 6.3 years.
TABLE 17: Estimated Amortization of Unrealized Losses on Securities Transferred to Held-to-Maturity
As of June 30, 2026 ($ in millions)
Remainder of 2026 $ 62
2027 56
2028 72
2029 43
2030 33
Thereafter 419
Unamortized portion of unrealized losses $ 685
On an amortized cost basis, available-for-sale debt and other securities and held-to-maturity securities comprised 25% and 26% of total interest-earning assets at June 30, 2026 and December 31, 2025, respectively. The estimated weighted-average life of the debt securities in the available-for-sale debt and other securities portfolio was 5.3 years and 5.1 years at June 30, 2026 and December 31, 2025, respectively. In addition, the debt securities in the available-for-sale debt and other securities portfolio had a weighted-average yield of 3.44% and 3.09% at June 30, 2026 and December 31, 2025, respectively. The held-to-maturity securities portfolio had an estimated weighted-average life of 5.7 years and 6.4 years at June 30, 2026 and December 31, 2025, respectively. In addition, the held-to-maturity securities portfolio had a weighted-average yield of 3.89% and 3.50% at June 30, 2026 and December 31, 2025, respectively.
Information presented in Tables 18 and 19 is on a weighted-average life basis, anticipating future prepayments. Yield information is presented on an FTE basis and is computed using amortized cost balances and reflects the impact of prepayments. Maturity and yield calculations for the total available-for-sale debt and other securities portfolio exclude other securities that have no stated yield or maturity.
The fair values of investment securities are impacted by interest rates, credit spreads, market volatility and liquidity conditions. The fair value of the Bancorp’s investment securities portfolio generally decreases when interest rates increase or when credit spreads widen, and, conversely, increases when interest rates decrease or when credit spreads contract. Total net unrealized losses on the available-for-sale debt and other securities portfolio were $3.2 billion and $2.9 billion at June 30, 2026 and December 31, 2025, respectively.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
TABLE 18: Characteristics of Available-for-Sale Debt and Other Securities
As of June 30, 2026 ($ in millions) Amortized Cost Fair Value Weighted-Average Life (in years) Weighted-Average Yield
U.S. Treasury and federal agencies securities:
Average life within one year $ 50 50 1.0 3.55 %
Average life after one year through five years 1,856 1,849 2.7 3.97
Total $ 1,906 1,899 2.7 3.96 %
Agency residential mortgage-backed securities:
Average life within one year 78 77 0.7 3.74
Average life after one year through five years 6,059 5,932 4.0 4.36
Average life after five years through ten years 9,114 8,689 7.0 4.43
Average life after ten years 408 331 11.4 2.85
Total $ 15,659 15,029 5.9 4.36 %
Agency commercial mortgage-backed securities:(a)
Average life within one year 738 731 0.7 3.04
Average life after one year through five years 10,880 10,325 2.8 2.85
Average life after five years through ten years 8,953 7,957 6.8 2.92
Average life after ten years 2,985 2,344 12.8 2.61
Total $ 23,556 21,357 5.5 2.85 %
Non-agency commercial mortgage-backed securities:
Average life within one year 688 681 0.6 3.31
Average life after one year through five years 903 821 3.8 2.47
Average life after five years through ten years 1,235 1,116 5.4 2.97
Total $ 2,826 2,618 3.7 2.89 %
Asset-backed securities and other debt securities:
Average life within one year 130 130 0.3 4.01
Average life after one year through five years 1,970 1,874 3.2 3.37
Average life after five years through ten years 316 299 6.1 3.76
Total $ 2,416 2,303 3.4 3.45 %
Other securities 1,260 1,260
Total available-for-sale debt and other securities $ 47,623 44,466 5.3 3.44 %
(a)Taxable-equivalent yield adjustments included in the above table are 0.01%, 0.04%, 0.05% and 0.02% for securities with an average life between 1 and 5 years, average life between 5 and 10 years, average life greater than 10 years and in total, respectively.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
TABLE 19: Characteristics of Held-to-Maturity Securities
As of June 30, 2026 ($ in millions) Amortized Cost(b) Fair Value Weighted-Average Life (in years) Weighted-Average Yield
U.S. Treasury and federal agencies securities:
Average life within one year $ 193 193 1.0 1.82 %
Average life after one year through five years 1,675 1,666 2.2 2.52
Average life after five years through ten years 1,514 1,524 6.1 4.37
Total $ 3,382 3,383 3.8 3.31 %
Agency residential mortgage-backed securities:
Average life after one year through five years 390 398 4.4 5.92
Average life after five years through ten years 5,082 4,987 8.5 3.65
Total $ 5,472 5,385 8.2 3.81 %
Agency commercial mortgage-backed securities:(a)
Average life within one year 42 43 0.8 3.70
Average life after one year through five years 5,316 5,287 4.0 4.12
Average life after five years through ten years 4,023 3,989 5.9 4.14
Average life after ten years 167 169 11.1 5.07
Total $ 9,548 9,488 4.9 4.14 %
Asset-backed securities and other debt securities:
Average life after five years through ten years 2 2 9.3 6.96
Total $ 2 2 9.3 6.96 %
Total held-to-maturity securities $ 18,404 18,258 5.7 3.89 %
(a)Taxable-equivalent yield adjustments included in the above table are 0.17%, 0.04%, 0.95% and 0.03% for securities with an average life less than 1 year, average life between 5 and 10 years, average life greater than 10 years and in total, respectively.
(b)Includes a discount of $685 pertaining to the unamortized portion of unrealized losses on HTM securities.
Other Short-Term Investments
Other short-term investments have original maturities less than one year and primarily include interest-bearing balances that are funds on deposit at the FRB or other depository institutions. Other short-term investments are used as an extension of the investment securities portfolio to manage liquidity risk. Other short-term investments were $19.4 billion at June 30, 2026, an increase of $474 million from December 31, 2025. The increase was primarily driven by other short-term investment balances acquired in connection with the acquisition of Comerica and an increase in short-term wholesale funding, partially offset by seasonal deposit trends and loan growth during the six months ended June 30, 2026.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Deposits
The Bancorp’s deposit balances represent an important source of funding and revenue growth opportunity. The Bancorp continues to focus on core deposit growth in its retail and commercial franchises by improving customer satisfaction, building full relationships and offering competitive rates and through its strategy of expanding retail presence in high-growth markets, such as in the Southeast and Texas.
The following table presents the end of period components of deposits:
TABLE 20: Components of Deposits
As of ($ in millions) June 30, 2026 December 31, 2025
Demand $ 63,928 42,647
Interest checking 70,527 61,155
Savings 18,161 16,155
Money market 65,932 39,285
Total transaction deposits $ 218,548 159,242
CDs $250,000 or less 12,708 10,599
Total core deposits $ 231,256 169,841
CDs over $250,000(a) 2,885 1,978
Total deposits $ 234,141 171,819
(a)Includes $1 and $777 of retail brokered CDs which are fully covered by FDIC insurance as of June 30, 2026 and December 31, 2025, respectively.
Total deposits increased $62.3 billion, or 36%, from December 31, 2025 due to the Comerica acquisition as the Bancorp assumed commercial and consumer deposit balances of $65.2 billion at acquisition. Table 21 summarizes the detail of deposits assumed as a result of the Comerica acquisition on February 1, 2026.
TABLE 21: Deposits Assumed
($ in millions)
Demand $ 22,509
Interest checking 13,661
Savings 1,970
Money market 22,962
Total transaction deposits $ 61,102
CDs $250,000 or less 2,049
Total core deposits $ 63,151
CDs over $250,000 2,042
Total deposits $ 65,193
The following discussion excludes the impact of the deposits assumed in the Comerica acquisition. Core deposits decreased $1.7 billion, or 1%, from December 31, 2025 primarily due to a decrease in transaction deposits. Transaction deposits decreased $1.8 billion, or 1%, from December 31, 2025 primarily driven by decreases in interest checking deposits and demand deposits, partially offset by an increase in money market deposits. Interest checking deposits decreased $4.3 billion, or 7%, from December 31, 2025 primarily due to the intentional reduction of higher-cost, non-relationship commercial customer deposits as well as seasonal impacts which contributed to lower balances per commercial customer account. Demand deposits decreased $1.2 billion, or 3%, from December 31, 2025 as a result of lower balances per consumer and commercial customer account, which is partially attributable to seasonality. Money market deposits increased $3.7 billion, or 9%, from December 31, 2025 primarily as a result of higher offering rates from promotional offers leading to higher balances per consumer customer account as well as growth in the number of consumer customer accounts.
CDs over $250,000 decreased $1.1 billion, or 57%, from December 31, 2025 primarily due to maturities of retail brokered CDs.
Deposit insurance
The FDIC generally provides a standard amount of insurance of $250,000 per depositor, per insured bank, for each account ownership category defined by the FDIC. As of June 30, 2026 and December 31, 2025, approximately $139.5 billion, or 60%, and $101.8 billion, or 59%, respectively, of the Bancorp’s domestic deposits were estimated to be insured. As of June 30, 2026 and December 31, 2025, approximately $94.1 billion and $69.8 billion, respectively, of the Bancorp’s domestic deposits were estimated to be uninsured. At June 30, 2026 and December 31, 2025, approximately $2.2 billion and $1.1 billion, respectively, of domestic time deposits were estimated to be uninsured. Where information is not readily available to determine the amount of insured deposits, the amount of uninsured deposits is estimated, consistent with the methodologies and assumptions utilized in providing information to the Bank’s regulators.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Borrowings
The Bancorp accesses a variety of short-term and long-term funding sources. Borrowings with original maturities of one year or less are classified as short-term and include federal funds purchased and other short-term borrowings. For further information on the components of short-term borrowings, refer to Note 13 of the Notes to Condensed Consolidated Financial Statements.
The following table summarizes the end of period components of borrowings:
TABLE 22: Components of Borrowings
As of ($ in millions) June 30, 2026 December 31, 2025
Short-term borrowings $ 4,633 926
Long-term debt 17,636 13,589
Total borrowings $ 22,269 14,515
Total borrowings increased $7.8 billion, or 53%, from December 31, 2025 due to increases in long-term debt and short-term borrowings. Long-term debt increased $4.0 billion from December 31, 2025 primarily due to the long-term debt assumed in the Comerica acquisition totaling $5.5 billion. Additionally, the increase from December 31, 2025 included the issuance of senior fixed-rate/floating-rate notes in January 2026 totaling $2.0 billion, which was more than offset by $3.3 billion of redemptions and maturities. For further information regarding long-term debt activity, refer to Note 14 of the Notes to Condensed Consolidated Financial Statements. Short-term borrowings increased $3.7 billion from December 31, 2025 primarily due to an increase in short-term FHLB advances to manage balance sheet liquidity needs due to seasonal fluctuations. The level of other short-term borrowings and mix of total borrowings can fluctuate significantly from period to period depending on funding needs and the sources that are used to satisfy those needs.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
BUSINESS SEGMENT REVIEW
The Bancorp has three reportable segments: Commercial Banking, Consumer and Small Business Banking and Wealth and Asset Management. Additional information on each segment is included in Note 22 of the Notes to Condensed Consolidated Financial Statements. Results of the Bancorp’s segments are presented based on its management structure and management accounting practices, which are specific to the Bancorp. Therefore, the financial results of the Bancorp’s segments are not necessarily comparable with similar information for other financial institutions. The Bancorp refines its methodologies from time to time as management’s accounting practices and businesses change.
The Bancorp manages interest rate risk centrally at the corporate level. By employing an FTP methodology, the segments are insulated from most benchmark interest rate volatility, enabling them to focus on serving customers through the origination of loans and acceptance of deposits. The FTP methodology assigns charge and credit rates to classes of assets and liabilities, respectively, based on the estimated amount and timing of the cash flows for each transaction.
The Bancorp adjusts the FTP charge and credit rates as dictated by changes in interest rates for various interest-earning assets and interest-bearing liabilities and by the review of behavioral assumptions, such as prepayment rates on interest-earning assets and the estimated durations for indeterminate-lived deposits. In general, the charge rates on assets decreased since December 31, 2025 as they were affected by the prevailing level of short-term interest rates and repricing characteristics of the existing portfolio, and to a lesser extent the impact of reduced liquidity premium assumptions on new production throughout 2026. Additionally, charge rates on new production have increased relative to the existing portfolio driven by the impact of higher long-term interest rates. The credit rates for deposit products have increased since December 31, 2025 due to increases in intermediate- and long-term interest rates.
For more information about the Bancorp’s FTP process and other allocation methodologies, refer to the Business Segment Review section included in MD&A of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025.
Results of the Bancorp’s segments for the three and six months ended June 30, 2026 were impacted by activity attributable to the Comerica acquisition and the integration of acquired operations.
The following table summarizes income (loss) before income taxes on an FTE basis by segment:
TABLE 23: Income (Loss) Before Income Taxes (FTE) by Segment
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 2026 2025
Commercial Banking $ 840 384 1,267 646
Consumer and Small Business Banking 616 648 1,088 1,170
Wealth and Asset Management 118 65 184 116
General Corporate and Other(a) (533) (284) (1,286) (461)
Income before income taxes (FTE)(b) $ 1,041 813 1,253 1,471
(a)General Corporate and Other is not a reportable segment and is presented for reconciliation purposes.
(b)Includes FTE adjustments of $5 for both the three months ended June 30, 2026 and 2025 and $10 for both the six months ended June 30, 2026 and 2025.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Commercial Banking
Commercial Banking offers credit intermediation, cash management and financial services to large and middle-market businesses and government and professional customers.
The following table contains selected financial data for the Commercial Banking segment:
TABLE 24: Commercial Banking
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 2026 2025
Income Statement Data
Net interest income (FTE)(a) $ 1,115 595 1,994 1,147
Provision for credit losses 25 79 184 159
Net interest income after provision for credit losses 1,090 516 1,810 988
Noninterest income 507 321 947 622
Noninterest expense 757 453 1,490 964
Income before income taxes (FTE)(a) $ 840 384 1,267 646
Average Balance Sheet Data
Loans and leases, including held for sale $ 113,297 68,784 104,751 68,600
Noninterest-bearing deposits 31,562 16,257 29,075 16,094
Interest-bearing deposits 64,201 43,913 61,638 44,337
(a)Includes FTE adjustments of $3 for both the three months ended June 30, 2026 and 2025 and $6 for both the six months ended June 30, 2026 and 2025.
Income before income taxes on an FTE basis was $840 million and $1.3 billion for the three and six months ended June 30, 2026, respectively, compared to $384 million and $646 million for the same periods in the prior year. The increases were primarily driven by increases in net interest income on an FTE basis and noninterest income, partially offset by increases in noninterest expense. The increase for the three months ended June 30, 2026 also included a decrease in provision for credit losses while the increase for the six months ended June 30, 2026 was partially offset by an increase in provision for credit losses.
Net interest income on an FTE basis increased $520 million and $847 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by increases in the average balances of commercial loans and leases, increases in FTP credits on deposits and decreases in rates paid on average interest-bearing deposits. These positive impacts were partially offset by increases in FTP charges on commercial loans and leases, increases in the average balances of deposits and decreases in yields on average commercial loans and leases.
Provision for credit losses decreased $54 million and increased $25 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year. The decrease for the three months ended June 30, 2026 was primarily driven by an allocated benefit from credit losses related to commercial criticized asset levels compared to an allocated provision for credit losses for the same period in the prior year. The increase for the six months ended June 30, 2026 compared to the same period in the prior year was primarily driven by an increase in the allocated provision for credit losses related to commercial criticized asset levels. Annualized net charge-offs as a percent of average portfolio loans and leases decreased to 19 bps and 22 bps for the three and six months ended June 30, 2026, respectively, compared to 35 bps and 33 bps for the same periods in the prior year.
Noninterest income increased $186 million and $325 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily due to increases in commercial payments revenue, capital markets fees and commercial banking revenue. Noninterest expense increased $304 million and $526 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by increases in other noninterest expense, compensation and benefits expense and card and processing expense.
The average balance sheet data for the Commercial Banking segment reflected the impact of the Comerica acquisition, including $43.4 billion of loans and leases, $15.7 billion of noninterest-bearing deposits and $21.3 billion of interest-bearing deposits on February 1, 2026. Average loans and leases increased $44.5 billion and $36.2 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by the Comerica acquisition which led to increases in average commercial and industrial loans, average commercial mortgage loans and average commercial construction loans. Average interest-bearing deposits increased $20.3 billion and $17.3 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by the Comerica acquisition which led to increases in average money market deposits and average interest checking deposits.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Consumer and Small Business Banking
Consumer and Small Business Banking provides a full range of deposit and loan products to individuals and small businesses through a network of full-service banking centers and relationships with indirect and correspondent loan originators in addition to providing products designed to meet the specific needs of small businesses, including cash management services.
The following table contains selected financial data for the Consumer and Small Business Banking segment:
TABLE 25: Consumer and Small Business Banking
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 2026 2025
Income Statement Data
Net interest income $ 1,237 1,085 2,310 2,060
Provision for credit losses 82 84 171 168
Net interest income after provision for credit losses 1,155 1,001 2,139 1,892
Noninterest income 321 293 618 573
Noninterest expense 860 646 1,669 1,295
Income before income taxes $ 616 648 1,088 1,170
Average Balance Sheet Data
Loans and leases, including held for sale $ 55,675 50,312 54,924 49,652
Noninterest-bearing deposits 29,521 23,349 28,237 23,001
Interest-bearing deposits 90,258 67,635 86,160 67,487
Income before income taxes was $616 million and $1.1 billion for the three and six months ended June 30, 2026, respectively, compared to $648 million and $1.2 billion for the same periods in the prior year. The decreases were primarily driven by increases in noninterest expense, partially offset by increases in net interest income and noninterest income.
Net interest income increased $152 million and $250 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by increases in FTP credits on deposits, increases in the average balances of loans and leases and decreases in rates paid on average interest-bearing deposits. These positive impacts were partially offset by increases in FTP charges on loans and leases and increases in the average balances of deposits.
Noninterest income increased $28 million and $45 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by increases in commercial payments revenue, consumer banking revenue and wealth and asset management revenue, partially offset by decreases in mortgage banking net revenue. Noninterest expense increased $214 million and $374 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by increases in other noninterest expense, compensation and benefits expense, net occupancy expense and marketing expense.
The average balance sheet data for the Consumer and Small Business Banking segment reflected the impact of the Comerica acquisition, including $2.5 billion of loans and leases, $5.5 billion of noninterest-bearing deposits and $18.2 billion of interest-bearing deposits on February 1, 2026. Average loans and leases increased $5.4 billion and $5.3 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily due to increases in average home equity, average indirect secured consumer loans, average commercial and industrial loans and average residential mortgage loans, which included the impact of the Comerica acquisition. Average interest-bearing deposits increased $22.6 billion and $18.7 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by the Comerica acquisition which led to increases in average money market deposits, average interest checking deposits, average CDs and average savings deposits.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Wealth and Asset Management
Wealth and Asset Management provides a full range of wealth management solutions for individuals, companies and not-for-profit organizations, including wealth planning, investment management, banking, insurance, trust and estate services.
The following table contains selected financial data for the Wealth and Asset Management segment:
TABLE 26: Wealth and Asset Management
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 2026 2025
Income Statement Data
Net interest income $ 113 57 195 106
Benefit from credit losses (4) (2) (5) (2)
Net interest income after benefit from credit losses 117 59 200 108
Noninterest income 186 101 352 211
Noninterest expense 185 95 368 203
Income before income taxes $ 118 65 184 116
Average Balance Sheet Data
Loans and leases, including held for sale $ 9,709 4,550 8,844 4,443
Noninterest-bearing deposits 1,384 419 1,222 422
Interest-bearing deposits 11,806 9,624 11,537 10,008
Income before income taxes was $118 million and $184 million for the three and six months ended June 30, 2026, respectively, compared to $65 million and $116 million for the same periods in the prior year. The increases were primarily driven by increases in noninterest income and net interest income, partially offset by increases in noninterest expense.
Net interest income increased $56 million and $89 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by increases in the average balances of loans and leases, increases in FTP credits on deposits and decreases in rates paid on average interest-bearing deposits, partially offset by increases in FTP charges on loans and leases and increases in the average balances on deposits.
Noninterest income increased $85 million and $141 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily due to increases in wealth and asset management revenue. Noninterest expense increased $90 million and $165 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by increases in other noninterest expense and compensation and benefits expense.
The average balance sheet data for the Wealth and Asset Management segment reflected the impact of the Comerica acquisition, including $4.6 billion of loans and leases, $1.1 billion of noninterest-bearing deposits and $2.3 billion of interest-bearing deposits on February 1, 2026. Average loans and leases increased $5.2 billion and $4.4 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by the Comerica acquisition which led to increases in average commercial mortgage loans, average residential mortgage loans and average commercial and industrial loans. Average interest-bearing deposits increased $2.2 billion and $1.5 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily driven by the Comerica acquisition which led to increases in average money market deposits and average interest checking deposits, partially offset by decreases in average savings deposits.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
General Corporate and Other
General Corporate and Other includes the unallocated portion of the investment securities portfolio, securities gains and losses, certain non-core deposit funding, unassigned equity, unallocated provision for credit losses or a benefit from the reduction of the ACL, the payment of preferred stock dividends and certain support activities and other items not attributed to its segments.
Net interest income on an FTE basis decreased $8 million and increased $31 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year. The decrease for the three months ended June 30, 2026 compared to the same period in the prior year was primarily driven by an increase in FTP credits on deposits allocated to the segments and an increase in FTP charges on securities, partially offset by increases in FTP charges on loans and leases allocated to the segments and interest income on securities and commercial loans. The increase for the six months ended June 30, 2026 compared to the same period in the prior year was primarily driven by increases in FTP charges on loans and leases allocated to the segments and interest income on commercial loans and securities. These positive impacts were partially offset by an increase in FTP credits on deposits allocated to the segments and an increase in FTP charges on securities. The increase in FTP charges allocated to the segments was primarily driven by increases in total assets associated with the acquisition of Comerica. To a lesser extent, increases in market interest rates net of reduced liquidity premium assumptions increased FTP charges on new fixed-rate loan and lease production relative to the existing portfolio. The increase in FTP credits allocated to the segments was primarily driven by increases in total liabilities associated with the acquisition of Comerica and higher FTP credit rates paid on deposits as a result of higher market interest rates net of reduced liquidity premium assumptions. Given the daily repricing option on non-maturity deposits, the FTP credits on deposits earned by the segments generally increases or decreases at a faster pace than the amount of allocated FTP charges on loans and leases. Under the Bancorp’s internal reporting methodology, the Bancorp insulates the segments from interest rate risk associated with fixed-rate lending by transferring this risk to General Corporate and Other through the FTP methodology.
Provision for credit losses increased $14 million and decreased $16 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year. The increase for the three months ended June 30, 2026 compared to the same period in the prior year was primarily driven by a decrease in allocations to the segments, partially offset by a decrease in the provision for the reserve for unfunded commitments. The decrease for the six months ended June 30, 2026 compared to the same period in the prior year was primarily driven by an increase in allocations to the segments, partially offset by an increase in the provision for the reserve for unfunded commitments recorded as part of the initial recognition of the reserve for unfunded commitments assumed in the Comerica acquisition.
Noninterest income increased $10 million for the three months ended June 30, 2026 compared to the same period in the prior year primarily driven by an increase in other noninterest income, partially offset by a decrease in commercial payments revenue.
Noninterest expense increased $237 million and $871 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year primarily due to merger-related expenses related to the Comerica acquisition. Refer to the Noninterest Expense subsection of the Statements of Income Analysis section of MD&A for information on the merger-related expenses. Additionally, the increases for the three and six months ended June 30, 2026 compared to the same periods in the prior year were driven by increases in compensation and benefits expense and technology and communications expense, partially offset by increases in corporate overhead allocations from General Corporate and Other to the other segments.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
RISK MANAGEMENT - OVERVIEW
The Risk Management Overview section included in Item 7 of the Bancorp’s Annual Report on Form 10-K describes the Bancorp’s Enterprise Risk Management Framework and Three Lines of Defense structure as well as key areas of risk, which include credit risk, liquidity risk, interest rate risk, price risk, legal and regulatory compliance risk, operational risk, reputation risk and strategic risk. Item 7 of the Bancorp’s Annual Report on Form 10-K also includes additional detailed information about the Bancorp’s processes related to operational risk management as well as legal and regulatory compliance risk management. The following information should be read in conjunction with the Bancorp’s Annual Report on Form 10-K.
CREDIT RISK MANAGEMENT
Credit risk management utilizes a framework that encompasses consistent processes for identifying, assessing, managing, monitoring and reporting credit risk. These processes are supported by a credit risk governance structure that includes Board oversight, policies, risk limits and risk committees.
The Bancorp continues to monitor macroeconomic, governmental policy and geopolitical developments, and their potential impact on borrower performance and overall credit quality. These developments include, among other factors, global conflicts, trade and tariff policies, inflationary pressures, interest rate levels, labor market conditions, energy prices, market volatility, supply chain conditions and trends in consumer discretionary spending, debt levels and defaults. The Bancorp continues to emphasize disciplined client selection, adherence to established underwriting standards and monitoring of potential concentrations of credit risk.
Refer to the Credit Risk Management subsection of the Risk Management section of MD&A included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional information on the Bancorp’s credit risk management framework.
Commercial Portfolio
The Bancorp’s credit risk management strategy seeks to minimize concentrations of risk through diversification. The Bancorp has commercial loan concentration limits based on industry, lines of business within the commercial segment, geography and credit product type. The risk within the commercial loan and lease portfolio is managed and monitored through an underwriting process utilizing detailed origination policies, continuous loan level reviews, monitoring of industry concentration and product type limits and continuous portfolio risk management reporting.
The Bancorp provides loans to a variety of customers ranging from large multinational firms to middle market businesses, small businesses, sole proprietors and high net worth individuals. The origination policies for commercial loans and leases outline the risks and underwriting requirements for individuals and businesses in various industries. Included in the policies are maturity and amortization terms, collateral and leverage requirements, cash flow coverage measures and hold limits. The Bancorp aligns credit and sales teams with specific industry and regional expertise to better monitor and manage different industry and geographic segments of the portfolio.
The commercial loan portfolio acquired in connection with the Comerica acquisition is comprised primarily of middle market loans but also includes specialty lending segments. These products serve distinct client needs and broaden the Bancorp’s lending capabilities. The portfolio is managed within Fifth Third’s credit risk framework to ensure adherence to risk appetite.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
The following table provides detail on commercial loans and leases by industry classification (as defined by the North American Industry Classification System), by loan size and by state, illustrating the diversity and granularity of the Bancorp’s commercial loans and leases as of:
TABLE 27: Commercial Loan and Lease Portfolio (excluding loans and leases held for sale)
June 30, 2026 December 31, 2025
($ in millions) Outstanding Exposure Nonaccrual Outstanding Exposure Nonaccrual
By Industry:
Real estate $ 24,226 35,521 35 13,929 23,228 7
Business services 14,918 23,406 28 6,600 11,128 90
Financial services and insurance 14,805 34,912 23 9,633 21,859 20
Manufacturing 13,586 27,722 54 8,561 18,998 59
Wholesale trade 8,665 17,438 71 5,378 10,566 45
Retail trade 8,656 16,690 98 3,248 7,808 53
Construction 7,294 14,582 48 3,112 7,599 26
Healthcare 6,918 10,157 76 5,834 8,616 45
Accommodation and food 5,379 9,228 31 4,571 7,076 14
Communication and information 5,378 8,983 100 3,191 6,072 53
Mining 3,621 9,272 — 2,103 5,677 —
Transportation and warehousing 3,551 6,054 4 2,381 3,894 5
Utilities 3,080 6,579 9 1,884 3,251 —
Entertainment and recreation 2,569 4,484 21 1,666 3,032 4
Other 2,234 6,300 17 1,471 2,773 6
Total $ 124,880 231,328 615 73,562 141,577 427
By Loan Size:
Less than $1 million 4 % 4 17 6 5 15
$1 million to $5 million 12 9 12 7 5 10
$5 million to $10 million 9 7 8 4 4 8
$10 million to $25 million 17 16 39 12 10 18
$25 million to $50 million 22 22 13 23 21 25
$50 million to $100 million 20 21 11 26 28 24
Greater than $100 million 16 21 — 22 27 —
Total 100 % 100 100 100 100 100
By State:
Texas 17 % 16 14 8 9 16
California 15 13 9 11 9 4
Michigan 8 8 16 5 5 5
Illinois 6 5 9 8 7 6
Florida 5 5 11 7 7 5
New York 5 5 7 7 6 18
Ohio 5 6 3 8 10 3
Indiana 3 2 — 3 3 1
Other 36 40 31 43 44 42
Total 100 % 100 100 100 100 100
The origination policies for commercial real estate outline the risks and underwriting requirements for owner and nonowner-occupied and construction lending. Included in the policies are maturity and amortization terms, maximum LTVs, minimum debt service coverage ratios, construction loan monitoring procedures, appraisal requirements, pre-leasing requirements (as applicable), pro forma analysis requirements and interest rate sensitivity. The Bancorp requires a valuation of real estate collateral, which may include third-party appraisals, be performed at the time of origination and renewal in accordance with regulatory requirements and on an as-needed basis when market conditions justify. The Bancorp maintains an appraisal review department to order and review third-party appraisals in accordance with regulatory requirements. Nonaccrual assets with relationships exceeding $1 million are reviewed quarterly to assess the appropriateness of the value ascribed in the assessment of charge-offs and specific reserves. Additionally, collateral values are also reviewed at least annually for all criticized assets.
The Bancorp assesses all real estate and non-real estate collateral securing a loan and considers all cross-collateralized loans in the calculation of the LTV ratio. The following tables provide detail on the most recent LTV ratios for commercial mortgage loans greater than $1 million, excluding commercial mortgage loans that are individually evaluated for an ACL and loans which do not have real estate as the primary collateral. The Bancorp does not typically aggregate the LTV ratios for commercial mortgage loans less than $1 million.
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TABLE 28: Commercial Mortgage Loans Outstanding by LTV, Loans Greater Than $1 Million
As of June 30, 2026 ($ in millions) LTV > 100% LTV 80-100% LTV < 80%
Commercial mortgage owner-occupied loans $ 365 973 8,281
Commercial mortgage nonowner-occupied loans — 267 14,376
Total $ 365 1,240 22,657
TABLE 29: Commercial Mortgage Loans Outstanding by LTV, Loans Greater Than $1 Million
As of December 31, 2025 ($ in millions) LTV > 100% LTV 80-100% LTV < 80%
Commercial mortgage owner-occupied loans $ 423 544 3,392
Commercial mortgage nonowner-occupied loans — 92 5,800
Total $ 423 636 9,192
Generally, loans with an LTV greater than 80% are originated with either a compensating SBA guaranty or other structural credit protections.
The Bancorp views nonowner-occupied commercial real estate as a higher credit risk product compared to some other commercial loan portfolios due to the higher volatility of the industry.
The following tables provide an analysis of nonowner-occupied commercial real estate loans, disaggregated by property location (excluding loans held for sale):
TABLE 30: Nonowner-Occupied Commercial Real Estate (excluding loans held for sale)(a)
As of June 30, 2026 ($ in millions) Outstanding Exposure Nonaccrual
By State:
California $ 4,749 6,525 15
Texas 4,468 6,364 1
Florida 1,870 2,912 —
Michigan 1,534 1,848 6
Illinois 1,163 1,377 2
Ohio 1,056 1,506 —
North Carolina 754 1,135 —
Nevada 635 742 —
Arizona 506 821 —
Georgia 493 946 —
All other states 5,826 7,613 3
Total $ 23,054 31,789 27
(a)Included in commercial mortgage loans and commercial construction loans in the Loans and Leases subsection of the Balance Sheet Analysis section of MD&A.
TABLE 31: Nonowner-Occupied Commercial Real Estate (excluding loans held for sale)(a)
As of December 31, 2025 ($ in millions) Outstanding Exposure Nonaccrual
By State:
California $ 862 1,262 —
Texas 1,010 1,917 —
Florida 1,377 2,222 —
Michigan 784 990 —
Illinois 979 1,329 —
Ohio 918 1,450 —
North Carolina 409 513 —
Nevada 268 344 —
Arizona 75 117 —
Georgia 277 675 —
All other states 3,859 5,273 5
Total $ 10,818 16,092 5
(a)Included in commercial mortgage loans and commercial construction loans in the Loans and Leases subsection of the Balance Sheet Analysis section of MD&A.
The Bancorp realized $1 million of net recoveries on nonowner-occupied commercial real estate loans for both the three and six months ended June 30, 2026, compared to an immaterial amount of net charge-offs for both the three and six months ended June 30, 2025. At
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
June 30, 2026 and 2025, $1 million and $3 million, respectively, of the Bancorp’s nonowner-occupied commercial real estate loans were 90 days past due and still accruing.
Consumer Portfolio
The Bancorp’s consumer portfolio is materially comprised of six categories of loans: residential mortgage loans, home equity, indirect secured consumer loans, credit card, solar energy installation loans and other consumer loans. The Bancorp has identified certain credit characteristics within these six categories of loans which it believes represent a higher level of risk compared to the rest of the consumer loan portfolio. The Bancorp does not update LTVs for the consumer portfolio subsequent to origination except as part of the charge-off process for real estate secured loans. The Bancorp actively manages the consumer portfolio through concentration limits, which mitigate credit risk through limiting the exposure to lower FICO scores, higher LTVs, specific geographic concentration risks and additional risk elements.
The Bancorp continues to ensure that underwriting standards and guidelines adequately account for broader economic conditions affecting the consumer portfolio, including the impact of interest rate movements. Guidelines are designed to ensure that the various consumer products fall within the Bancorp’s risk appetite. These guidelines are monitored and adjusted as deemed appropriate in response to the prevailing economic conditions while remaining within the Bancorp’s risk appetite limits.
The payment structures for certain variable-rate products (such as residential mortgage loans, home equity and credit card) are susceptible to changes in benchmark interest rates. Changes in interest rates may affect borrower payment obligations and credit performance, particularly when coupled with broader economic pressures affecting consumer finances. The Bancorp actively monitors the portion of its consumer portfolio that is susceptible to changes in minimum payments and continues to assess the impact on the overall risk appetite and soundness of the portfolio.
The consumer loan portfolio acquired in connection with the Comerica acquisition is comprised primarily of residential mortgage, home equity, and other consumer loans. The portfolios will be managed within the Bancorp’s credit risk management framework to ensure adherence to risk appetite.
Residential mortgage portfolio
The Bancorp manages credit risk in the residential mortgage portfolio through underwriting guidelines that limit exposure to loan characteristics determined to increase credit risk. Additionally, the portfolio is governed by concentration limits that ensure product and channel diversification. The Bancorp may also package and sell loans in the portfolio.
The Bancorp does not originate residential mortgage loans that permit customers to make payments that are less than the accruing interest. The Bancorp originates both fixed-rate and ARM loans. Within the ARM portfolio, approximately $646 million of ARM loans will have rate resets during the next twelve months. Underlying characteristics of these borrowers include a weighted-average origination debt-to-income ratio of 52% and weighted-average origination LTV of 69%. Approximately 77% of these loans are expected to experience an increase in rate upon reset. For those borrowers, rates are expected to increase by an average of approximately 1.8%, resulting in an average increase in monthly payment amount of approximately 44%.
Certain residential mortgage products have characteristics that may increase the Bancorp’s credit loss rates in the event of a decline in housing values. These types of mortgage products offered by the Bancorp include loans with high LTVs, multiple loans secured by the same collateral that when combined result in an LTV greater than 80% and interest-only loans. The Bancorp has deemed residential mortgage loans with greater than 80% LTVs and no mortgage insurance as loans that represent a higher level of risk. Approximately 68% of these loans consist of loans originated through the Bancorp’s loan program for doctors.
The following table provides an analysis of the residential mortgage portfolio loans outstanding by LTV at origination as of:
TABLE 32: Residential Mortgage Portfolio Loans by LTV at Origination
June 30, 2026 December 31, 2025
($ in millions) Outstanding Weighted- Average LTV Outstanding Weighted- Average LTV
LTV ≤ 80% $ 13,156 64.5 % $ 11,560 64.3 %
LTV > 80%, with mortgage insurance(a) 3,336 95.3 3,133 95.4
LTV > 80%, no mortgage insurance 3,221 91.5 2,959 91.5
Total $ 19,713 74.1 % $ 17,652 74.5 %
(a)Includes loans with either borrower or lender paid mortgage insurance.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
The following tables provide an analysis of the residential mortgage portfolio loans outstanding by state with a greater than 80% LTV at origination and no mortgage insurance:
TABLE 33: Residential Mortgage Portfolio Loans, LTV Greater Than 80% at Origination, No Mortgage Insurance
As of June 30, 2026 ($ in millions) Outstanding 90 Days Past Due and Accruing Nonaccrual
By State:
Illinois $ 621 — 5
Ohio 591 1 9
Florida 589 1 5
North Carolina 245 — —
Michigan 233 — 3
Indiana 194 — 2
Georgia 187 — 1
Kentucky 137 1 2
All other states 424 1 4
Total $ 3,221 4 31
TABLE 34: Residential Mortgage Portfolio Loans, LTV Greater Than 80% at Origination, No Mortgage Insurance
As of December 31, 2025 ($ in millions) Outstanding 90 Days Past Due and Accruing Nonaccrual
By State:
Illinois $ 599 — 5
Ohio 576 1 8
Florida 547 — 4
North Carolina 238 — —
Michigan 187 — 2
Indiana 188 — 2
Georgia 169 — 1
Kentucky 140 — 2
All other states 315 — 3
Total $ 2,959 1 27
Net charge-offs on residential mortgage loans with an LTV greater than 80% at origination and no mortgage insurance were immaterial for both the three and six months ended June 30, 2026 and 2025.
Home equity portfolio
The Bancorp’s home equity portfolio of $6.9 billion is primarily comprised of home equity lines of credit with a 10-year interest-only draw period followed by a 20-year amortization period. The home equity portfolio is managed in two primary groups: loans with a combined LTV greater than 80% and loans with an LTV of 80% or less, based on appraisals at origination. As of June 30, 2026, these loans were predominantly located within the Bancorp’s footprint and had a weighted-average refreshed FICO score of 754. For additional information, refer to Tables 36, 37 and 38.
The Bancorp actively manages lines of credit and makes adjustments in lending limits when it believes it is necessary based on FICO score deterioration and property devaluation. The Bancorp does not routinely obtain appraisals on performing loans to update LTVs after origination. However, the Bancorp monitors the local housing markets by reviewing various home price indices and incorporates the impact of the changing market conditions in its ongoing credit monitoring processes.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
The following table provides an analysis of home equity portfolio loans outstanding disaggregated based upon refreshed FICO score as of:
TABLE 35: Home Equity Portfolio Loans Outstanding by Refreshed FICO Score
June 30, 2026 December 31, 2025
($ in millions) Outstanding % of Total Outstanding % of Total
Senior Liens:
FICO ≤ 659 $ 157 2 % $ 95 2 %
FICO 660-719 234 3 159 3
FICO ≥ 720 1,574 23 1,099 23
Total senior liens $ 1,965 28 % $ 1,353 28 %
Junior Liens:
FICO ≤ 659 393 6 276 6
FICO 660-719 741 11 579 12
FICO ≥ 720 3,830 55 2,638 54
Total junior liens $ 4,964 72 % $ 3,493 72 %
Total $ 6,929 100 % $ 4,846 100 %
The Bancorp believes that home equity portfolio loans with a greater than 80% LTV (including senior liens, if applicable) present a higher level of risk. The following table provides an analysis of the home equity portfolio loans outstanding in a senior and junior lien position by LTV at origination as of:
TABLE 36: Home Equity Portfolio Loans Outstanding by LTV at Origination
June 30, 2026 December 31, 2025
($ in millions) Outstanding Weighted- Average LTV Outstanding Weighted- Average LTV
Senior Liens:
LTV ≤ 80% $ 1,839 48.8 % $ 1,228 48.2 %
LTV > 80% 126 87.9 125 88.0
Total senior liens $ 1,965 51.5 % $ 1,353 52.0 %
Junior Liens:
LTV ≤ 80% 4,052 63.5 2,621 63.3
LTV > 80% 912 86.9 872 87.6
Total junior liens $ 4,964 67.9 % $ 3,493 69.5 %
Total $ 6,929 63.3 % $ 4,846 64.7 %
The following tables provide an analysis of home equity portfolio loans outstanding by state with an LTV greater than 80% (including senior liens, if applicable) at origination:
TABLE 37: Home Equity Portfolio Loans Outstanding with an LTV Greater than 80% at Origination
As of June 30, 2026 ($ in millions) Outstanding Exposure Nonaccrual
By State:
Ohio $ 278 697 8
Illinois 142 336 5
Michigan 131 352 5
Florida 121 249 3
Indiana 119 258 4
Kentucky 77 172 2
All other states 170 394 5
Total $ 1,038 2,458 32
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
TABLE 38: Home Equity Portfolio Loans Outstanding with an LTV Greater than 80% at Origination
As of December 31, 2025 ($ in millions) Outstanding Exposure Nonaccrual
By State:
Ohio $ 282 722 7
Illinois 141 346 4
Michigan 124 320 2
Florida 114 233 2
Indiana 119 264 3
Kentucky 80 183 2
All other states 137 323 2
Total $ 997 2,391 22
The Bancorp realized net recoveries of an immaterial amount and $1 million on home equity loans with an LTV greater than 80% at origination for the three and six months ended June 30, 2026, respectively, compared to an immaterial amount of net charge-offs for both the three and six months ended June 30, 2025.
Indirect secured consumer portfolio
As of June 30, 2026 the indirect secured consumer portfolio consisted of $15.4 billion of automobile loans and $2.8 billion primarily comprised of indirect recreational vehicle and marine loans. All concentration and guideline changes are monitored monthly to ensure alignment with original credit performance.
The following table provides an analysis of indirect secured consumer portfolio loans outstanding disaggregated based upon FICO score at origination as of:
TABLE 39: Indirect Secured Consumer Portfolio Loans Outstanding by FICO Score at Origination
June 30, 2026 December 31, 2025
($ in millions) Outstanding % of Total Outstanding % of Total
FICO ≤ 659 $ 166 1 % $ 172 1 %
FICO 660-719 3,084 17 3,102 17
FICO ≥ 720 14,936 82 14,690 82
Total $ 18,186 100 % $ 17,964 100 %
It is a common industry practice to advance on these types of loans an amount in excess of the collateral value due to the inclusion of negative equity trade-in, maintenance/warranty products, taxes, title and other fees paid at closing. The Bancorp monitors its exposure to these higher risk loans.
The following table provides an analysis of indirect secured consumer portfolio loans outstanding by LTV at origination as of:
TABLE 40: Indirect Secured Consumer Portfolio Loans Outstanding by LTV at Origination
June 30, 2026 December 31, 2025
($ in millions) Outstanding Weighted- Average LTV Outstanding Weighted- Average LTV
LTV ≤ 100% $ 12,956 80.3 % $ 12,961 80.0 %
LTV > 100% 5,230 110.2 5,003 110.1
Total $ 18,186 88.8 % $ 17,964 88.4 %
At June 30, 2026 and December 31, 2025, $25 million and $26 million, respectively, of the Bancorp’s nonaccrual indirect secured consumer portfolio loans had an LTV greater than 100% at origination. Net charge-offs on indirect secured consumer loans with an LTV greater than 100% at origination were $9 million and $5 million for the three months ended June 30, 2026 and 2025, respectively, and $20 million and $14 million for the six months ended June 30, 2026 and 2025, respectively.
Credit card portfolio
The credit card portfolio consists of predominantly prime accounts with 98% of balances existing within the Bancorp’s footprint at both June 30, 2026 and December 31, 2025. At June 30, 2026 and December 31, 2025, 71% and 72%, respectively, of the outstanding balances were originated through branch-based relationships with the remainder coming from direct mail campaigns and online acquisitions.
Given the variable nature of the credit card portfolio, interest rate increases impact this product and it is regularly monitored to ensure the portfolio remains within the Bancorp’s risk appetite.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
The following table provides an analysis of the Bancorp’s outstanding credit card portfolio disaggregated based upon FICO score at origination as of:
TABLE 41: Credit Card Portfolio Loans Outstanding by FICO Score at Origination
June 30, 2026 December 31, 2025
($ in millions) Outstanding % of Total Outstanding % of Total
FICO ≤ 659 $ 83 5 % $ 83 5 %
FICO 660-719 449 27 471 27
FICO ≥ 720 1,151 68 1,193 68
Total $ 1,683 100 % $ 1,747 100 %
Solar energy installation loans portfolio
The Bancorp originated point-of-sale solar energy installation loans through a network of approved installers. The Bancorp considers several factors when monitoring its solar energy installation loan portfolio, including concentrations by installer, concentrations by state and FICO distributions at origination. At both June 30, 2026 and December 31, 2025, loans originated through the Bancorp’s three largest approved installers represented approximately 22% of total balances outstanding in the solar energy installation loan portfolio. The expiration of consumer clean energy tax incentives on December 31, 2025 led to a market shift away from loan-based financing. As a result, the Bancorp paused the origination of new loans in this portfolio in July 2026.
The following table provides an analysis of solar energy installation portfolio loans outstanding by state as of:
TABLE 42: Solar Energy Installation Portfolio Loans Outstanding by State
June 30, 2026 December 31, 2025
($ in millions) Outstanding Nonaccrual Outstanding Nonaccrual
By State:
Florida $ 612 10 646 6
California 527 1 552 1
Texas 495 2 525 3
Arizona 348 2 370 2
Virginia 255 1 270 —
Oregon 203 1 219 —
Colorado 172 — 181 —
Nevada 166 — 175 —
New York 137 — 144 —
Connecticut 107 — 113 1
All other states 1,292 6 1,365 9
Total $ 4,314 23 4,560 22
The following table provides an analysis of solar energy installation portfolio loans outstanding disaggregated based upon FICO score at origination as of:
TABLE 43: Solar Energy Installation Portfolio Loans Outstanding by FICO Score at Origination
June 30, 2026 December 31, 2025
($ in millions) Outstanding % of Total Outstanding % of Total
FICO ≤ 659 $ 4 — % $ 4 — %
FICO 660-719 625 15 652 14
FICO ≥ 720 3,685 85 3,904 86
Total $ 4,314 100 % $ 4,560 100 %
Other consumer loans portfolio
Other consumer portfolio loans are comprised of secured and unsecured loans originated through the Bancorp’s branch network, point-of-sale home improvement loans originated through a network of contractors and installers, and other point-of-sale loans originated or purchased in connection with third-party companies. Loans originated in connection with one third-party point-of-sale company are impacted by certain credit loss protection coverage provided by that company. The Bancorp discontinued origination of new loans with this third-party company in September 2022.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
The following table provides an analysis of other consumer portfolio loans outstanding by product type as of:
TABLE 44: Other Consumer Portfolio Loans Outstanding by Product Type
June 30, 2026 December 31, 2025
($ in millions) Outstanding % of Total Outstanding % of Total
Other secured $ 1,299 46 % $ 999 44 %
Point-of-sale home improvement 613 22 543 23
Unsecured 626 22 422 18
Third-party point-of-sale 285 10 356 15
Total $ 2,823 100 % $ 2,320 100 %
Analysis of Nonperforming Assets
Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain and certain other assets, including OREO and other repossessed property. A summary of nonperforming assets is included in Table 45. For further information on the Bancorp’s policies related to accounting for delinquent and nonperforming loans and leases, refer to the Nonaccrual Loans and Leases section of Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025.
TABLE 45: Summary of Nonperforming Assets and Delinquent Loans and Leases
As of ($ in millions) June 30, 2026 December 31, 2025
Nonaccrual portfolio loans and leases:
Commercial and industrial loans $ 455 393
Commercial mortgage loans 94 34
Commercial construction loans 62 —
Commercial leases 4 —
Residential mortgage loans 176 149
Home equity 131 71
Indirect secured consumer loans 62 61
Credit card 29 29
Solar energy installation loans 23 22
Other consumer loans 5 8
Total nonaccrual portfolio loans and leases(a)(b) $ 1,041 767
OREO and other repossessed property(d) 34 30
Total nonperforming portfolio assets $ 1,075 797
Nonaccrual loans held for sale 167 70
Total nonperforming assets $ 1,242 867
Total portfolio loans and leases 90 days past due and still accruing:
Commercial and industrial loans $ 4 2
Commercial mortgage loans 1 —
Commercial construction loans — 1
Residential mortgage loans(c) 11 10
Credit card 16 17
Other consumer loans 1 —
Total portfolio loans and leases 90 days past due and still accruing $ 33 30
Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO 0.60 % 0.65
Nonperforming portfolio loans and leases as a percent of portfolio loans and leases 0.58 0.62
ACL as a percent of nonperforming portfolio loans and leases 303 314
ACL as a percent of nonperforming portfolio assets 293 302
(a)Includes $35 and $21 of nonaccrual government-insured commercial loans whose repayments are insured by the SBA as of June 30, 2026 and December 31, 2025, respectively.
(b)Nonaccrual loans and leases secured by real estate were 46% and 34% of nonaccrual loans and leases as of June 30, 2026 and December 31, 2025, respectively.
(c)Excludes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. These advances were $266 as of June 30, 2026 and $195 as of December 31, 2025. The Bancorp recognized losses of an immaterial amount for both the three months ended June 30, 2026 and 2025 and an immaterial amount and $1 for the six months ended June 30, 2026 and 2025, respectively, due to claim denials and curtailments associated with these insured or guaranteed loans.
(d)Includes $16 and $12 of branch-related real estate no longer intended to be used for banking purposes as of June 30, 2026 and December 31, 2025, respectively.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
The following tables provide a rollforward of portfolio nonaccrual loans and leases, by portfolio segment:
TABLE 46: Rollforward of Portfolio Nonaccrual Loans and Leases
For the six months ended June 30, 2026 ($ in millions) Commercial Residential Mortgage Consumer Total
Balance, beginning of period $ 427 149 191 767
Transfers to nonaccrual status 386 37 208 631
Acquired nonaccrual loans 179 19 32 230
Transfers to accrual status (2) (11) (39) (52)
Transfers to held for sale (134) — — (134)
Loan paydowns/payoffs (95) (19) (55) (169)
Transfers to OREO — (2) (8) (10)
Charge-offs (151) — (84) (235)
Draws/other extensions of credit 5 3 5 13
Balance, end of period $ 615 176 250 1,041
TABLE 47: Rollforward of Portfolio Nonaccrual Loans and Leases
For the six months ended June 30, 2025 ($ in millions) Commercial Residential Mortgage Consumer Total
Balance, beginning of period $ 456 137 230 823
Transfers to nonaccrual status 335 32 172 539
Transfers to accrual status (4) (9) (65) (78)
Transfers to held for sale (41) — — (41)
Loan paydowns/payoffs (89) (16) (41) (146)
Transfers to OREO — (3) (7) (10)
Charge-offs (156) — (89) (245)
Draws/other extensions of credit 7 2 2 11
Balance, end of period $ 508 143 202 853
Analysis of Net Loan Charge-offs
Table 48 provides a summary of credit loss experience and net charge-offs as a percent of average portfolio loans and leases outstanding by loan category.
The ratio of commercial loan and lease net charge-offs as a percent of average portfolio commercial loans and leases decreased to 21 bps during the three months ended June 30, 2026, compared to 38 bps during the same period in the prior year primarily due to decreases in net charge-offs on commercial and industrial loans of $4 million and commercial mortgage loans of $3 million for the three months ended June 30, 2026. The ratio of commercial loan and lease net charge-offs as a percent of average portfolio commercial loans and leases decreased to 23 bps during the six months ended June 30, 2026, compared to 37 bps during the same period in the prior year driven by a decrease in net charge-offs on commercial mortgage loans of $14 million, partially offset by an increase in net charge-offs on commercial and industrial loans of $13 million for the six months ended June 30, 2026. Additionally, the decreases in the ratio of commercial loan and lease net charge-offs as a percent of average portfolio commercial loans and leases for both the three and six months ended June 30, 2026 were largely attributable to increases in average portfolio commercial loan and lease balances primarily driven by the Comerica acquisition.
The ratio of consumer loan net charge-offs as a percent of average portfolio consumer loans decreased to 53 bps and 56 bps during the three and six months ended June 30, 2026, respectively, compared to 56 bps and 59 bps during the same periods in the prior year as increases in net charge-offs on solar energy installation loans of $5 million and $9 million and increases in net charge-offs on indirect secured consumer loans of $2 million and $4 million for the three and six months ended June 30, 2026, respectively, were more than offset by decreases in net charge-offs on other consumer loans of $5 million and $4 million for the three and six months ended June 30, 2026, respectively, and increases in average portfolio consumer loan balances for both the three and six months ended June 30, 2026 primarily driven by the Comerica acquisition.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
TABLE 48: Summary of Credit Loss Experience
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 2026 2025
Losses charged-off:
Commercial and industrial loans $ (73) (84) (151) (137)
Commercial mortgage loans — (4) — (15)
Commercial construction loans — — — —
Commercial leases — (2) — (4)
Residential mortgage loans (1) — (1) (1)
Home equity (1) (2) (3) (3)
Indirect secured consumer loans (36) (33) (76) (69)
Credit card (20) (20) (39) (42)
Solar energy installation loans (29) (23) (55) (44)
Other consumer loans(a) (21) (26) (43) (51)
Total losses charged-off $ (181) (194) (368) (366)
Recoveries of losses previously charged-off:
Commercial and industrial loans $ 8 15 17 16
Commercial mortgage loans — 1 — 1
Commercial construction loans 1 — 1 —
Commercial leases — 3 — 3
Residential mortgage loans 1 1 1 2
Home equity 1 2 3 2
Indirect secured consumer loans 18 17 34 31
Credit card 5 5 10 10
Solar energy installation loans 4 3 8 6
Other consumer loans(a) 8 8 15 19
Total recoveries of losses previously charged-off $ 46 55 89 90
Net losses charged-off: (b)
Commercial and industrial loans $ (65) (69) (134) (121)
Commercial mortgage loans — (3) — (14)
Commercial construction loans 1 — 1 —
Commercial leases — 1 — (1)
Residential mortgage loans — 1 — 1
Home equity — — — (1)
Indirect secured consumer loans (18) (16) (42) (38)
Credit card (15) (15) (29) (32)
Solar energy installation loans (25) (20) (47) (38)
Other consumer loans (13) (18) (28) (32)
Total net losses charged-off $ (135) (139) (279) (276)
Net losses charged-off as a percent of average portfolio loans and leases:
Commercial and industrial loans 0.31 % 0.51 0.34 0.45
Commercial mortgage loans (0.01) 0.11 — 0.23
Commercial construction loans (0.02) — (0.02) —
Commercial leases (0.01) (0.10) — 0.09
Total commercial loans and leases 0.21 % 0.38 0.23 0.37
Residential mortgage loans — (0.01) — (0.01)
Home equity (0.02) 0.02 (0.01) 0.03
Indirect secured consumer loans 0.40 0.37 0.47 0.45
Credit card 3.60 3.74 3.55 3.96
Solar energy installation loans 2.25 1.86 2.14 1.79
Other consumer loans 1.95 2.49 2.07 2.50
Total consumer loans 0.53 % 0.56 0.56 0.59
Total net losses charged-off as a percent of average portfolio loans and leases 0.30 % 0.45 0.33 0.45
(a)The Bancorp recorded $3 and $7 in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements for the three and six months ended June 30, 2026, respectively, compared to $5 and $10 for the three and six months ended June 30, 2025, respectively.
(b)Excludes net charge-offs of $111 which were taken at the time of the Comerica acquisition.
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Allowance for Credit Losses
The allowance for credit losses is comprised of the ALLL and the reserve for unfunded commitments. The Bancorp maintains the ALLL to absorb the amount of credit losses that are expected to be incurred over the remaining contractual terms of the related loans and leases (as adjusted for prepayments). In addition to the ALLL, the Bancorp maintains a reserve for unfunded commitments recorded in other liabilities in the Condensed Consolidated Balance Sheets. The provision for the reserve for unfunded commitments is included in the provision for credit losses in the Condensed Consolidated Statements of Income.
For more information about the Bancorp’s methodology for determining the ACL, refer to the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025, including the Critical Accounting Policies section and Allowance for Credit Losses subsection of the Risk Management section of MD&A and Note 1 of the Notes to Consolidated Financial Statements.
At both June 30, 2026 and December 31, 2025, the Bancorp used three forward-looking economic scenarios during the reasonable and supportable forecast period in its expected credit loss models to address the inherent imprecision in macroeconomic forecasting. Each of the three scenarios was developed by a third-party that is subject to the Bancorp’s Third-Party Risk Management program including oversight by the Bancorp’s independent model risk management group. The scenarios included a most likely outcome (Baseline) and two less probable scenarios with one being more favorable than the Baseline and the other being less favorable. The more favorable alternative scenario (Upside) depicted a stronger growth outlook while the less favorable outlook (Downside) depicted a moderate recession.
The Baseline scenario was developed such that the expectation is that the economy will perform better than the projection 50% of the time and worse than the projection 50% of the time. The Upside scenario was developed such that there is a 10% probability that the economy will perform better than the projection and a 90% probability that it will perform worse. The Downside scenario was developed such that there is a 90% probability that the economy will perform better than the projection and a 10% probability that it will perform worse.
June 30, 2026 ACL
The ACL as of June 30, 2026 increased $738 million from December 31, 2025 primarily driven by impacts of the Comerica acquisition, including the initial recognition of allowances on PCD loans and leases and PSLs as well as the initial recognition of the reserve for unfunded commitments as of the acquisition date. Additionally, the increase from December 31, 2025 included a qualitative adjustment for economic uncertainty from the U.S.-Iran conflict. As of June 30, 2026, the Bancorp’s macroeconomic scenarios included estimates of the expected impacts of changes in economic conditions caused by forecasted higher tariffs and oil prices.
At June 30, 2026, the Bancorp assigned an 80% probability weighting to the Baseline scenario and 10% to each of the Upside and Downside scenarios. The following table provides a range of key macroeconomic factors utilized in the Baseline, Upside and Downside scenarios as of June 30, 2026:
TABLE 49: Key Macroeconomic Factors(b)
Baseline Scenario Upside Scenario Downside Scenario
Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3
Inflation rate 3.4 % 2.6 1.9 3.3 2.5 1.9 3.4 1.6 1.5
Average annual real GDP growth rate 1.9 1.9 2.3 2.8 2.6 2.4 (1.2) 0.2 2.5
Average unemployment rate 4.5 4.5 4.5 3.7 3.7 3.8 7.4 8.2 6.8
Average federal funds rate 3.6 3.6 3.6 3.7 3.7 3.6 2.9 1.3 1.1
10-year U.S. Treasury yield 4.4 4.4 4.4 4.4 4.4 4.4 3.7 3.6 4.0
Credit spread(a) 2.1 2.3 2.2 1.8 2.2 2.2 3.0 2.8 2.2
Annualized change in S&P 500 1.5 — 6.9 8.7 (0.5) 6.7 (21.7) (7.8) 16.6
(a)Represents the difference between Moody’s Baa‑ rated corporate bond yields and U.S. Treasury yields.
(b)As of June 30, 2026, the reasonable and supportable forecast period is a three year period, beginning in the third quarter of 2026 and ending in the second quarter of 2029.
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The Bancorp’s qualitative adjustments, as an overlay to the quantitative models, resulted in a net increase to the ACL as of June 30, 2026 and these qualitative adjustments were relatively flat when compared to the qualitative factors used in the ACL as of March 31, 2026. These qualitative adjustments primarily reflect the Bancorp’s expectations that additional credit losses may be present in its portfolio loans and leases beyond what is predictable through the use of quantitative models. The ACL as of June 30, 2026 included a qualitative adjustment addressing limitations in the data used to develop the economic forecasts, specifically related to the U.S.-Iran conflict. As of June 30, 2026, there is significant uncertainty regarding the timing and manner in which the conflict may be resolved, including the extent to which developments may differ from the resolution assumed in the Baseline scenario. A prolonged U.S.-Iran conflict may disrupt energy and certain other commodity markets and, as a result, may adversely affect supply chains, increase inflation, widen credit spreads or lower GDP growth expectations. In consideration of these risks, which are beyond those considered in the Baseline scenario, the Bancorp applied a qualitative adjustment to the ACL which resulted in additional allowances, primarily for the commercial and consumer portfolio segments. The qualitative adjustments for the commercial portfolio segment also include additional allowances for certain nonowner-occupied commercial loans secured by real estate, particularly loans secured by office buildings, based on current challenges in the commercial real estate market that are not fully reflected in the Bancorp’s quantitative models.
The Bancorp’s quantitative credit loss models are sensitive to changes in economic forecast assumptions over the reasonable and supportable forecast period. Applying a 100% probability weighting to the Downside scenario rather than using the probability-weighted three scenario approach would result in an increase in the quantitative ACL of approximately $1.9 billion. This sensitivity calculation only reflects the impact of changing the probability weighting of the scenarios in the quantitative credit loss models and excludes any additional considerations associated with the qualitative component of the ACL that might be warranted if probability weights were adjusted.
The following table provides a rollforward of the Bancorp’s ACL:
TABLE 50: Changes in Allowance for Credit Losses
For the three months ended June 30, For the six months ended June 30,
($ in millions) 2026 2025 2026 2025
ALLL:
Balance, beginning of period $ 2,922 2,384 2,253 2,352
Losses charged-off(a)(b) (181) (194) (368) (366)
Recoveries of losses previously charged-off(a)(b) 46 55 89 90
Provision for loan and lease losses 131 167 283 336
Allowance on PCD loans and leases at acquisition (1) — 179 —
Allowance on PSLs at acquisition 1 — 482 —
Balance, end of period $ 2,918 2,412 2,918 2,412
Reserve for unfunded commitments:
Balance, beginning of period $ 232 140 157 134
Provision for (benefit from) the reserve for unfunded commitments (2) 6 73 12
Balance, end of period $ 230 146 230 146
(a)For the three and six months ended June 30, 2026, the Bancorp recorded $3 and $7, respectively, in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements, compared to $5 and $10 for the three and six months ended June 30, 2025, respectively.
(b)Excludes net charge-offs of $111 which were taken at the time of the Comerica acquisition.
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The following table provides an attribution of the Bancorp’s ALLL to portfolio loans and leases:
TABLE 51: Attribution of Allowance for Loan and Lease Losses to Portfolio Loans and Leases
As of ($ in millions) June 30, 2026 December 31, 2025
Attributed ALLL:
Commercial and industrial loans $ 1,142 816
Commercial mortgage loans 511 272
Commercial construction loans 113 80
Commercial leases 22 18
Residential mortgage loans 103 109
Home equity 93 87
Indirect secured consumer loans 321 304
Credit card 149 150
Solar energy installation loans 352 314
Other consumer loans 112 103
Total ALLL $ 2,918 2,253
Portfolio loans and leases:
Commercial and industrial loans $ 85,736 52,749
Commercial mortgage loans 27,196 12,228
Commercial construction loans 8,459 5,316
Commercial leases 3,489 3,269
Residential mortgage loans(a) 19,713 17,652
Home equity 6,929 4,846
Indirect secured consumer loans 18,186 17,964
Credit card 1,683 1,747
Solar energy installation loans 4,314 4,560
Other consumer loans 2,823 2,320
Total portfolio loans and leases $ 178,528 122,651
Attributed ALLL as a percent of respective portfolio loans and leases:
Commercial and industrial loans 1.33 % 1.55
Commercial mortgage loans 1.88 2.22
Commercial construction loans 1.34 1.50
Commercial leases 0.63 0.55
Residential mortgage loans 0.52 0.62
Home equity 1.34 1.80
Indirect secured consumer loans 1.77 1.69
Credit card 8.85 8.59
Solar energy installation loans 8.16 6.89
Other consumer loans 3.97 4.44
Total ALLL as a percent of portfolio loans and leases 1.63 % 1.84
Total ACL as a percent of portfolio loans and leases 1.76 1.96
(a)Includes residential mortgage loans measured at fair value of $102 at June 30, 2026 and $106 at December 31, 2025.
The Bancorp’s ALLL may vary significantly from period to period based on changes in economic conditions, economic forecasts and the composition and credit quality of the Bancorp’s loan and lease portfolio.
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INTEREST RATE AND PRICE RISK MANAGEMENT
Interest rate risk is the risk to earnings or capital arising from movement of interest rates. This risk primarily impacts the Bancorp’s income categories through changes in interest income on earning assets and the cost of interest-bearing liabilities, and through fee items that are related to interest-sensitive activities such as mortgage origination and servicing income and through earnings credits earned on commercial deposits that offset commercial deposit fees. Price risk is the risk to earnings or capital arising from changes in the value of financial instruments and portfolios due to movements in interest rates, volatilities, foreign exchange rates, equity prices and commodity prices. For more information, refer to the Interest Rate and Price Risk Management subsection of Risk Management section of MD&A of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025.
Net Interest Income Sensitivity
As of June 30, 2026, the Bancorp’s interest rate risk exposure is governed by a risk framework that utilizes the change in NII over 12-month and 24-month horizons under parallel and non-parallel increases and decreases in interest rates. Risk appetite thresholds are utilized for scenarios assuming a 200 bps increase and a 200 bps decrease in interest rates over 12-month and 24-month horizons. The Bancorp routinely analyzes various potential and extreme scenarios, including parallel ramps and shocks as well as non-parallel shifts in rates, to assess where risks to net interest income persist or develop as changes in the balance sheet and market rates evolve, and employs key risk indicators and early warning indicators to monitor and manage exposures under these types of scenarios. Additionally, the Bancorp routinely evaluates its exposures to changes in the basis between interest rates.
In order to recognize the risk of noninterest-bearing demand deposit balance migration or attrition in a rising interest rate environment, the Bancorp’s NII sensitivity modeling assumes additional attrition of approximately $1.5 billion of demand deposit balances over a period of 24 months for each 100 bps increase in short-term market interest rates. Similarly, the Bancorp’s NII sensitivity modeling incorporates approximately $1.5 billion of incremental growth in noninterest-bearing deposit balances over 24 months for each 100 bps decrease in short-term market interest rates. The incremental balance attrition and growth are modeled to flow into and out of funding products that reprice in conjunction with short-term market rate changes.
The Bancorp’s NII sensitivity modeling uses beta assumptions which result in weighted-average rising-rate interest-bearing deposit betas at the end of the ramped parallel scenarios of approximately 65%-70% for both a 100 bps and 200 bps increase in rates. In the event of continued rate cuts, this approach assumes a weighted-average falling-rate interest-bearing deposit beta at the end of the ramped parallel scenarios of approximately 55%-60% for both a 100 bps and 200 bps decrease in rates. In falling rate scenarios, deposit rate floors are utilized to ensure modeled deposit rates will not become negative. The Bancorp provides sensitivity analysis in Tables 53 and 54 for key assumptions related to its deposit modeling, including beta and demand deposit balance performance.
The Bancorp continually evaluates the sensitivity of its interest rate risk measures to these important deposit modeling assumptions. The Bancorp also regularly monitors the sensitivity of other important modeling assumptions, such as loan and security prepayments and early withdrawals on fixed-rate customer liabilities.
The following table shows the Bancorp’s estimated NII sensitivity profile and policy limits as of:
TABLE 52: Estimated NII Sensitivity Profile and Policy Limits
June 30, 2026 June 30, 2025
% Change in NII (FTE) Policy Limit % Change in NII (FTE) Policy Limit
Change in Interest Rates (bps) 12 Months 13-24 Months 12 Months 13-24 Months 12 Months 13-24 Months 12 Months 13-24 Months
+200 Ramp over 12 months 0.54 % 2.86 (9.00) (15.00) (3.51) (4.48) (6.00) (7.00)
+100 Ramp over 12 months 0.42 1.87 NA NA (1.71) (2.03) NA NA
-100 Ramp over 12 months (1.08) (3.72) NA NA 0.88 0.65 NA NA
-200 Ramp over 12 months (2.92) (9.72) (9.00) (15.00) 1.29 (0.21) (6.00) (7.00)
Table 52 presents the change in estimated net interest income for 12 month and 13-24 month horizons for alternative interest rate scenarios relative to the net interest income projection for a static rate scenario for those same time horizons. These numbers do not represent a forecast, but are instead risk measures that are monitored to evaluate the consolidated interest rate risk position of the Bancorp. At June 30, 2026, the Bancorp’s NII sensitivity in the rising-rate scenarios is positive in years one and two as interest income is expected to increase more than interest expense primarily due to floating-rate loans repricing faster than interest-bearing deposits. The Bancorp’s NII simulation projects a decrease in NII in year one under both the parallel 100 bps ramp decrease and 200 bps ramp decrease in interest rates driven by an expectation that deposits would reprice slower than earning assets. In year two of these simulations, some deposits have reached their floors, but assets continue to be repriced to lower rates, generating less NII. The changes in the estimated NII sensitivity profile compared to June 30, 2025 were attributable to growth in floating-rate loans and noninterest-bearing deposits primarily due to the Comerica acquisition.
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Tables 53 and 54 provide the sensitivity of the Bancorp’s estimated NII profile at June 30, 2026 to changes to certain deposit balance and deposit repricing sensitivity (beta) assumptions.
The following table includes the Bancorp’s estimated NII sensitivity profile with an immediate $1 billion decrease and an immediate $1 billion increase in demand deposit balances as of June 30, 2026:
TABLE 53: Estimated NII Sensitivity Profile at June 30, 2026 with a $1 Billion Change in Demand Deposit Assumption
% Change in NII (FTE)
Immediate $1 Billion Balance Decrease Immediate $1 Billion Balance Increase
Change in Interest Rates (bps) 12 Months 13-24 Months 12 Months 13-24 Months
+200 Ramp over 12 months 0.03 % 2.28 1.05 3.44
+100 Ramp over 12 months (0.03) 1.40 0.88 2.35
-100 Ramp over 12 months (1.41) (3.99) (0.74) (3.45)
-200 Ramp over 12 months (3.20) (9.89) (2.65) (9.56)
The following table includes the Bancorp’s estimated NII sensitivity profile with a 5% increase and a 5% decrease to the corresponding deposit beta assumptions as of June 30, 2026:
TABLE 54: Estimated NII Sensitivity Profile at June 30, 2026 with Deposit Beta Assumptions Changes
% Change in NII (FTE)
Betas 5% Higher(a) Betas 5% Lower(a)
Change in Interest Rates (bps) 12 Months 13-24 Months 12 Months 13-24 Months
+200 Ramp over 12 months (0.25) % 1.40 1.43 4.55
+100 Ramp over 12 months 0.02 1.13 0.87 2.71
-100 Ramp over 12 months (0.71) (3.05) (1.48) (4.46)
-200 Ramp over 12 months (2.22) (8.44) (3.70) (11.14)
(a)Applies a +/- 5% addition on assumed betas.
Economic Value of Equity Sensitivity
The Bancorp also uses EVE as a measurement tool to govern and manage its interest rate risk exposure. The exposure is governed by a risk framework that uses risk appetite thresholds for scenarios assuming an instantaneous 200 bps increase and a 200 bps decrease in interest rates. The Bancorp routinely analyzes exposures to other interest rate scenarios and employs key risk indicators to monitor and manage exposures.
The following table shows the Bancorp’s estimated EVE sensitivity profile as of:
TABLE 55: Estimated EVE Sensitivity Profile
June 30, 2026 December 31, 2025
Change in Interest Rates (bps) % Change in EVE Policy Limit % Change in EVE Policy Limit
+200 Shock (2.49) % (12.00) (5.12) (12.00)
+100 Shock (0.91) N/A (2.20) N/A
-100 Shock (0.41) N/A 0.69 N/A
-200 Shock (2.90) (12.00) (1.02) (12.00)
The EVE sensitivity is negative in both a +200 bps and +100 bps rising-rate scenario as well as both a -100 bps and -200 bps falling-rate scenario at June 30, 2026. The changes in the estimated EVE sensitivity profile from December 31, 2025 were primarily related to changes in forward interest rate expectations and an increase in interest-bearing and noninterest-bearing deposits reflecting the impact of the Comerica acquisition, partially offset by growth in the investment securities portfolio.
While an instantaneous shift in spot interest rates is used in this analysis to provide an estimate of exposure, the Bancorp believes that a gradual shift in interest rates would have a more modest impact. Since EVE measures the discounted present value of cash flows over the estimated lives of instruments, the change in EVE does not directly correlate to the degree that earnings would be impacted over a shorter time horizon (e.g., the current fiscal year). Further, EVE does not account for factors such as future balance sheet growth, changes in product mix, changes in yield curve relationships and changing product spreads that could mitigate or exacerbate the impact of changes in interest
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rates. The NII simulations and EVE analyses do not necessarily include certain actions that management may undertake to manage risk in response to actual changes in interest rates.
The Bancorp regularly evaluates its exposures to a static balance sheet forecast, basis risks relative to the Prime Rate and various SOFR terms, yield curve twist risks and embedded options risks. In addition, the impacts on NII on an FTE basis and EVE of extreme changes in interest rates are modeled, wherein the Bancorp employs the use of yield curve shocks and environment-specific scenarios.
Use of Derivatives to Manage Interest Rate Risk
An integral component of the Bancorp’s interest rate risk management strategy is its use of derivative instruments to minimize significant fluctuations in earnings caused by changes in market interest rates. Examples of derivative instruments that the Bancorp may use as part of its interest rate risk management strategy include interest rate swaps, interest rate floors, interest rate caps, forward contracts, forward starting interest rate swaps, options, swaptions and TBA securities.
These positions are used to convert the contractual interest rate index of agreed-upon amounts of assets and liabilities (i.e., notional amounts) to another interest rate index, to hedge the exposure to changes in fair value of a recognized asset attributable to changes in the benchmark interest rate or to hedge forecasted transactions for the variability in cash flows attributable to the contractually specified interest rate. The volume, maturity and mix of portfolio swaps change frequently as the Bancorp adjusts its broader interest rate risk management objectives and the balance sheet positions to be hedged.
Additionally, as part of its overall risk management strategy relative to its residential mortgage banking activities, the Bancorp enters into forward contracts accounted for as free-standing derivatives to economically hedge IRLCs that are also considered free-standing derivatives. The Bancorp economically hedges its exposure to residential mortgage loans held for sale through the use of forward contracts and mortgage options as well.
The Bancorp also enters into derivative contracts with major financial institutions to economically hedge market risks assumed in interest rate derivative contracts with commercial customers. Generally, these contracts have similar terms in order to protect the Bancorp from market volatility. Credit risk arises from the possible inability of the counterparties to meet the terms of their contracts, which the Bancorp minimizes through collateral arrangements, approvals, limits and monitoring procedures. The Bancorp has risk limits and internal controls in place to help ensure excessive risk is not being taken in providing this service to customers. These controls include an independent determination of interest rate volatility and potential future exposure on these contracts and counterparty credit approvals performed by independent risk management.
For further information, including the notional amount and fair values of these derivatives, refer to Note 12 of the Notes to Condensed Consolidated Financial Statements. Additionally, for information on residential mortgage servicing rights and price risk, foreign currency risk, and commodity risk, refer to the Interest Rate and Price Risk Management subsection of Risk Management section of MD&A of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025.
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LIQUIDITY RISK MANAGEMENT
The goal of liquidity risk management is to maintain adequate funds to meet changes in the balance sheet, contractual obligations and risk arising from off-balance-sheet exposures. A summary of certain obligations and commitments to make future payments under contracts is included in Note 15 of the Notes to Condensed Consolidated Financial Statements. For more information on how liquidity risk is monitored and managed for both Fifth Third Bancorp and its subsidiaries, refer to the Liquidity Risk Management subsection of the Risk Management section of MD&A of the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025.
Sources of Funds
Primary sources of funds include revenue from noninterest income, cash flows from loan and lease payments, payments from securities including sales and maturities, the sale or securitization of loans and leases, funds generated by core deposits and the use of wholesale borrowings.
The available-for-sale debt and other securities and held-to-maturity securities portfolios had a fair value of $62.7 billion at June 30, 2026. From these portfolios, $7.5 billion in principal and interest payments are expected to be received in the next 12 months and an additional $8.3 billion is expected to be received in the next 13 to 24 months. For further information on the investment securities portfolio, refer to the Investment Securities subsection of the Balance Sheet Analysis section of MD&A.
Asset-driven liquidity is provided by the ability to monetize loans, leases and investment securities through a variety of channels, including repurchase agreements, outright sales, securitizations or pledging to secured borrowing providers. For the three and six months ended June 30, 2026, the Bancorp sold loans and leases totaling $2.0 billion and $3.3 billion, respectively, compared to $1.3 billion and $2.4 billion during the three and six months ended June 30, 2025, respectively. For further information, refer to Note 11 of the Notes to Condensed Consolidated Financial Statements.
Core deposits have historically provided a sizable source of relatively stable and low-cost funds. Average core deposits and average shareholders’ equity funded 88% and 89% of the Bancorp’s average total assets for the three and six months ended June 30, 2026, respectively, and 86% for both the three and six months ended June 30, 2025. In addition to core deposit funding, the Bancorp also accesses a variety of other short-term and long-term funding sources, which include the use of the FHLB system. Management does not rely on any one source of liquidity and manages availability in response to changing balance sheet needs.
In June of 2026, the Board of Directors authorized $15.0 billion of debt or other securities for issuance, all of which remained available for issuance as of June 30, 2026. The Bancorp is authorized to file any necessary registration statements with the SEC to permit ready access to the public securities markets; however, access to these markets may depend on market conditions. In January 2026, under the Board of Directors’ prior authorization, the Bancorp issued and sold $2.0 billion of fixed-rate/floating-rate senior notes. In June 2026, under the Board of Directors’ prior authorization, the Bancorp completed the previously announced exchange offer with respect to the $550 million of fixed-rate senior notes and the $1.0 billion of fixed-rate/floating-rate senior notes originally issued by Comerica Incorporated and assumed by Fifth Third Financial Corporation, as successor by merger, pursuant to which approximately $335 million and $938 million, respectively, of such notes were exchanged for new senior notes issued by the Bancorp and cash consideration. For further information, refer to Note 14 of the Notes to Condensed Consolidated Financial Statements.
As of June 30, 2026, the Bank’s global bank note program had a borrowing capacity of $25.0 billion, of which $20.9 billion was available for issuance. Additionally, at June 30, 2026, the Bank had approximately $91.1 billion of borrowing capacity available through secured borrowing sources, including the FRB and the FHLB.
Current Liquidity Position
The Bancorp maintains a strong liquidity profile driven by strong core deposit funding and $141 billion in readily available liquidity at June 30, 2026. Refer to the Deposits subsection of the Balance Sheet Analysis section of MD&A for more information regarding the Bancorp’s deposit portfolio characteristics. The Bancorp maintains a liquidity profile focused on core deposit and stable long-term funding sources, while supplementing with a variety of secured and unsecured wholesale funding sources across the maturity spectrum, which allows for the effective management of concentration and rollover risk. The investment securities portfolio remains highly concentrated in liquid and readily marketable instruments and is a significant source of secured borrowing capacity via several monetization channels. As part of its liquidity management activities, the Bancorp maintains collateral at its secured funding providers to ensure immediate availability of funding. Additionally, the Bancorp routinely executes test trades to ensure operational readiness and market depth associated with its secured funding sources.
As of June 30, 2026, the Bancorp (parent company) had sufficient liquidity to meet contractual obligations and all preferred and common dividends without accessing the capital markets or receiving upstream dividends from the Bank subsidiary for 27 months.
Credit Ratings
The cost and availability of financing to the Bancorp and Bank are impacted by its credit ratings. A downgrade to the credit ratings of the Bancorp or the Bank could affect their ability to access the credit markets and increase borrowing costs, thereby adversely impacting their
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financial condition and liquidity. Key factors in maintaining high credit ratings include a stable and diverse earnings stream, strong credit quality, strong capital ratios and diverse funding sources, in addition to disciplined liquidity monitoring procedures.
Credit ratings are summarized in Table 56. The ratings reflect the view of each rating agency on the capacity of the Bancorp and the Bank to meet financial commitments. As an investor, you should be aware that a security rating is not a recommendation to buy, sell or hold securities, that it may be subject to revision or withdrawal at any time by the assigning rating organization and that each rating should be evaluated independently of any other rating. Additional information on the credit rating ranking within the overall classification system is located on the website of each credit rating agency.
TABLE 56: Agency Ratings
As of August 4, 2026 Moody’s Standard and Poor’s Fitch DBRS Morningstar
Fifth Third Bancorp:
Short-term borrowings No rating A-2 F1 R-1L
Senior debt Baa1 BBB+ A- A
Subordinated debt Baa1 BBB BBB+ AL
Fifth Third Bank, National Association:
Short-term borrowings P-2 A-2 F1 R-1M
Short-term deposit P-1 No rating F1 No rating
Long-term deposit A1 No rating A+ AH
Senior debt A3 A- A- AH
Subordinated debt A3 BBB+ BBB+ A
Rating Agency Outlook for Fifth Third Bancorp and Fifth Third Bank, National Association Negative Stable Stable Positive
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CAPITAL MANAGEMENT
Management regularly reviews capital levels to help ensure it is appropriately positioned under various operating environments. The Bancorp has established a Capital Committee which is responsible for making capital plan recommendations to management. These recommendations are reviewed by the ERMC and the capital plan is approved by the Board of Directors. The Capital Committee is responsible for execution and oversight of the capital actions of the capital plan.
Regulatory Capital Ratios
The Basel III Final Rule sets minimum regulatory capital ratios as well as defines the measure of well-capitalized for insured depository institutions. The following table presents these requirements as well as the actual ratios and amounts for the Bancorp and Bank as of:
TABLE 57: Regulatory Capital
Regulatory Ratio Requirements June 30, 2026 December 31, 2025
($ in millions) Minimum Well-Capitalized Ratio Amount Ratio Amount
CET1 risk-based capital:
Fifth Third Bancorp 4.50 % N/A 9.93 % $ 24,508 10.81 % $ 18,099
Fifth Third Bank, National Association 4.50 6.50 11.70 28,723 13.09 21,766
Tier 1 risk-based capital:
Fifth Third Bancorp 6.00 6.00 10.81 26,690 11.87 19,869
Fifth Third Bank, National Association 6.00 8.00 11.70 28,723 13.09 21,766
Total risk-based capital:
Fifth Third Bancorp 8.00 10.00 12.50 30,863 13.78 23,066
Fifth Third Bank, National Association 8.00 10.00 12.95 31,794 14.33 23,833
Leverage:
Fifth Third Bancorp 4.00 N/A 9.20 26,690 9.41 19,869
Fifth Third Bank, National Association 4.00 5.00 9.99 28,723 10.41 21,766
Total risk-weighted assets:
Fifth Third Bancorp 246,820 167,431
Fifth Third Bank, National Association 245,487 166,265
Quarterly average assets for leverage:(a)
Fifth Third Bancorp 290,062 211,054
Fifth Third Bank, National Association 287,493 209,015
(a)Quarterly average assets are a component of the leverage ratio and, for this purpose, do not include goodwill or any other assets that the U.S. banking agencies determine should be deducted from Tier 1 capital.
The following table presents additional capital ratios of the Bancorp as of:
TABLE 58: Additional Capital Ratios
June 30, 2026 December 31, 2025
Quarterly average total Bancorp shareholders’ equity as a percent of average assets 11.50 % 10.11
Tangible equity as a percent of tangible assets(a) 9.04 9.28
Tangible common equity as a percent of tangible assets, excluding AOCI(a) 8.30 8.46
Tangible common equity as a percent of tangible assets, including AOCI(a) 7.29 7.14
(a)These are non-GAAP measures. For further information, refer to the Non-GAAP Financial Measures section of MD&A.
On March 19, 2026, the U.S. banking agencies issued notices of proposed rulemaking to revise the U.S. regulatory capital framework to finalize the post-crisis Basel III reforms. Comments were due by June 18, 2026 with final implementation expected to include a multi-year transition. The Bancorp and the Bank would not be required to adopt the new expanded risk‑based approach under the proposed rules, although the proposed rules would permit an election to adopt the expanded risk‑based approach. However, if implemented as proposed, the rules would impact how the Bancorp and the Bank calculate capital requirements. Effective dates for the proposed rules were not included in the proposal. The Bancorp is in the process of evaluating this proposed rulemaking and assessing its potential impact.
Capital Planning
The Bancorp maintains a comprehensive process for managing capital that considers the current and forward-looking macroeconomic and regulatory environments and makes capital distributions that are consistent with FRB requirements and the stress capital buffer requirement. Under the Enhanced Prudential Standards tailoring rule, the Bancorp will transition to Category III standards during the third quarter of 2026, as its trailing four quarter average of total consolidated assets exceeded the $250 billion threshold as of June 30, 2026. The Bancorp will continue to be required to develop and maintain an annual capital plan, which must be approved by the Board of Directors, however, as a Category III institution, it will transition to annual supervisory stress testing, including the recalibration of its stress capital buffer, from the
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Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Category IV biennial requirement. Additionally, the Bancorp was subject to the 2026 supervisory stress test conducted by the FRB and submitted the Board-approved capital plan and information contained in Schedule C - Regulatory Capital Instruments, which was inclusive of impacts related to the Comerica acquisition, as required, by the April 5, 2026 deadline.
Issuance of Stock
In connection with the acquisition of Comerica, on February 1, 2026, the Bancorp issued approximately 240 million shares of its common stock to holders of Comerica common stock as of the acquisition date, representing a value per common share of $93.73, based on the $50.22 closing price of Fifth Third Bancorp’s common stock on January 30, 2026. Fractional shares were not issued and were instead paid in cash. Upon closing of the transaction, all shares of Comerica common stock were cancelled and retired. Additionally, on February 1, 2026, the Bancorp issued 16,000,000 depository shares, representing 400,000 shares of 6.875% fixed-rate reset non-cumulative perpetual preferred stock, Series M to the holders of Comerica’s 6.875% fixed-rate reset non-cumulative perpetual preferred stock, Series B that were outstanding on January 30, 2026. Each Series M share has a $1,000 liquidation preference and accrues dividends on a non-cumulative quarterly basis, initially beginning on January 1, 2026 with a first dividend payment date of April 1, 2026. Subject to any required regulatory approval, the Bancorp may redeem the Series M preferred shares at its option, in whole or in part, on any dividend payment date on or after October 1, 2030 and may redeem, in whole but not in part, within 90 days following a regulatory capital event. The Series M preferred shares are not convertible into Bancorp common shares or any other securities.
Dividend Policy and Stock Repurchase Program
The Bancorp’s common stock dividend policy and stock repurchase program reflect its earnings outlook, desired payout ratios, the need to maintain adequate capital levels, the ability of its subsidiaries to pay dividends and the need to comply with safe and sound banking practices as well as meet regulatory requirements and expectations. The Bancorp declared dividends per common share of $0.40 and $0.37 for the three months ended June 30, 2026 and 2025, respectively, and $0.80 and $0.74 for the six months ended June 30, 2026 and 2025, respectively.
The following table summarizes the monthly share repurchase activity for the three months ended June 30, 2026:
TABLE 59: Share Repurchases
Period Total Numberof Shares Purchased(a) Average Price Paid per Share Total Number of Shares Purchased as a Part of Publicly Announced Plans or Programs Maximum Number ofShares that May Yet BePurchased under the Plans or Programs(b)
April 1 - April 30, 2026 202,391 $ 48.48 — 93,070,648
May 1 - May 31, 2026 47,265 49.50 — 93,070,648
June 1 - June 30, 2026 37,927 55.19 — 93,070,648
Total 287,583 $ 49.54 — 93,070,648
(a) Shares repurchased during the second quarter of 2026 were in connection with various employee compensation plans. These purchases do not count against the maximum number of shares that may yet be purchased under the Board of Directors’ authorization.
(b) On June 13, 2025, the Bancorp’s Board of Directors authorized management to purchase 100 million shares of the Bancorp’s common stock through the open market or in any private party transactions. This authorization did not include specific targets or an expiration date.
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