10-QPeriod: Q1 FY2026

FIFTH THIRD BANCORP Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 5, 2026For Securities:FITBFITBOFITBPFITB-PIFITB-PMFITB-PAFITBIFITB-PK

Summary

Fifth Third Bancorp (FITB) reported its first quarter 2026 financial results, marked by the significant acquisition of Comerica Incorporated on February 1, 2026. This integration has substantially impacted the bank's financial performance, leading to a considerable increase in total assets, loans, deposits, and noninterest expenses. While net interest income saw a substantial increase (33% on an FTE basis), primarily driven by the acquisition and lower funding costs, net income available to common shareholders declined by 73% year-over-year to $128 million, resulting in diluted EPS of $0.15. This decline is largely attributable to a significant increase in noninterest expense (84%), which includes $635 million in direct merger-related costs and two months of operating activity from Comerica. The provision for credit losses also rose by 30%, influenced by increased reserves for unfunded commitments related to the acquisition and a qualitative adjustment for economic uncertainty. Despite these headwinds, key noninterest income streams like commercial payments and wealth and asset management showed strong growth, benefiting from the inclusion of Comerica's operations. The bank's capital ratios remain strong, though the proposed Basel III reforms are being evaluated for potential impacts. FITB continues to focus on its core deposit base as a stable funding source and is actively managing its liquidity and risk profiles post-acquisition.

Key Highlights

  • 1Total assets grew significantly to $297 billion following the $12.7 billion acquisition of Comerica Incorporated, completed on February 1, 2026.
  • 2Net interest income on an FTE basis increased by 33% to $1.9 billion, driven by higher interest-earning assets from the acquisition and lower funding costs.
  • 3Net income available to common shareholders decreased by 73% to $128 million, with diluted EPS falling to $0.15, impacted by substantial merger-related expenses.
  • 4Noninterest expense increased by 84% to $2.4 billion, largely due to $635 million in direct merger-related costs and the inclusion of two months of Comerica's operating expenses.
  • 5The provision for credit losses increased by 30% to $227 million, reflecting higher ALLL due to the acquisition and an economic uncertainty adjustment.
  • 6Key noninterest income segments like commercial payments (up 42%) and wealth and asset management (up 35%) saw strong growth, benefiting from the acquisition.
  • 7The bank's Common Equity Tier 1 (CET1) ratio stood at 9.89% as of March 31, 2026, a slight decrease from 10.43% in the prior year, with the bank evaluating proposed Basel III capital framework changes.

Frequently Asked Questions

The primary driver for the substantial increase in Fifth Third Bancorp's assets and liabilities is the completion of the acquisition of Comerica Incorporated on February 1, 2026. This transaction significantly expanded the bank's balance sheet through the assumption of Comerica's assets and liabilities.

The Comerica acquisition has had a mixed impact on profitability. While net interest income increased significantly due to higher interest-earning assets and lower funding costs, net income available to common shareholders decreased substantially year-over-year. This reduction was primarily caused by a large increase in noninterest expenses, including significant merger-related costs and the operating expenses of the acquired entity.

Fifth Third Bancorp reported an increase in the provision for credit losses, driven by higher allowances for unfunded commitments related to the Comerica acquisition and a qualitative adjustment reflecting economic uncertainty, partly due to the U.S.-Iran conflict. While the ALLL as a percentage of portfolio loans and leases decreased, the overall provision expense rose, indicating a cautious stance on credit quality amidst economic uncertainties.

Fifth Third Bancorp maintained strong regulatory capital ratios as of March 31, 2026. The bank is actively evaluating the recently proposed Basel III capital framework reforms and assessing their potential impact. The acquisition of Comerica is expected to shift Fifth Third into a Category III banking organization by the end of 2026, requiring adherence to different regulatory standards.