Why did reported EPS swing so much between 1Q26 and 2Q26?

1Q26 was depressed by $735 million of pre-tax items, including $635 million of merger-related expenses and an $83 million Day 1 ACL build tied to the Comerica acquisition. 2Q26 carried $203 million of merger-related charges, bringing reported EPS to $0.83. Adjusted EPS was $0.98 in 1Q26 (per the adjusted net income figures) versus $1.02 in 2Q26, so the underlying trajectory is steadier than reported results suggest.

Is the Comerica integration on track?

Management says yes. The systems conversion is scheduled for Labor Day weekend 2026, the final step to unlock the full $850 million annualized expense synergy run-rate, which is expected in 4Q26. Year-to-date merger-related charges are about 65% of the expected full-year total, consistent with the integration timeline. Revenue synergies are emerging, including $2.5 billion of consumer deposits from the Comerica Southwest campaign.

Are rising nonperforming assets a concern?

The NPA ratio edged up to 0.60% from 0.57% and nonaccrual loans rose to $1.04 billion from $960 million, driven by consumer and commercial growth. The ACL covers nonperforming loans at 303%, and charge-offs fell, so the increase is modest. Investors should monitor whether the trend in nonaccruals continues, especially given the 30–89 day delinquency spike earlier in the year that has since reversed.

What is the 3Q26 outlook?

Management guides to net interest income up 2–2.5%, noninterest income up 1–3%, and adjusted noninterest expense down 1–2% from 2Q26 baselines. The net charge-off ratio is expected at 30–35 bps and the effective tax rate at 22.5%. Full-year guidance includes NII of $8.74–8.80 billion and a net charge-off ratio of 30–40 bps. These forecasts assume a 4.00% year-end Fed funds rate.

When might capital return to shareholders?

The filing reports no share repurchases in the first half of 2026, and capital was directed to the Comerica acquisition and merger-related costs. The regular quarterly dividend remained $0.40 per share. Preferred dividends are scheduled at roughly $38–39 million per quarter. The filing does not announce a buyback authorization, so resumption timing is unclear; CET1 at 9.93% and the Category III transition may shape management's decision.

FITB 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed July 17, 2026. Cited figures are marked; the original filing is the authoritative source.

Fifth Third Bancorp (FITB) reported second quarter 2026 results on July 17, 2026, with reported diluted EPS of $0.83^a (net income available to common shareholders of $763 million) versus $0.15 in 1Q26 and $0.88 a year ago.

Adjusted diluted EPS was $1.02^b after excluding $0.19 of net negative items, primarily $155 million after-tax of merger-related charges tied to the Comerica acquisition. The year-over-year comparison is distorted by the Comerica transaction, which closed February 1, 2026, and added a full quarter of balance sheet and expense in 2Q26. Total assets reached $300 billion, and the company formally became a Category III institution.

Net interest income (FTE) rose 14% sequentially to $2.22 billion^c, with net interest margin up 6 bps to 3.36%, and adjusted efficiency improved to 57.1% from 61.9%. Credit quality improved: net charge-offs fell to 0.30% (lowest since 2Q23) from 0.37% in 1Q26, and the provision for credit losses dropped to $129 million from $227 million, which had included an $83 million Day 1 Comerica allowance build. The NPA ratio rose modestly to 0.60% from 0.57%, with nonaccrual loans up to $1.04 billion, so investors should watch the trend in nonperforming balances even though charge-offs are low.

Fee income also grew, with noninterest income excluding certain items up 13% sequentially to $1.04 billion^d, led by wealth management, commercial payments, and capital markets. Management expects the full $850 million expense synergy run-rate by 4Q26, contingent on the Labor Day weekend systems conversion. Capital is a mixed picture.

CET1 ended at 9.93%, up 4 bps sequentially, but the year-to-date decline reflects Comerica-related impacts and $933 million of pre-tax merger charges. No share repurchases occurred in the first half of 2026.

Tangible book value per share rose to $23.15 from $22.88, aided by AOCI accretion. Management's 3Q26 guidance calls for net interest income up 2–2.5%, noninterest income up 1–3%, and adjusted noninterest expense down 1–2% from the 2Q26 baseline, with a net charge-off ratio of 30–35 bps.

02—Key points

Key Highlights

Reported diluted EPS of $0.83 vs. $0.15 in 1Q26 and $0.88 in 2Q25; adjusted EPS of $1.02 excludes $0.19 of items, mainly $155M after-tax merger charges
Net interest margin expanded 6 bps sequentially to 3.36%; NII (FTE) rose 14% sequentially to $2.22B, largely from the full-quarter Comerica contribution
Net charge-off ratio improved to 0.30% from 0.37%, the lowest since 2Q23; provision fell to $129M from $227M
Adjusted efficiency ratio improved 480 bps sequentially to 57.1%; adjusted noninterest expense rose 5% sequentially, reflecting integration and deposit campaign spend
Noninterest income excluding certain items rose 13% sequentially to $1.04B, driven by wealth management, commercial payments, and capital markets
CET1 ratio of 9.93% (up 4 bps sequentially); no share repurchases in 1H26; TBV per share up to $23.15 from $22.88
Total assets surpassed $300B and the company became a Category III institution; NPA ratio rose to 0.60% from 0.57%

03—Questions

Frequently Asked Questions

Why did reported EPS swing so much between 1Q26 and 2Q26?
1Q26 was depressed by $735 million of pre-tax items, including $635 million of merger-related expenses and an $83 million Day 1 ACL build tied to the Comerica acquisition. 2Q26 carried $203 million of merger-related charges, bringing reported EPS to $0.83. Adjusted EPS was $0.98 in 1Q26 (per the adjusted net income figures) versus $1.02 in 2Q26, so the underlying trajectory is steadier than reported results suggest.
Is the Comerica integration on track?
Management says yes. The systems conversion is scheduled for Labor Day weekend 2026, the final step to unlock the full $850 million annualized expense synergy run-rate, which is expected in 4Q26. Year-to-date merger-related charges are about 65% of the expected full-year total, consistent with the integration timeline. Revenue synergies are emerging, including $2.5 billion of consumer deposits from the Comerica Southwest campaign.
Are rising nonperforming assets a concern?
The NPA ratio edged up to 0.60% from 0.57% and nonaccrual loans rose to $1.04 billion from $960 million, driven by consumer and commercial growth. The ACL covers nonperforming loans at 303%, and charge-offs fell, so the increase is modest. Investors should monitor whether the trend in nonaccruals continues, especially given the 30–89 day delinquency spike earlier in the year that has since reversed.
What is the 3Q26 outlook?
Management guides to net interest income up 2–2.5%, noninterest income up 1–3%, and adjusted noninterest expense down 1–2% from 2Q26 baselines. The net charge-off ratio is expected at 30–35 bps and the effective tax rate at 22.5%. Full-year guidance includes NII of $8.74–8.80 billion and a net charge-off ratio of 30–40 bps. These forecasts assume a 4.00% year-end Fed funds rate.
When might capital return to shareholders?
The filing reports no share repurchases in the first half of 2026, and capital was directed to the Comerica acquisition and merger-related costs. The regular quarterly dividend remained $0.40 per share. Preferred dividends are scheduled at roughly $38–39 million per quarter. The filing does not announce a buyback authorization, so resumption timing is unclear; CET1 at 9.93% and the Category III transition may shape management's decision.

04—Continue

← View all 8-K filings