Fifth Third Reports Fourth Quarter 2023 Diluted Earnings Per Share of $0.72

Strong capital accretion and continued to grow deposits and improve liquidity

Reported results included a negative $0.27 impact from certain items on page 2 of the earnings release

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


 

 

 

 

 

 

 

Key Financial Data

 

 

 

Key Highlights

 

 

 

 

 

 

 

 

$ in millions for all balance sheet and income statement items

 

 

 

 

 

4Q23

3Q23

4Q22

Stability:

  • Average deposits increased 2% compared to 3Q23; increased 5% compared to 4Q22
  • Maintained full Category 1 LCR compliance during the quarter and achieved a loan-to-core deposit ratio of 72%
  • Transferred 23% of AFS securities portfolio to HTM on January 3, 2024
  • CET1 capital increased 49 bps sequentially to 10.29% reflecting strong earnings power and balance sheet optimization efforts
  • NCO ratio declined 9 bps compared to 3Q23

Profitability:

Compared to 3Q23

  • Adjusted ROTCE ex. AOCI(a) of 16.8% increased 90 basis points
  • Adjusted efficiency ratio(a)of 55.3%
  • Tangible book value per share (including AOCI) increased 28%

Growth:

  • Generated consumer household growth of 3% compared to 4Q22
  • Opened 19 branches during the quarter, 18 of which are in high-growth Southeast markets

 

 

 

 

 

 

 

Income Statement Data

 

 

 

 

Net income available to common shareholders

$492

 

$623

 

$699

 

 

Net interest income (U.S. GAAP)

1,416

 

1,438

 

1,577

 

 

Net interest income (FTE)(a)

1,423

 

1,445

 

1,582

 

 

Noninterest income

744

 

715

 

735

 

 

Noninterest expense

1,455

 

1,188

 

1,218

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

Earnings per share, basic

$0.72

 

$0.91

 

$1.01

 

 

Earnings per share, diluted

0.72

 

0.91

 

1.01

 

 

Book value per share

25.04

 

21.19

 

22.26

 

 

Tangible book value per share(a)

17.64

 

13.76

 

14.83

 

 

 

 

 

 

 

Balance Sheet & Credit Quality

 

 

 

 

Average portfolio loans and leases

$118,858

 

$121,630

 

$121,371

 

 

Average deposits

169,447

 

165,644

 

161,061

 

 

Accumulated other comprehensive loss

(4,487

)

(6,839

)

(5,110

)

 

Net charge-off ratio(b)

0.32

%

0.41

%

0.22

%

 

Nonperforming asset ratio(c)

0.59

 

0.51

 

0.44

 

 

 

 

 

 

 

Financial Ratios

 

 

 

 

Return on average assets

0.98

%

1.26

%

1.42

%

 

Return on average common equity

12.9

 

16.3

 

18.8

 

 

Return on average tangible common equity(a)

19.8

 

24.7

 

29.2

 

 

CET1 capital(d)(e)

10.29

 

9.80

 

9.28

 

 

Net interest margin(a)

2.85

 

2.98

 

3.35

 

 

Efficiency(a)

67.2

 

55.0

 

52.6

 

 

Other than the Quarterly Financial Review tables beginning on page 14 of the earnings release, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Regulation S-K that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis.

 

 

From Tim Spence, Fifth Third Chairman, President and CEO:

 

 

Fifth Third delivered strong operating results in 2023 while continuing to successfully navigate the challenging environment. We generated record revenue while prudently managing expenses and continuing to invest in our businesses. Our credit metrics reflect disciplined credit risk management, with net charge-offs for the quarter in-line with our expectations.

In the fourth quarter, we successfully completed our risk-weighted assets initiative and accreted nearly 50 basis points of CET1 capital. We generated another quarter of strong deposit growth, with average deposits up 5% compared to the year-ago quarter while the industry declined 3%. Additionally, we maintained full Category 1 LCR compliance during the quarter.

We continued to invest for growth by opening 19 branches during the quarter, 18 of which are in our high-growth Southeast markets, and generated consumer household growth of 3% compared to the prior year. Our new quality middle market relationships in commercial continued to grow at a record pace.

While the economic and regulatory environments remain uncertain, we remain well positioned to respond to a range of potential economic and regulatory outcomes. We will continue to follow our guiding principles of stability, profitability, and growth – in that order.

 

Income Statement Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions, except per share data)

For the Three Months Ended

 

 

% Change

 

 

 

December

 

September

 

December

 

 

 

 

 

 

 

2023

 

2023

 

2022

 

Seq

 

Yr/Yr

 

 

Condensed Statements of Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (NII)(a)

$1,423

 

$1,445

 

$1,582

 

(2)%

 

(10)%

 

 

Provision for credit losses

55

 

119

 

180

 

(54)%

 

(69)%

 

 

Noninterest income

744

 

715

 

735

 

4%

 

1%

 

 

Noninterest expense

1,455

 

1,188

 

1,218

 

22%

 

19%

 

 

Income before income taxes(a)

$657

 

$853

 

$919

 

(23)%

 

(29)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent adjustment

$7

 

$7

 

$5

 

 

40%

 

 

Applicable income tax expense

120

 

186

 

177

 

(35)%

 

(32)%

 

 

Net income

$530

 

$660

 

$737

 

(20)%

 

(28)%

 

 

Dividends on preferred stock

38

 

37

 

38

 

3%

 

 

 

Net income available to common shareholders

$492

 

$623

 

$699

 

(21)%

 

(30)%

 

 

Earnings per share, diluted

$0.72

 

$0.91

 

$1.01

 

(21)%

 

(29)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fifth Third Bancorp (NASDAQ®: FITB) today reported fourth quarter 2023 net income of $530 million compared to net income of $660 million in the prior quarter and $737 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $492 million, or $0.72 per diluted share, compared to $623 million, or $0.91 per diluted share, in the prior quarter and $699 million, or $1.01 per diluted share, in the year-ago quarter.

 

 

 

 

 

 

 

Diluted earnings per share impact of certain item(s) – 4Q23

 

 

 

 

 

 

 

 

 

 

(after-tax impact; $ in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment (noninterest expense)(f)

$(172)

 

 

 

 

Valuation of Visa total return swap (noninterest income)(f)

(17)

 

 

 

 

Fifth Third Foundation contribution (noninterest expense)(f)

(12)

 

 

 

 

Restructuring severance expense (noninterest expense)(f)

(4)

 

 

 

 

Income tax benefit associated with resolution of certain acquisition related tax matters

17

 

 

 

 

After-tax impactof certain item(s)

$(188)

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share impact of certain item(s)1

$(0.27)

 

 

 

 

 

 

 

 

 

 

1Diluted earnings per share impact reflects 687.729 million average diluted shares outstanding

 

 

 

 

 

 

 

 

Reported full year 2023 net income was $2.3 billion compared to full year 2022 net income of $2.4 billion. Full year 2023 net income available to common shareholders was $2.2 billion, or $3.22 per diluted share, compared to 2022 full year net income available to common shareholders of $2.3 billion, or $3.35 per diluted share.

 

Net Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(FTE; $ in millions)(a)

For the Three Months Ended

 

 

% Change

 

 

 

December

 

September

 

December

 

 

 

 

 

 

 

2023

 

2023

 

2022

 

Seq

 

Yr/Yr

 

 

Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$2,655

 

 

$2,536

 

 

$2,080

 

 

5%

 

28%

 

 

Interest expense

1,232

 

 

1,091

 

 

498

 

 

13%

 

147%

 

 

Net interest income (NII)

$1,423

 

 

$1,445

 

 

$1,582

 

 

(2)%

 

(10)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Yield/Rate Analysis

 

 

 

 

 

 

 

 

 

bps Change

 

 

Yield on interest-earning assets

5.31%

 

 

5.23%

 

 

4.40%

 

 

8

 

91

 

 

Rate paid on interest-bearing liabilities

3.34%

 

 

3.10%

 

 

1.56%

 

 

24

 

178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest rate spread

1.97%

 

 

2.13%

 

 

2.84%

 

 

(16)

 

(87)

 

 

Net interest margin (NIM)

2.85%

 

 

2.98%

 

 

3.35%

 

 

(13)

 

(50)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NII decreased $22 million, or 2%, compared to the prior quarter. During the quarter, the risk-weighted asset reduction initiative was completed, and strong core deposit growth continued. Balance sheet positioning and deposit performance continue to provide flexibility in managing through a range of uncertain economic and regulatory environments. The impacts of increasing deposit costs due to higher average market rates and continued competition were partially offset by improved loan yields and the funding benefits from the core deposit balance growth. Compared to the prior quarter, NIM decreased 13 bps, reflecting the impact of higher cash balances due to the combined impact of the decrease in average loans and the growth in core deposits. NIM will continue to be impacted by the decision to carry additional liquidity, with the combination of cash and due from banks and other short-term investments exceeding $25 billion at quarter-end.

Compared to the year-ago quarter, NII decreased $159 million, or 10%, reflecting the impact of the deposit mix shift from demand to interest-bearing accounts and continued deposit repricing dynamics, partially offset by higher loan yields. Compared to the year-ago quarter, NIM decreased 50 bps, reflecting the impact of higher market rates and their effects on deposit pricing and the decision to carry additional liquidity, partially offset by higher loan yields.

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

($ in millions)

For the Three Months Ended

 

% Change

 

 

 

December

 

September

December

 

 

 

 

 

 

 

2023

 

2023

 

2022

 

Seq

 

Yr/Yr

 

 

Noninterest Income

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

$146

 

$149

 

$140

 

(2)%

 

4%

 

 

Commercial banking revenue

163

 

154

 

158

 

6%

 

3%

 

 

Mortgage banking net revenue

66

 

57

 

63

 

16%

 

5%

 

 

Wealth and asset management revenue

147

 

145

 

139

 

1%

 

6%

 

 

Card and processing revenue

106

 

104

 

103

 

2%

 

3%

 

 

Leasing business revenue

46

 

58

 

58

 

(21)%

 

(21)%

 

 

Other noninterest income

54

 

55

 

72

 

(2)%

 

(25)%

 

 

Securities gains (losses), net

15

 

(7

)

2

 

NM

 

650%

 

 

Securities gains, net – non-qualifying hedges

 

 

 

 

 

 

 

 

 

 

on mortgage servicing rights

1

 

 

 

NM

 

NM

 

 

Total noninterest income

$744

 

$715

 

$735

 

4%

 

1%

 

 

 

 

 

 

 

 

 

 

 

 

Reported noninterest income increased $29 million, or 4%, from the prior quarter, and increased $9 million, or 1%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans that are primarily offset in compensation and benefits expense.

 

Noninterest Income excluding certain items

 

($ in millions)

For the Three Months Ended

 

 

 

 

 

 

 

 

December

 

September

 

 

December

 

 

% Change

 

 

2023

 

2023

 

 

2022

 

 

Seq

 

Yr/Yr

 

 

Noninterest Income excluding certain items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income (U.S. GAAP)

$744

 

 

$715

 

 

$735

 

 

 

 

 

 

 

Valuation of Visa total return swap

22

 

 

10

 

 

38

 

 

 

 

 

 

 

Branch impairment charges

 

 

 

 

6

 

 

 

 

 

 

 

Securities (gains) losses, net

(15)

 

 

7

 

 

(2)

 

 

 

 

 

 

 

Noninterest income excluding certain items(a)

$751

 

 

$732

 

 

$777

 

 

3%

 

(3)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income excluding certain items increased $19 million, or 3%, from the prior quarter, and decreased $26 million, or 3%, from the year-ago quarter.

Compared to the prior quarter, service charges on deposits decreased $3 million, or 2%, primarily reflecting a decrease in consumer deposit fees due to the elimination of extended overdraft fees. Commercial banking revenue increased $9 million, or 6%, primarily reflecting higher institutional brokerage revenue, business lending fees, and corporate bond fees, partially offset by a decrease in loan syndication revenue. Mortgage banking net revenue increased $9 million, or 16%, primarily reflecting a decrease in MSR asset decay and an increase in MSR net valuation adjustments, which had a $2 million gain in the fourth quarter compared to a $2 million loss in the prior quarter. Wealth and asset management revenue increased $2 million, or 1%, primarily driven by higher brokerage fees, partially offset by lower personal asset management revenue. Card and processing revenue increased $2 million, or 2%, primarily driven by higher interchange revenue. Leasing business revenue decreased $12 million, or 21%, primarily reflecting lower lease remarketing revenue. Other noninterest income results were driven by the recognition of tax receivable agreement revenue of $22 million in the current quarter.

Compared to the year-ago quarter, service charges on deposits increased $6 million, or 4%, reflecting an increase in commercial treasury management fees, partially offset by a decrease in consumer deposit fees. Commercial banking revenue increased $5 million, or 3%, primarily driven by higher institutional brokerage revenue, corporate bond fees and business lending fees, partially offset by lower M&A advisory revenue and client financial risk management revenue. Mortgage banking net revenue increased $3 million, or 5%, primarily reflecting a decrease in MSR asset decay and an increase in origination fees and gains on loans sales. Wealth and asset management revenue increased $8 million, or 6%, driven by higher brokerage fees and personal asset management revenue. Card and processing revenue increased $3 million, or 3%, primarily reflecting higher interchange revenue. Leasing business revenue decreased $12 million, or 21%, primarily reflecting lower operating lease revenue and lease remarketing revenue. The decrease in other noninterest income was primarily attributable to lower tax receivable agreement revenue and private equity income.

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

For the Three Months Ended

 

 

% Change

 

 

 

December

 

September

 

December

 

 

 

 

 

 

 

2023

 

2023

 

2022

 

Seq

 

Yr/Yr

 

 

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

$659

 

 

$629

 

 

$655

 

 

5%

 

1%

 

 

Net occupancy expense

83

 

 

84

 

 

82

 

 

(1)%

 

1%

 

 

Technology and communications

117

 

 

115

 

 

111

 

 

2%

 

5%

 

 

Equipment expense

37

 

 

37

 

 

37

 

 

 

 

 

Card and processing expense

21

 

 

21

 

 

21

 

 

 

 

 

Leasing business expense

27

 

 

29

 

 

36

 

 

(7)%

 

(25)%

 

 

Marketing expense

30

 

 

35

 

 

31

 

 

(14)%

 

(3)%

 

 

Other noninterest expense

481

 

 

238

 

 

245

 

 

102%

 

96%

 

 

Total noninterest expense

$1,455

 

 

$1,188

 

 

$1,218

 

 

22%

 

19%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported noninterest expense increased $267 million, or 22%, from the prior quarter, and increased $237 million, or 19%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below.

 

Noninterest Expense excluding certain item(s)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

For the Three Months Ended

 

 

% Change

 

 

 

 

December

 

September

 

 

December

 

 

 

 

 

 

 

 

 

2023

 

2023

 

 

2022

 

 

Seq

 

Yr/Yr

 

 

 

Noninterest Expense excluding certain item(s)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (U.S. GAAP)

$1,455

 

 

$1,188

 

 

$1,218

 

 

 

 

 

 

 

 

FDIC special assessment

(224)

 

 

 

 

 

 

 

 

 

 

 

 

Fifth Third Foundation contribution

(15)

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring severance expense

(5)

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense excluding certain item(s)(a)

$1,211

 

 

$1,188

 

 

$1,218

 

 

2%

 

(1)%

 

 

Compared to the prior quarter, noninterest expense excluding certain items increased $23 million, or 2%, primarily driven by the impact of non-qualified deferred compensation mark-to-market, which was a $17 million expense in the fourth quarter compared to a $5 million benefit in the prior quarter, both of which were largely offset in net securities gains/losses through noninterest income.

Compared to the year-ago quarter, noninterest expense excluding certain items decreased $7 million, or 1%, primarily driven by lower leasing business expense and other noninterest expense, partially offset by higher technology and communications expense primarily related to continued modernization investments. The year-ago quarter included $6 million of noninterest expense related to the impact of non-qualified deferred compensation mark-to-market, which was largely offset in net securities gains/losses through noninterest income.

 

Average Interest-Earning Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

For the Three Months Ended

 

 

% Change

 

 

 

December

 

September

 

December

 

 

 

 

 

 

 

2023

 

2023

 

2022

 

Seq

 

Yr/Yr

 

 

Average Portfolio Loans and Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans

$54,633

 

 

$57,001

 

 

$57,646

 

 

(4)%

 

(5)%

 

 

Commercial mortgage loans

11,338

 

 

11,216

 

 

10,898

 

 

1%

 

4%

 

 

Commercial construction loans

5,727

 

 

5,539

 

 

5,544

 

 

3%

 

3%

 

 

Commercial leases

2,535

 

 

2,616

 

 

2,736

 

 

(3)%

 

(7)%

 

 

Total commercial loans and leases

$74,233

 

 

$76,372

 

 

$76,824

 

 

(3)%

 

(3)%

 

 

Consumer loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

$17,129

 

 

$17,400

 

 

$17,577

 

 

(2)%

 

(3)%

 

 

Home equity

3,905

 

 

3,897

 

 

4,024

 

 

 

(3)%

 

 

Indirect secured consumer loans

15,129

 

 

15,787

 

 

16,536

 

 

(4)%

 

(9)%

 

 

Credit card

1,829

 

 

1,808

 

 

1,795

 

 

1%

 

2%

 

 

Other consumer loans

6,633

 

 

6,366

 

 

4,615

 

 

4%

 

44%

 

 

Total consumer loans

$44,625

 

 

$45,258

 

 

$44,547

 

 

(1)%

 

 

 

Total average portfolio loans and leases

$118,858

 

 

$121,630

 

 

$121,371

 

 

(2)%

 

(2)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans and Leases Held for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases held for sale

$72

 

 

$17

 

 

$84

 

 

324%

 

(14)%

 

 

Consumer loans held for sale

379

 

 

619

 

 

1,411

 

 

(39)%

 

(73)%

 

 

Total average loans and leases held for sale

$451

 

 

$636

 

 

$1,495

 

 

(29)%

 

(70)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total average loans and leases

$119,309

 

 

$122,266

 

 

$122,866

 

 

(2)%

 

(3)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities (taxable and tax-exempt)

$57,351

 

 

$56,994

 

 

$58,489

 

 

1%

 

(2)%

 

 

Other short-term investments

21,506

 

 

12,956

 

 

6,285

 

 

66%

 

242%

 

 

Total average interest-earning assets

$198,166

 

 

$192,216

 

 

$187,640

 

 

3%

 

6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compared to the prior quarter, total average portfolio loans and leases decreased 2%, reflecting the aforementioned reduction in risk-weighted assets initiative which impacted both commercial and consumer portfolios. Average commercial portfolio loans and leases decreased 3%, reflecting a decrease in commercial and industrial (C&I) loan balances. Average consumer portfolio loans decreased 1%, primarily reflecting decreases in indirect secured consumer loan balances and residential mortgage loan balances, partially offset by an increase in other consumer loan balances driven by Dividend Finance.

Compared to the year-ago quarter, total average portfolio loans and leases decreased 2%, reflecting a decrease in the commercial portfolio. Average commercial portfolio loans and leases decreased 3%, primarily reflecting a decrease in C&I loan balances, partially offset by an increase in commercial mortgage loan balances. Average consumer portfolio loans were flat, primarily reflecting an increase in other consumer loan balances driven by Dividend Finance, offset by a decrease in indirect secured consumer loan balances and residential mortgage loan balances.

Average loans and leases held for sale were $0.5 billion in the current quarter compared to $0.6 billion in the prior quarter and $1.5 billion in the year-ago quarter.

Average securities (taxable and tax-exempt; amortized cost) of $57 billion in the current quarter increased $0.4 billion, or 1%, compared to the prior quarter and decreased $1 billion, or 2%, compared to the year-ago quarter. Average other short-term investments (including interest-bearing cash) of $22 billion in the current quarter increased $9 billion, or 66%, compared to the prior quarter and increased $15 billion, or 242%, compared to the year-ago quarter.

Total period-end commercial portfolio loans and leases of $73 billion decreased 3% compared to the prior quarter, primarily reflecting a decrease in C&I loan balances. Compared to the year-ago quarter, total period-end commercial portfolio loans and leases decreased 5%, primarily reflecting a decrease in C&I loan balances. Period-end commercial revolving line utilization was 35%, compared to 36% in the prior quarter and 37% in the year-ago quarter.

Total period-end consumer portfolio loans of $44 billion decreased 1% compared to the prior quarter, primarily reflecting decreases in indirect secured consumer loan balances and residential mortgage loan balances, partially offset by an increase in other consumer loan balances driven by Dividend Finance. Compared to the year-ago quarter, total period-end consumer portfolio loans decreased 1%, primarily driven by decreases in indirect secured consumer loan balances and residential mortgage loan balances, partially offset by an increase in other consumer loan balances driven by Dividend Finance.

Total period-end securities (taxable and tax-exempt; amortized cost) of $57 billion in the current quarter were stable compared to the prior quarter and decreased $1 billion, or 2%, compared to the year-ago quarter. Period-end other short-term investments of approximately $22 billion increased $3 billion, or 17%, compared to the prior quarter, and increased $14 billion, or 164%, compared to the year-ago quarter.

On January 3, 2024, Fifth Third transferred $12.6 billion (amortized cost) of securities, with an unrealized loss of $994 million, from available-for-sale to held-to-maturity. This transfer is in response to Fifth Third’s decision to hold these securities to maturity in order to reduce potential capital volatility associated with investment security market price fluctuations.

Average Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

For the Three Months Ended

 

 

% Change

 

 

 

December

 

September

 

December

 

 

 

 

 

 

 

2023

 

2023

 

2022

 

Seq

 

Yr/Yr

 

 

Average Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand

$43,396

 

 

$44,228

 

 

$54,550

 

 

(2)%

 

(20)%

 

 

Interest checking

57,114

 

 

53,109

 

 

47,801

 

 

8%

 

19%

 

 

Savings

18,252

 

 

20,511

 

 

23,474

 

 

(11)%

 

(22)%

 

 

Money market

34,292

 

 

32,072

 

 

28,713

 

 

7%

 

19%

 

 

Foreign office(g)

178

 

 

168

 

 

209

 

 

6%

 

(15)%

 

 

Total transaction deposits

$153,232

 

 

$150,088

 

 

$154,747

 

 

2%

 

(1)%

 

 

CDs $250,000 or less

10,556

 

 

9,630

 

 

2,748

 

 

10%

 

284%

 

 

Total core deposits

$163,788

 

 

$159,718

 

 

$157,495

 

 

3%

 

4%

 

 

CDs over $250,000

5,659

 

 

5,926

 

 

3,566

 

 

(5)%

 

59%

 

 

Total average deposits

$169,447

 

 

$165,644

 

 

$161,061

 

 

2%

 

5%

 

 

CDs over $250,000 includes $4.8BN, $5.2BN, and $3.4BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 12/31/23, 9/30/23, and 12/31/22, respectively.

 

 

 

Compared to the prior quarter, total average deposits increased 2%, primarily due to seasonality. Average demand deposits represented 26% of total core deposits in the current quarter, compared to 28% in the prior quarter. Compared to the prior quarter, average consumer segment deposits increased 1%, average commercial segment deposits increased 5%, and average wealth & asset management segment deposits increased 1%. Period-end total deposits increased 1% compared to the prior quarter.

Compared to the year-ago quarter, total average deposits increased 5%, primarily reflecting an increase in interest checking and time deposit balances, partially offset by a decrease in demand account balances. Period-end total deposits increased 3% compared to the year-ago quarter.

The period-end portfolio loan-to-core deposit ratio was 72% in the current quarter, compared to 74% in the prior quarter and 76% in the year-ago quarter. Estimated uninsured deposits were approximately $71 billion, or 42% of total deposits, as of quarter end.

Average Wholesale Funding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

For the Three Months Ended

 

 

% Change

 

 

 

December

 

September

 

December

 

 

 

 

 

 

 

2023

 

2023

 

2022

 

Seq

 

Yr/Yr

 

 

Average Wholesale Funding

 

 

 

 

 

 

 

 

 

 

 

 

 

CDs over $250,000

$5,659

 

 

$5,926

 

 

$3,566

 

 

(5)%

 

59%

 

 

Federal funds purchased

191

 

 

181

 

 

264

 

 

6%

 

(28)%

 

 

Securities sold under repurchase agreements

350

 

 

352

 

 

476

 

 

(1)%

 

(26)%

 

 

FHLB advances

3,293

 

 

3,726

 

 

5,489

 

 

(12)%

 

(40)%

 

 

Derivative collateral and other secured borrowings

34

 

 

48

 

 

225

 

 

(29)%

 

(85)%

 

 

Long-term debt

16,588

 

 

14,056

 

 

13,425

 

 

18%

 

24%

 

 

Total average wholesale funding

$26,115

 

 

$24,289

 

 

$23,445

 

 

8%

 

11%

 

 

 

 

CDs over $250,000 includes $4.8BN, $5.2BN, and $3.4BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 12/31/23, 9/30/23, and 12/31/22, respectively.

 

Contacts

Investor contact: Matt Curoe (513) 534-2345

Media contact: Jennifer Hendricks Sullivan (614) 744-7693

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