Period-end total deposits increased 1% compared to the prior quarter and 2% year-over-year
Credit quality remains strong with net charge-off ratio of 0.29% and early stage delinquencies of 0.28%
Reported results included a negative $0.05 impact from certain items on page 2 of the earnings release
CINCINNATI–(BUSINESS WIRE)–Fifth Third Bancorp (NASDAQ: FITB):
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Key Financial Data |
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Key Highlights |
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$ in millions for all balance sheet and income statement items |
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2Q23 |
1Q23 |
2Q22 |
Stability:
Profitability: Compared to 2Q22
Growth:
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Income Statement Data |
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Net income available to common shareholders |
$562 |
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$535 |
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$526 |
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Net interest income (U.S. GAAP) |
1,457 |
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1,517 |
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1,339 |
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Net interest income (FTE)(a) |
1,463 |
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1,522 |
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1,342 |
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Noninterest income |
726 |
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696 |
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676 |
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Noninterest expense |
1,231 |
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1,331 |
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1,112 |
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Per Share Data |
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Earnings per share, basic |
$0.82 |
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$0.78 |
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$0.76 |
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Earnings per share, diluted |
0.82 |
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0.78 |
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0.76 |
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Book value per share |
23.05 |
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23.87 |
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24.56 |
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Tangible book value per share(a) |
15.61 |
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16.41 |
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17.10 |
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Balance Sheet & Credit Quality |
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Average portfolio loans and leases |
$123,327 |
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$122,812 |
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$117,693 |
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Average deposits |
160,857 |
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160,645 |
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162,890 |
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Accumulated other comprehensive loss |
(5,166) |
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(4,245) |
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(2,644) |
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Net charge-off ratio(b) |
0.29 |
% |
0.26 |
% |
0.21 |
% |
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Nonperforming asset ratio(c) |
0.54 |
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0.51 |
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0.47 |
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Financial Ratios |
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Return on average assets |
1.17 |
% |
1.10 |
% |
1.09 |
% |
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Return on average common equity |
13.9 |
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13.7 |
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12.3 |
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Return on average tangible common equity(a) |
20.5 |
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20.5 |
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17.5 |
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CET1 capital(d)(e) |
9.53 |
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9.28 |
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8.95 |
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Net interest margin(a) |
3.10 |
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3.29 |
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2.92 |
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Efficiency(a) |
56.2 |
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60.0 |
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55.1 |
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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. |
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From Tim Spence, Fifth Third President and CEO: |
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Fifth Third’s financial results once again reflected our balance sheet strength, disciplined credit risk management, and diversified revenue streams. We have continued to navigate the uncertain economic environment well, including delivering solid deposit outcomes once again this quarter. Additionally, our key return metrics improved compared to the year-ago quarter while we continued to raise our regulatory capital ratios through strong earnings results.
We continue to prudently invest in this environment, adding net new households in consumer and new quality middle market relationships in commercial. Furthermore, we announced the acquisition of Rize Money to accelerate our embedded payments capabilities under the Newline brand. We also de-emphasized certain areas of the bank in order to optimize capital and returns going forward, including lowering production targets in indirect secured consumer lending.
While the economic and regulatory environments remain uncertain, Fifth Third has spent nearly a decade focused on positioning the bank to outperform peers through the cycle. Going forward, we will continue to follow our guiding principles of stability, profitability, and growth – in that order.
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Income Statement Highlights |
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($ in millions, except per share data) |
For the Three Months Ended |
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% Change |
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June |
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March |
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June |
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2023 |
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2023 |
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2022 |
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Seq |
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Yr/Yr |
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Condensed Statements of Income |
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Net interest income (NII)(a) |
$1,463 |
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$1,522 |
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$1,342 |
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(4)% |
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9% |
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Provision for credit losses |
177 |
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164 |
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179 |
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8% |
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(1)% |
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Noninterest income |
726 |
|
696 |
|
676 |
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4% |
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7% |
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Noninterest expense |
1,231 |
|
1,331 |
|
1,112 |
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(8)% |
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11% |
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Income before income taxes(a) |
$781 |
|
$723 |
|
$727 |
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8% |
|
7% |
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Taxable equivalent adjustment |
$6 |
|
$5 |
|
$3 |
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20% |
|
100% |
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Applicable income tax expense |
174 |
|
160 |
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162 |
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9% |
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7% |
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Net income |
$601 |
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$558 |
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$562 |
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8% |
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7% |
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Dividends on preferred stock |
39 |
|
23 |
|
36 |
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70% |
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8% |
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Net income available to common shareholders |
$562 |
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$535 |
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$526 |
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5% |
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7% |
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Earnings per share, diluted |
$0.82 |
|
$0.78 |
|
$0.76 |
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5% |
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8% |
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Fifth Third Bancorp (NASDAQ®: FITB) today reported second quarter 2023 net income of $601 million compared to net income of $558 million in the prior quarter and $562 million in the year-ago quarter. Net income available to common shareholders in the current quarter was $562 million, or $0.82 per diluted share, compared to $535 million, or $0.78 per diluted share, in the prior quarter and $526 million, or $0.76 per diluted share, in the year-ago quarter.
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Diluted earnings per share impact of certain item(s) – 2Q23 |
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(after-tax impact(f); $ in millions, except per share data) |
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Valuation of Visa total return swap (noninterest income) |
$(23) |
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Restructuring severance expense |
(9) |
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After-tax impact(f) of certain items |
$(32) |
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Diluted earnings per share impact of certain item(s)1 |
$(0.05) |
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Totals may not foot due to rounding; 1Diluted earnings per share impact reflects 686.386 million average diluted shares outstanding |
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Net Interest Income |
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(FTE; $ in millions)(a) |
For the Three Months Ended |
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% Change |
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June |
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March |
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June |
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2023 |
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2023 |
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2022 |
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Seq |
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Yr/Yr |
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Interest Income |
|
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Interest income |
$2,376 |
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|
$2,218 |
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|
$1,467 |
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7% |
|
62% |
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|
Interest expense |
913 |
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|
696 |
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|
125 |
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31% |
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630% |
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|
Net interest income (NII) |
$1,463 |
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|
$1,522 |
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$1,342 |
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(4)% |
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9% |
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Average Yield/Rate Analysis |
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bps Change |
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Yield on interest-earning assets |
5.04% |
|
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4.80% |
|
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3.19% |
|
|
24 |
|
185 |
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|
Rate paid on interest-bearing liabilities |
2.72% |
|
|
2.18% |
|
|
0.43% |
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|
54 |
|
229 |
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Ratios |
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Net interest rate spread |
2.32% |
|
|
2.62% |
|
|
2.76% |
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(30) |
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(44) |
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Net interest margin (NIM) |
3.10% |
|
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3.29% |
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2.92% |
|
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(19) |
|
18 |
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Balance sheet actions continued to reflect a defensive positioning given the uncertain macroeconomic outlook and tightening liquidity conditions. As a result, NII decreased $59 million, or 4%, compared to the prior quarter. Actions undertaken during the quarter include a continuation of deposit gathering activities, which sustained the recent deposit mix shift trends from demand to interest-bearing accounts with higher costs. These increased deposit costs were partially offset by improved loan yields from higher market rates and the impact of higher day count. Compared to the prior quarter, NIM decreased 19 bps, primarily reflecting the aforementioned deposit dynamics and the impact of higher day count, partially offset by higher loan yields. NIM results continue to be impacted by the decision to carry elevated liquidity given the environment, with the combination of cash and due from banks and other short term investments reaching $14 billion at quarter-end.
Compared to the year-ago quarter, NII increased $121 million, or 9%, reflecting the net benefit of higher market rates, as well as growth in C&I loan balances and investment portfolio balances, partially offset by the deposit mix shift from demand to interest-bearing accounts and continued deposit repricing dynamics. Compared to the year-ago quarter, NIM increased 18 bps, reflecting the net benefit of higher market rates, growth in C&I loan balances and average investment portfolio balances, and a decline in excess cash, partially offset by the aforementioned deposit dynamics and an increase in wholesale funding.
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Noninterest Income |
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($ in millions) |
For the Three Months Ended |
|
% Change |
|
||||||
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|
June |
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March |
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June |
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2023 |
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2023 |
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2022 |
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Seq |
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Yr/Yr |
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Noninterest Income |
|
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Service charges on deposits |
$144 |
|
$137 |
|
$154 |
|
5% |
|
(6)% |
|
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|
Commercial banking revenue |
146 |
|
161 |
|
137 |
|
(9)% |
|
7% |
|
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|
Mortgage banking net revenue |
59 |
|
69 |
|
31 |
|
(14)% |
|
90% |
|
|
|
Wealth and asset management revenue |
143 |
|
146 |
|
140 |
|
(2)% |
|
2% |
|
|
|
Card and processing revenue |
106 |
|
100 |
|
105 |
|
6% |
|
1% |
|
|
|
Leasing business revenue |
47 |
|
57 |
|
56 |
|
(18)% |
|
(16)% |
|
|
|
Other noninterest income |
74 |
|
22 |
|
85 |
|
236% |
|
(13)% |
|
|
|
Securities gains (losses), net |
7 |
|
4 |
|
(32) |
|
75% |
|
NM |
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|
|
Securities losses, net – non-qualifying hedges |
|
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|
|
|
|
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|
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|
|
on mortgage servicing rights |
— |
|
— |
|
— |
|
NM |
|
NM |
|
|
|
Total noninterest income |
$726 |
|
$696 |
|
$676 |
|
4% |
|
7% |
|
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|
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|
Reported noninterest income increased $30 million, or 4%, from the prior quarter, and increased $50 million, or 7%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans.
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Noninterest Income excluding certain items |
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($ in millions) |
For the Three Months Ended |
|
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||||||
|
|
|
June |
|
March |
|
|
June |
|
|
% Change |
|
|||
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|
2023 |
|
2023 |
|
|
2022 |
|
|
Seq |
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Yr/Yr |
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|
Noninterest Income excluding certain items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (U.S. GAAP) |
$726 |
|
|
$696 |
|
|
$676 |
|
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|
Valuation of Visa total return swap |
30 |
|
|
31 |
|
|
18 |
|
|
|
|
|
|
|
|
Net disposition charges/(gain) |
— |
|
|
— |
|
|
6 |
|
|
|
|
|
|
|
|
Securities (gains)/losses, net |
(7) |
|
|
(4) |
|
|
32 |
|
|
|
|
|
|
|
|
Noninterest income excluding certain items(a) |
$749 |
|
|
$723 |
|
|
$732 |
|
|
4% |
|
2% |
|
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|
|
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|
Noninterest income excluding certain items increased $26 million, or 4%, from the prior quarter, and increased $17 million, or 2%, from the year-ago quarter.
Compared to the prior quarter, service charges on deposits increased $7 million, or 5%, reflecting an increase in both consumer and commercial deposit fees. Commercial banking revenue decreased $15 million, or 9%, primarily reflecting lower loan syndication and M&A advisory revenue, partially offset by an increase in client financial risk management revenue. Mortgage banking net revenue decreased $10 million, or 14%, primarily reflecting an increase in MSR asset decay and a decrease in MSR net valuation adjustments, partially offset by an increase in origination fees and gains on loan sales. Wealth and asset management revenue decreased $3 million, or 2%, primarily driven by seasonally strong tax-related private client service revenue in the prior quarter, partially offset by higher personal asset management revenue. Card and processing revenue increased $6 million, or 6%, driven by higher interchange revenue. Leasing business revenue decreased $10 million, or 18%, reflecting lower lease remarketing revenue. The increase in other noninterest income was attributable to equity fund and direct investment income.
Compared to the year-ago quarter, service charges on deposits decreased $10 million, or 6%, primarily reflecting the market related impact of higher earnings credits and the elimination of consumer non-sufficient funds fees in July 2022. Commercial banking revenue increased $9 million, or 7%, primarily driven by increased loan syndication revenue and client financial risk management revenue, partially offset by a decrease in M&A advisory revenue. Mortgage banking net revenue increased $28 million, or 90%, reflecting an increase from MSR net valuation adjustments and a decrease in MSR asset decay, partially offset by lower origination fees and gains on loan sales. Wealth and asset management revenue increased $3 million, or 2%, primarily reflecting higher personal asset management revenue. Card and processing revenue increased $1 million, or 1%, driven by higher interchange revenue partially offset by higher rewards. Leasing business revenue decreased $9 million, or 16%, reflecting lower lease remarketing revenue.
|
|
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
June |
|
March |
|
June |
|
|
|
|
|
|||
|
|
|
2023 |
|
2023 |
|
2022 |
|
Seq |
|
Yr/Yr |
|
|||
|
|
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
$650 |
|
|
$757 |
|
|
$584 |
|
|
(14)% |
|
11% |
|
|
|
Net occupancy expense |
83 |
|
|
81 |
|
|
75 |
|
|
2% |
|
11% |
|
|
|
Technology and communications |
114 |
|
|
118 |
|
|
98 |
|
|
(3)% |
|
16% |
|
|
|
Equipment expense |
36 |
|
|
37 |
|
|
36 |
|
|
(3)% |
|
— |
|
|
|
Card and processing expense |
20 |
|
|
22 |
|
|
20 |
|
|
(9)% |
|
— |
|
|
|
Leasing business expense |
31 |
|
|
34 |
|
|
31 |
|
|
(9)% |
|
— |
|
|
|
Marketing expense |
31 |
|
|
29 |
|
|
28 |
|
|
7% |
|
11% |
|
|
|
Other noninterest expense |
266 |
|
|
253 |
|
|
240 |
|
|
5% |
|
11% |
|
|
|
Total noninterest expense |
$1,231 |
|
|
$1,331 |
|
|
$1,112 |
|
|
(8)% |
|
11% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported noninterest expense decreased $100 million, or 8%, from the prior quarter, and increased $119 million, or 11%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including restructuring severance expense from proactive actions taken to reduce ongoing expenses given the operating environment.
|
|
Noninterest Expense excluding certain item(s) |
|
|
|
|
|
||||||||
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
June |
|
March |
|
|
June |
|
|
|
|
|
|
|
|
|
|
2023 |
|
2023 |
|
|
2022 |
|
|
Seq |
|
Yr/Yr |
|
|
|
|
Noninterest Expense excluding certain item(s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (U.S. GAAP) |
$1,231 |
|
|
$1,331 |
|
|
$1,112 |
|
|
|
|
|
|
|
|
Restructuring severance expense |
(12) |
|
|
(12) |
|
|
— |
|
|
|
|
|
|
|
|
Noninterest expense excluding certain item(s)(a) |
$1,219 |
|
|
$1,319 |
|
|
$1,112 |
|
|
(8)% |
|
10% |
|
Compared to the prior quarter, noninterest expense excluding certain items decreased $100 million, or 8%, primarily driven by decreases in compensation and benefits expense, technology and communications expense, and leasing business expense. Noninterest expense in the current quarter included a $10 million expense related to the impact of non-qualified deferred compensation mark-to-market compared to a $12 million expense in the prior quarter (both of which were largely offset in net securities gains through noninterest income).
Compared to the year-ago quarter, noninterest expense excluding certain items increased $107 million, or 10%, primarily reflecting an increase in compensation and benefits expense impacted by the acquisition of Dividend Finance and the minimum wage increase in July 2022, higher technology and communications expense related to continued modernization investments, as well as an increase in other noninterest expense (primarily reflecting the ongoing impact of the FDIC assessment to increase the deposit insurance fund). The year-ago quarter included a $27 million benefit to noninterest expense related to non-qualified deferred compensation mark-to-market (which was largely offset in net securities losses through noninterest income). Excluding the impacts of non-qualified deferred compensation mark-to-market and the FDIC assessment, noninterest expense excluding certain items increased $61 million, or 5%, compared to the year-ago quarter.
|
|
Average Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
June |
|
March |
|
June |
|
|
|
|
|
|||
|
|
|
2023 |
|
2023 |
|
2022 |
|
Seq |
|
Yr/Yr |
|
|||
|
|
Average Portfolio Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans |
$58,137 |
|
|
$58,149 |
|
|
$55,460 |
|
|
— |
|
5% |
|
|
|
Commercial mortgage loans |
11,373 |
|
|
11,121 |
|
|
10,710 |
|
|
2% |
|
6% |
|
|
|
Commercial construction loans |
5,535 |
|
|
5,507 |
|
|
5,356 |
|
|
1% |
|
3% |
|
|
|
Commercial leases |
2,700 |
|
|
2,662 |
|
|
2,839 |
|
|
1% |
|
(5)% |
|
|
|
Total commercial loans and leases |
$77,745 |
|
|
$77,439 |
|
|
$74,365 |
|
|
— |
|
5% |
|
|
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans |
$17,517 |
|
|
$17,581 |
|
|
$17,363 |
|
|
— |
|
1% |
|
|
|
Home equity |
3,937 |
|
|
4,005 |
|
|
3,895 |
|
|
(2)% |
|
1% |
|
|
|
Indirect secured consumer loans |
16,281 |
|
|
16,598 |
|
|
17,241 |
|
|
(2)% |
|
(6)% |
|
|
|
Credit card |
1,783 |
|
|
1,780 |
|
|
1,704 |
|
|
— |
|
5% |
|
|
|
Other consumer loans |
6,064 |
|
|
5,409 |
|
|
3,125 |
|
|
12% |
|
94% |
|
|
|
Total consumer loans |
$45,582 |
|
|
$45,373 |
|
|
$43,328 |
|
|
— |
|
5% |
|
|
|
Total average portfolio loans and leases |
$123,327 |
|
|
$122,812 |
|
|
$117,693 |
|
|
— |
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average PPP loans |
$37 |
|
|
$66 |
|
|
$549 |
|
|
(44)% |
|
(93)% |
|
|
|
Average portfolio commercial and industrial loans – excl. PPP loans |
$58,100 |
|
|
$58,083 |
|
|
$54,911 |
|
|
— |
|
6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Loans and Leases Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans and leases held for sale |
$19 |
|
|
$56 |
|
|
$7 |
|
|
(66)% |
|
171% |
|
|
|
Consumer loans held for sale |
641 |
|
|
747 |
|
|
2,536 |
|
|
(14)% |
|
(75)% |
|
|
|
Total average loans and leases held for sale |
$660 |
|
|
$803 |
|
|
$2,543 |
|
|
(18)% |
|
(74)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average loans and leases |
$123,987 |
|
|
$123,615 |
|
|
$120,236 |
|
|
— |
|
3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities (taxable and tax-exempt) |
$57,267 |
|
|
$58,514 |
|
|
$54,538 |
|
|
(2)% |
|
5% |
|
|
|
Other short-term investments |
7,806 |
|
|
5,278 |
|
|
9,632 |
|
|
48% |
|
(19)% |
|
|
|
Total average interest-earning assets |
$189,060 |
|
|
$187,407 |
|
|
$184,406 |
|
|
1% |
|
3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compared to the prior quarter, total average portfolio loans and leases were flat, reflecting stable commercial and consumer portfolios. Average commercial portfolio loans and leases were flat, reflecting stable commercial and industrial (C&I) loan balances. Average consumer portfolio loans were flat, as an increase in other consumer loans (primarily Dividend Finance) was offset by a decrease in indirect secured consumer loan and home equity balances.
Compared to the year-ago quarter, total average portfolio loans and leases increased 5%, reflecting an increase in both commercial and consumer portfolios. Average commercial portfolio loans and leases increased 5%, primarily reflecting an increase in C&I and commercial mortgage loan balances, partially offset by a decrease in commercial lease balances. Average consumer portfolio loans increased 5%, as increases in both other consumer loans (primarily Dividend Finance) and residential mortgage loan balances were partially offset by a decrease in indirect secured consumer loan balances.
Average loans and leases held for sale were $0.7 billion in the current quarter compared to $0.8 billion in the prior quarter and $2.5 billion in the year-ago quarter.
Average securities (taxable and tax-exempt; amortized cost) of $57 billion in the current quarter decreased $1 billion, or 2%, compared to the prior quarter and increased $3 billion, or 5%, compared to the year-ago quarter. Average other short-term investments (including interest-bearing cash) of $8 billion in the current quarter increased $3 billion, or 48%, compared to the prior quarter and decreased $2 billion, or 19%, compared to the year-ago quarter.
Total period-end commercial portfolio loans and leases of $76 billion decreased 1% compared to the prior quarter, reflecting decreases in C&I loan balances primarily attributable to lower revolving line of credit utilization. Compared to the year-ago quarter, total period-end commercial portfolio loans increased 2%, primarily reflecting increases in C&I loan and commercial mortgage loan balances, partially offset by a decrease in commercial lease balances. Period-end commercial revolving line utilization was 35%, compared to 37% in the prior quarter and 37% in the year-ago quarter.
Period-end consumer portfolio loans of $46 billion were flat compared to the prior quarter, as an increase in other consumer loan balances (primarily Dividend Finance) was offset by a decrease in indirect secured consumer loan balances. Compared to the year-ago quarter, total period-end consumer portfolio loans increased 4%, reflecting increases in other consumer loan balances (primarily Dividend Finance), partially offset by a decrease in indirect secured consumer loans.
Total period-end securities (taxable and tax-exempt; amortized cost) of $57 billion in the current quarter decreased $1 billion, or 2%, compared to the prior quarter and were stable compared to the year-ago quarter. Period-end other short-term investments of approximately $11 billion increased $1 billion, or 12%, compared to the prior quarter, and increased $4 billion, or 47%, compared to the year-ago quarter.
|
Average Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
June |
|
March |
|
June |
|
|
|
|
|
|||
|
|
|
2023 |
|
2023 |
|
2022 |
|
Seq |
|
Yr/Yr |
|
|||
|
|
Average Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
$46,520 |
|
|
$50,737 |
|
|
$62,555 |
|
|
(8)% |
|
(26)% |
|
|
|
Interest checking |
50,472 |
|
|
48,717 |
|
|
44,349 |
|
|
4% |
|
14% |
|
|
|
Savings |
21,675 |
|
|
23,107 |
|
|
23,708 |
|
|
(6)% |
|
(9)% |
|
|
|
Money market |
28,913 |
|
|
28,420 |
|
|
29,284 |
|
|
2% |
|
(1)% |
|
|
|
Foreign office(g) |
143 |
|
|
143 |
|
|
139 |
|
|
— |
|
3% |
|
|
|
Total transaction deposits |
$147,723 |
|
|
$151,124 |
|
|
$160,035 |
|
|
(2)% |
|
(8)% |
|
|
|
CDs $250,000 or less |
7,759 |
|
|
5,173 |
|
|
2,193 |
|
|
50% |
|
254% |
|
|
|
Total core deposits |
$155,482 |
|
|
$156,297 |
|
|
$162,228 |
|
|
(1)% |
|
(4)% |
|
|
|
CDs over $250,000 |
5,375 |
|
|
4,348 |
|
|
662 |
|
|
24% |
|
712% |
|
|
|
Total average deposits |
$160,857 |
|
|
$160,645 |
|
|
$162,890 |
|
|
— |
|
(1)% |
|
|
|
CDs over $250,000 includes $4.9 billion of retail brokered certificates of deposit which are covered by FDIC insurance as of the second quarter of 2023. |
|
||||||||||||
|
|
|
|||||||||||||
Compared to the prior quarter, total average deposits were flat, as increases in certificates of deposit and interest checking balances were offset by a decline in demand deposit account balances. Average demand deposits represented 30% of total core deposits in the current quarter, compared to 32% in the prior quarter. Compared to the prior quarter, average consumer segment deposits increased 1%, average commercial segment deposits decreased 1%, and average wealth & asset management segment deposits decreased 12% reflecting the impact of tax payments as well as clients’ alternative investment options. Period-end total deposits increased 1% compared to the prior quarter.
Compared to the year-ago quarter, total average deposits decreased 1%, primarily reflecting a decline in demand deposits, partially offset by increases in certificates of deposit and interest checking balances. Period-end total deposits increased 2% compared to the year-ago quarter.
The period end portfolio loan-to-core deposit ratio was 77% in the current quarter, compared to 78% in the prior quarter and 75% in the year-ago quarter. Estimated uninsured deposits were approximately $66 billion, or 40% of total deposits, as of quarter end.
|
Average Wholesale Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
June |
|
March |
|
June |
|
|
|
|
|
|||
|
|
|
2023 |
|
2023 |
|
2022 |
|
Seq |
|
Yr/Yr |
|
|||
|
|
Average Wholesale Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDs over $250,000 |
$5,375 |
|
|
$4,348 |
|
|
$662 |
|
|
24% |
|
712% |
|
|
|
Federal funds purchased |
376 |
|
|
487 |
|
|
392 |
|
|
(23)% |
|
(4)% |
|
|
|
Securities sold under repurchase agreements |
361 |
|
|
327 |
|
|
488 |
|
|
10% |
|
(26)% |
|
|
|
FHLB advances |
6,589 |
|
|
4,803 |
|
|
2,743 |
|
|
37% |
|
140% |
|
|
|
Derivative collateral and other secured borrowings |
79 |
|
|
245 |
|
|
340 |
|
|
(68)% |
|
(77)% |
|
|
|
Long-term debt |
12,848 |
|
|
13,510 |
|
|
11,164 |
|
|
(5)% |
|
15% |
|
|
|
Total average wholesale funding |
$25,628 |
|
|
$23,720 |
|
|
$15,789 |
|
|
8% |
|
62% |
|
|
|
|
|||||||||||||
|
|
CDs over $250,000 includes $4.9 billion of retail brokered certificates of deposit which are covered by FDIC insurance as of the second quarter of 2023. |
|
||||||||||||
Contacts
Investor contact: Chris Doll (513) 534-2345
Media contact: Ed Loyd (513) 534-6397
