About Fifth Third Bancorp

Fifth Third Bancorp (Fifth Third) operates as a diversified financial services company headquartered in Cincinnati, Ohio and is the indirect holding company of Fifth Third Bank, National Association (the ‘bank’). The company operates various full-service Banking Centers and Fifth Third branded ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. The company operates three main businesses: Commercial Banking, Consumer and Small Business Banking and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest. The company’s subsidiaries provide a wide range of financial products and services to the commercial, financial, retail, governmental, educational, energy and healthcare sectors. This includes a variety of checking, savings and money market accounts, wealth management solutions, payments and commerce solutions, insurance services and credit products, such as commercial loans and leases, mortgage loans, credit cards, installment loans and auto loans. These products and services are delivered through a variety of channels including the company’s banking centers, other offices, telephone sales, the internet and mobile applications. The bank has deposit insurance provided by the Federal Deposit Insurance Corporation (the ‘FDIC’) through the Deposit Insurance Fund (the ‘DIF’). The company’s strategy for growth includes strengthening its presence in core markets and broadening its product offerings while taking into account the integration and other risks of growth. The company evaluates strategic acquisition and investment opportunities and conducts due diligence activities in connection with possible transactions. Business Segments The company reports on three business segments: Commercial Banking, Consumer & Small Business Banking and Wealth and Asset Management. Commercial Banking segment offers credit intermediation, cash management and financial services to large and middle-market businesses and government and professional customers. In addition to the traditional lending and depository offerings, Commercial Banking products and services include global cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing and syndicated finance. Consumer and Small Business Banking segment 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. Consumer and Small Business Banking includes the company’s residential mortgage, home equity loans and lines of credit, credit cards, automobile and other indirect lending and other consumer lending activities. Residential mortgage activities include the origination, retention and servicing of residential mortgage loans, sales and securitizations of those loans and all associated hedging activities. Indirect lending activities include extending loans to consumers through automobile dealers, motorcycle dealers, powersport dealers, recreational vehicle dealers and marine dealers. Other consumer lending activities include home improvement and solar energy installation loans originated through a network of contractors and installers. Wealth and Asset Management segment 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. These offerings include retail brokerage services for individual clients, advisory services for institutional clients, including middle market businesses, non-profits, states and municipalities, and wealth management strategies and products for high net worth and ultra-high net worth clients. Loans and Leases The company diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. The company’s commercial loan and lease portfolio consists of lending to various industry types. Commercial Portfolio Segment For purposes of monitoring the credit quality and risk characteristics of its commercial portfolio segment, the company disaggregates the segment into the following classes: commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leases. Residential Mortgage and Consumer Portfolio Segments For purposes of monitoring the credit quality and risk characteristics of its consumer portfolio segment, the company disaggregates the segment into the following classes: home equity, indirect secured consumer loans, credit card and other consumer loans. The company’s residential mortgage portfolio segment is also a separate class. Commercial portfolio segment Commercial loan modifications are individually negotiated and may vary depending on the borrower’s financial situation, but the company most commonly utilizes term extensions for periods of 3 to 12 months. In less common situations and when specifically warranted by the borrower’s situation, the company may also consider offering commercial borrowers interest rate reductions or payment delays, which may be combined with a term extension. Residential mortgage portfolio segment The company has established residential mortgage loan modification programs, which define the type of modifications available, as well as the eligibility criteria for borrowers. The designs of the company’s modification programs for residential mortgage loans are similar to those utilized by the various GSEs. The company also offers payment delay modifications to qualified borrowers which allow either the delay of repayment for delinquent amounts due until maturity or capitalization of delinquent amounts due into the principal balance of the loan. The number of monthly payments delayed varies by borrower but is most commonly within a range of 6 to 12 months. Consumer portfolio segment The company’s modification programs for consumer loans vary based on type of loan. Modifications for indirect secured consumer loans and other consumer loans are less commonly utilized as part of the company’s loss mitigation activities and programs vary by specific product type. Consumer Portfolio The company’s consumer portfolio is materially consisted of five categories of loans: residential mortgage loans, home equity, indirect secured consumer loans, credit card and other consumer loans. Residential Mortgage Portfolio The company may package and sell loans in the portfolio. The company does not originate residential mortgage loans that permit customers to make payments that are less than the accruing interest. The company originates both fixed-rate and ARM loans. Home equity portfolio The company’s home equity portfolio is primarily consisted of home equity lines of credit. Beginning in the first quarter of 2013, the company’s newly originated home equity lines of credit have a 10-year interest-only draw period followed by a 20-year amortization period. Indirect secured consumer portfolio The indirect secured consumer portfolio is consisted of automobile loans and indirect motorcycle, powersport, recreational vehicle and marine loans. Credit card portfolio The credit card portfolio consists of predominantly prime accounts. Other consumer portfolio loans Other consumer portfolio loans are consisted of secured and unsecured loans originated through the company’s branch network, point-of-sale solar energy installation and 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 company discontinued the origination of new loans with this third-party company in September 2022. Investment Securities As of December 31, 2023, the company’s investment securities included U.S. Treasury and federal agencies securities; Obligations of states and political subdivisions securities; mortgage-backed securities, such as agency residential mortgage-backed securities, agency commercial mortgage-backed securities, and non-agency commercial mortgage-backed securities; asset-backed securities and other debt securities; and other securities, such as FHLB, FRB and DTCC restricted stock holdings. Deposits The company continues to focus on core deposit growth in its retail and commercial franchises by improving customer satisfaction, building full relationships and offering competitive rates. As of December 31, 2023, the company’s deposits included transaction deposits, such as demand deposits, interest checking deposits, savings deposits, money market deposits, and foreign office deposits; CDs $250,000 or less; and CDs over $250,000 (retail brokered certificates of deposit which are fully covered by FDIC insurance). Regulation and Supervision The company is a bank holding company (‘BHC’) as defined by the Bank Holding Company Act of 1956, as amended (the ‘BHCA’), and has elected to be treated as a financial holding company (‘FHC’) under the Gramm-Leach-Bliley Act of 1999 (‘GLBA’) and regulations of the Board of Governors of the Federal Reserve System (the ‘FRB’). The company and/or the bank are subject to regulation and supervision primarily by the FRB, the Consumer Financial Protection Bureau (the ‘CFPB’) and the OCC and additionally by certain other functional regulators and self-regulatory organizations. The company is also subject to regulation by the SEC by virtue of its status as a public company and due to the nature of some of its businesses. The bank is also subject to regulation by the FDIC, which insures the bank’s deposits as permitted by law. The company and the bank are required to file various reports with and are subject to examination by various regulators, including the FRB, the OCC and the CFPB. The bank accepts customer deposits that are insured by the DIF and, therefore, must pay insurance premiums. The CRA generally requires insured depository institutions, including the bank, to identify the communities they serve and to make loans and investments and provide services that meet the credit needs of those communities. States are also increasingly proposing or enacting legislation that relates to data privacy and data protection such as the California Consumer Privacy Act. The company continues to assess the requirements of such laws and proposed legislation and their applicability to the company. Like other lenders, the bank and other of the company’s subsidiaries use credit bureau data in their underwriting activities. Use of such data is regulated under the Fair Credit Reporting Act (‘FCRA’), and the FCRA also regulates reporting information to credit bureaus, prescreening individuals for credit offers, sharing of information between affiliates, and using affiliate data for marketing purposes. The company is subject to federal laws that are designed to counter money laundering and terrorist financing, and transactions with certain persons, companies or foreign governments sanctioned by the United States. These include the Bank Secrecy Act, the Money Laundering Control Act, the USA PATRIOT Act and regulations for the International Emergency Economic Powers Act and the Trading with the Enemy Act, as administered by the United States Treasury Department’s Office of Foreign Assets Control. The bank is registered with the CFTC as a swap dealer. As a registered swap dealer, the bank is subject to the requirements of Title VII, including rules related to internal and external business conduct standards, reporting, recordkeeping, mandatory clearing for certain swaps, and trade documentation and confirmation requirements. Fifth Third’s broker-dealer and investment adviser subsidiaries are subject to regulation by the SEC. Financial Industry Regulation Authority (‘FINRA’) is the primary self-regulatory organization for Fifth Third’s registered broker-dealer subsidiaries. The company is subject to supervision and regulation by the CFPB with respect to federal consumer protection laws. The company is also subject to certain state consumer protection laws, and under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), state attorneys general and other state officials are empowered to enforce certain federal consumer protection laws and regulations. History Fifth Third Bancorp was founded in 1858. The company was incorporated in 1974.