# Fifth Third Bancorp (FITB) Sector: Regional bank | Field | Value | |---|---| | Price | $54.19 | | Market cap | $49B | | Intrinsic value source | Analysts | | Data as of | 2026-11-11 | | Next earnings | 2027-01-19 (estimate) | Analysts: Bullish Picks: Research only Discount category: Close to intrinsic value ## In short The market doubts that Fifth Third can earn a good return on the Comerica purchase while deposit costs rise, and the full cost savings with steady credit and the 2027 return targets can lift its value. ## Themes and gap - Themes: Interest rates (interest-rates), Regulation and courts (regulation-legal) - Gap type: Can close (closable) - Why: The Q4 2026 report in January 2027 and the quarterly reports in 2027 show whether the Comerica savings and the 2027 return targets hold. ## About Fifth Third Bancorp (Fifth Third) is a U.S. bank holding company based in Cincinnati, Ohio. Its bank, Fifth Third Bank, National Association, serves businesses, consumers and wealth clients through three segments: Commercial Banking, Consumer and Small Business Banking, and Wealth and Asset Management. On February 1, 2026, Fifth Third bought Comerica Incorporated in an all-stock deal valued at about $12.7 billion, with 1.8663 Fifth Third shares for each Comerica share. At September 30, 2026, it had $301 billion of assets, $239.5 billion of deposits, 1,429 full-service banking centers in fifteen states and 25,069 full-time equivalent employees. Net income available to common shareholders was $828 million in Q3 2026. Tim Spence is Chairman, Chief Executive Officer and President. ## Thesis The market prices Fifth Third as a large regional bank that must still prove the value of the Comerica purchase. The deal raised the share count by about 37%, and merger charges cut reported EPS to $0.90 in Q3 2026, against adjusted EPS of $1.13. Investors also doubt that deposit costs stay under control, because competition for deposits is rising. For the shares to earn more, three things must be true. Fifth Third must keep the full $850 million of yearly cost savings from Comerica and keep its clients in Texas, California and Michigan. Net interest income must rise as fixed-rate assets reprice, while net charge-offs stay near 0.30% to 0.35% of loans. And the bank must reach its 2027 targets of a return on tangible common equity of 19% or more and an efficiency ratio of 53%, which also give room for share repurchases. The Q4 2026 report, expected in January 2027, and the quarterly reports in 2027 are the next tests. ## Checkpoints - Oct 19, 2026: Q3 2026 results: Comerica integration and credit. Status: Passed. Watch: Adjusted EPS above Q2 with net charge-offs of 0.40% or less passes; lower adjusted EPS or higher losses fail. Outcome: Adjusted EPS rose to $1.13 from $1.02, net charge-offs were 0.31%, and the systems conversion of Comerica was complete. - Jan 19, 2027 (estimate): Q4 2026 results and 2027 outlook. Status: Pending. Watch: Net interest income up 2.5% or more from Q3, lower expenses and net charge-offs of 0.35% or less pass; a miss on these fails. - 2027 (estimate): 2027 return and efficiency targets. Status: Pending. Watch: A return on tangible common equity of 19% or more and an efficiency ratio near 53% for 2027 pass; lower returns fail. ## Balance sheet Fifth Third funds itself mostly with deposits. At September 30, 2026, total assets were $301.2 billion and total deposits were $239.5 billion, and the loan-to-core deposit ratio was 76%. Long-term debt was $16.9 billion. Cash and due from banks was $4.1 billion, and other short-term investments were $16.5 billion. Portfolio loans and leases were $180.3 billion, and the securities portfolio was $69 billion at amortized cost. Capital is the real limit. Goodwill rose to $10.0 billion after the Comerica purchase. The CET1 ratio was 10.02%, and the liquidity coverage ratio was 102%. Tangible book value was $22.01 per share, down from $23.22 at June 30, 2026, because accumulated other comprehensive loss rose to $4.9 billion. The quarterly common dividend was $0.42 per share, and Fifth Third did not repurchase common shares under its program in the first nine months of 2026. As of November 3, 2026, the senior debt of Fifth Third Bancorp was rated Baa1 by Moody's, BBB+ by S&P and BBB+ by Fitch. At October 31, 2026, there were 903,645,765 common shares. As of 2026-09-30. Sources: - https://www.sec.gov/Archives/edgar/data/35527/000003552726000229/q32026earningsrelease.htm - https://www.sec.gov/Archives/edgar/data/35527/000003552726000229/fifththirdbancorppresent.htm - https://www.sec.gov/Archives/edgar/data/35527/000003552726000243/fitb-20260930.htm ## Dividends - Dividend yield: 3.0% (last 12 months, at the current price) - Paid per share, last 12 months: $1.62 (4 payments) - Current annual rate: $1.68 ($0.42 x 4 a year) - Payout ratio: 44% of the earnings of the last fiscal year (the year ended 2025-12-31) - Latest ex-dividend date: 2026-09-30, $0.42 per share - Growth from 2020 to 2025: 7.4% a year - Growth from 2015 to 2025: 11.5% a year Dividends per share by year: 2016: $0.53, 2017: $0.60, 2018: $0.74, 2019: $0.94, 2020: $1.08, 2021: $1.14, 2022: $1.26, 2023: $1.36, 2024: $1.44, 2025: $1.54. Source: company filings and market data, read on 2026-11-13. ## Recent events - 2026-10-19: Fifth Third reported Q3 2026 results. Net income available to common shareholders was $828 million, or $0.90 per diluted share, and adjusted EPS was $1.13. Net interest income rose 3% from Q2 to $2.28 billion, net charge-offs were 0.31% of loans, and the CET1 ratio was 10.02%. The quarterly dividend was $0.42 per share, up from $0.40. - 2026-10-19: In the same report, Fifth Third said that it completed the systems conversion of Comerica and that the full $850 million run rate of yearly cost savings is in place for Q4 2026. For Q4 2026, it expects net interest income to rise 2.5% to 3.5% and noninterest expense to fall 2% to 3%. - 2026-09-24: Fifth Third gave notice that it will redeem all of its $500 million of 1.707% senior notes due 2027. - 2026-07-17: Fifth Third reported Q2 2026 results. Reported EPS was $0.83, and adjusted EPS was $1.02, which excludes $0.19 of merger charges and other items. - 2026-02-01: Fifth Third completed its merger with Comerica. Each Comerica share became 1.8663 Fifth Third shares, and each Comerica preferred share became a new Fifth Third preferred share with similar terms. ## Latest news and filings - Last earnings: 2026-10-19 (8-K: https://www.sec.gov/Archives/edgar/data/35527/000003552726000229/) - Next earnings: 2027-01-19 (expected; the company has not confirmed it) | Filed | Form | Headline | Period end | XBRL document | Link | | --- | --- | --- | --- | --- | --- | | 2026-11-03 | 10-Q | Quarterly report for the period ended Sep 30, 2026 | 2026-09-30 | fitb-20260930 | https://www.sec.gov/Archives/edgar/data/35527/000003552726000243/fitb-20260930.htm | | 2026-10-19 | 8-K | Earnings release and Investor disclosure | | fitb-20261019 | https://www.sec.gov/Archives/edgar/data/35527/000003552726000229/ | | 2026-09-24 | 8-K | Other company news | | fitb-20260924 | https://www.sec.gov/Archives/edgar/data/35527/000003552726000224/fitb-20260924.htm | | 2026-09-23 | 8-K | Other company news | | fitb-20260922 | https://www.sec.gov/Archives/edgar/data/35527/000003552726000222/fitb-20260922.htm | | 2026-09-14 | 8-K | Investor disclosure | | fitb-20260914 | https://www.sec.gov/Archives/edgar/data/35527/000003552726000219/fitb-20260914.htm | | 2026-08-21 | 8-K | Other company news | | fitb-20260821 | https://www.sec.gov/Archives/edgar/data/35527/000003552726000209/fitb-20260821.htm | | 2026-08-04 | 10-Q | Quarterly report for the period ended Jun 30, 2026 | 2026-06-30 | fitb-20260630 | https://www.sec.gov/Archives/edgar/data/35527/000003552726000202/fitb-20260630.htm | | 2026-07-30 | 8-K | Investor disclosure | | fitb-20260730 | https://www.sec.gov/Archives/edgar/data/35527/000003552726000197/fitb-20260730.htm | | 2026-07-17 | 8-K | Earnings release and Investor disclosure | | fitb-20260717 | https://www.sec.gov/Archives/edgar/data/35527/000003552726000193/ | | 2026-06-10 | 8-K | Other company news | | | https://www.sec.gov/Archives/edgar/data/35527/000119312526265928/d129179d8k.htm | Every filing on SEC EDGAR (CIK 35527): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000035527&type=&dateb=&owner=include&count=40 ## Risks - Medium: Fifth Third must keep the clients and bankers of Comerica after the systems conversion. Losses of clients in Texas, California or Michigan would lower deposits and fees, and merger charges were $225 million before tax in Q3 2026. - Medium: Competition for deposits is rising. The rate paid on interest-bearing liabilities rose to 2.50% in Q3 2026 from 2.44% in Q2, and higher deposit costs or lower market rates can reduce net interest income. - Medium: Net charge-offs were 0.31% of loans in Q3 2026, and Fifth Third expects 0.30% to 0.35% in Q4. A weaker economy would raise losses on commercial and consumer loans. - Medium: Unrealized losses on securities and hedges made accumulated other comprehensive income minus $4.9 billion at September 30, 2026. Higher long-term interest rates lower tangible book value and can limit capital returns. - Low: Interchange litigation matters cost $34 million before tax in Q3 2026, and other lawsuits and regulatory changes can add costs. ## Links - Page: https://picks.utilarium.app/company/FITB/ - History of changes: https://picks.utilarium.app/company/FITB/history/ - JSON with full history: https://picks.utilarium.app/data/company/FITB.json > Picks is a personal record of stock picks. It gives general opinions about stocks, including a "Top pick" label. They are not tailored to your needs, goals or risk tolerance. Kevin is not a registered adviser and relies on the general-advice exemption in Canadian securities law (NI 31-103 s.8.25). Do your own research, or ask a registered adviser. Kevin may hold any stock on this site. Prices, intrinsic values and ratings can be delayed or wrong; check the original source. Full disclaimer: /disclaimer/.