FITB changes
Pick any two versions below to diff them.
- Price
- $54.19
- Discount category
- Close to intrinsic value
- Next earnings
- Jan 19, 2027
- Next earnings is estimate
- Yes
- Company name
- added: Fifth Third Bancorp
- Sector
- added: Regional bank
- About
- added: 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
- added: 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.
- Risks
- added: 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. 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. 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. 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. Interchange litigation matters cost $34 million before tax in Q3 2026, and other lawsuits and regulatory changes can add costs.
- Balance sheet
- added: 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 Sep 30, 2026.
- Checkpoints
- added: Oct 19, 2026: Q3 2026 results: Comerica integration and credit. 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. 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. Pending. Watch: A return on tangible common equity of 19% or more and an efficiency ratio near 53% for 2027 pass; lower returns fail.
- Recent events
- added: Oct 19, 2026: 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. Oct 19, 2026: 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%. Sep 24, 2026: Fifth Third gave notice that it will redeem all of its $500 million of 1.707% senior notes due 2027. Jul 17, 2026: 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. Feb 1, 2026: 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.