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Loan performance on home-equity assets improved during the second quarter at Fifth Third Bancorp. The yield on the home-equity portfolio has soared during the past 12 months.
Fifth Third closed out the first half of 2023 with $3.911 billion in home-equity assets, according to second-quarter earnings data reported Thursday. The portfolio was slightly less than $3.958 billion three months prior. But the balance edged up from $3.906 billion one year prior.
The average yield on the bank’s home-equity investments was 7.39 percent, climbing from 6.47 percent in the preceding three-month period and soaring from 3.81 percent a year prior.
On a weighted-average basis, the FICO was 767 and the loan-to-value ratio at origination was 67 percent. Both metrics were unchanged from the previous period.
Delinquency of at least 30 days, including non-performing loans, was 2.20 percent as of mid-year, falling from 2.33 percent at the close of the first quarter and 2.45 percent on the same date in 2022.
Net income at the bank-holding company crept up to $601 million from $558 million in the first quarter and $562 million in the second-quarter 2022.
Variable-rate loans accounted for 92 percent of the financial institution’s home-equity portfolio, while the remaining 8 percent were fixed rate.
“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,” Fifth Third President and CEO Tim Spence said in the statement. “Going forward, we will continue to follow our guiding principles of stability, profitability, and growth — in that order.”
Fifth Third grew the number of banking centers in operation to 1,072 from 1,069 as of March 31. Employee count, however, was trimmed to 19,225 from 19,474.
