trending Market Intelligence /marketintelligence/en/news-insights/trending/_6gQM5qTn_vr6AiR2Im0Zg2 content esgSubNav
In This List

Fifth Third reports spike in criticized reserve-based energy loans

Blog

Insight Weekly: Private equity slows; SPAC underwriters retreat; carbon capture boost

Podcast

Street Talk | Episode 98: Regulatory scrutiny having cooling effect on community bank M&A

Blog

Insight Weekly: M&A outlook; US community bank margins; green hydrogen players' EU expansion

Podcast

Street Talk | Episode 97: Recessionary fears still keeping bank investors on the sidelines


Fifth Third reports spike in criticized reserve-based energy loans

Fifth Third Bancorpdisclosed that nearly half of its outstanding energy portfolio, excluding power,was marked as criticized in the first quarter.

In a May 6 quarterly filing, the bank disclosed $699 millionof criticized loans in its non-power producing energy portfolio, out of overalloutstanding balances of $1.57 billion, as of March 31. Most of the impaired loanswere in the bank's reserve-based lending portfolio, which consists of $542 millionof criticized loans and just $197 million of loans that received a "pass"grade.

A year ago, criticized loans in its non-power producing energyportfolio totaled $165 million from overall outstanding balances of $1.71 billion.

Also, the bank attributed a $202 million quarter-over-quarterincrease in its nonaccrual loans and leases primarily to an increase in reserve-basedlending energy portfolio.

Separately, the company disclosed the outcomes of a couple acceleratedshare repurchase transactions and some debt issuance. The company repurchased $215million worth of shares in a deal that settled Jan. 14, and it repurchased roughly$240 million worth of shares in a separate deal that settled April 11. Also, thecompany said that on March 15 it issued and sold $1.5 billion of unsecured banknotes, evenly split between 2.30% senior notes with a three-year maturity and 3.85%subordinated notes with a maturity of 10 years.