Fifth Third Bancorp (Nasdaq: FITB) today reported second quarter 2012 net income of $385 million, compared with net income of $430 million in the first quarter of 2012 and net income of $337 million in the second quarter of 2011. After preferred dividends, second quarter 2012 net income available to common shareholders was $376 million or $0.40 per diluted share, compared with first quarter net income of $421 million or $0.45 per diluted share, and net income of $328 million or $0.35 per diluted share in the second quarter of 2011.
Second quarter 2012 noninterest income results included $56 million in positive valuation adjustments on the Vantiv warrant; $17 million in negative valuation adjustments associated with bank premises held-for-sale; and a $17 million reduction in other noninterest income related to the valuation of a total return swap entered into as part of the 2009 sale of Visa, Inc. Class B shares. Second quarter noninterest expense was reduced by $17 million related to affordable housing investments and FDIC insurance. Net gains on investment securities were $3 million. Second quarter net income taxes were seasonally higher by $19 million due to the seasonal expiration of employee stock options expense.
First quarter 2012 results included $115 million in pre-tax gains on the initial public offering of Vantiv, Inc., $46 million in positive valuation adjustments on the Vantiv warrant and put option, as well as $34 million of charges recorded in equity method earnings in other noninterest income related to Vantiv’s bank debt refinancing and debt termination charges. First quarter results also included $23 million in income from an agreement reached on certain outstanding disputes for non-income tax related assessments in noninterest expense; a $19 million charge to noninterest income related to the Visa total return swap, additions to litigation reserves of $13 million, debt termination charges of $9 million, and severance expense of $6 million. Net gains on investment securities were $9 million. Second quarter 2011 results included $29 million in positive valuation adjustments on the Vantiv warrant, debt extinguishment gains of $6 million and a $4 million charge related to the Visa total return swap. Net gains on investment securities were $6 million. Second quarter 2011 net income taxes were seasonally higher by $23 million due to the seasonal expiration of employee stock options expense.
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