Fifth Third Bank’s $5.2 billion mortgage increase by 2025

“On the Southeast Side, we are expanding our footprint into some of the fastest-growing markets in the U.S. We will be in 17 of the top 20 fastest-growing major metros in the country, and specifically in the emerging retail banking markets of Texas and California,” he added.

“In Texas, it’s going to allow us to get to quite rapid density quickly. They have, I think, 101 branches there today, and as part of the announcement we said we would invest and build 150 new de novos over the next four or five years. And so we’ll get to 250 branches by 2030.”

Speaking at HousingWire’s Mortgage Banking Summit on Tuesday, Sias said mortgages remain central to the bank’s strategy. “Mortgage is not just a product; it is the ultimate relationship builder,” he said.

According to the bank, households with a mortgage are significantly more likely to remain long-term customers than households with only a checking account, with retention rates having improved in recent years. Fifth and Third said mortgages also helped generate new deposits through the relationship pricing program and expansion in southern markets.

Under Jay Plum, who became head of consumer lending in 2023, Fifth Third has expanded its leadership team and launched programs focused on first-time homebuyers and affordable lending. The bank reported a 16% increase in mortgage volume between 2023 and 2024, along with a 39% increase in private and direct lending.

Fifth Third also said its home equity loan volume will increase 60% year over year by 2025. The bank highlighted its neighborhood program, which has invested $255 million in ten neighborhoods to support housing and economic development.

Opportunities in the Southern States, Home Loans

Sias said the bank’s growth is driven by a focus on “advice-driven lending” and an expansion of local sales teams to better serve homebuyers.

“We see tremendous opportunity in Florida,” Sias said, noting that the bank operates about 180 branches in the state but is still “significantly underperformed” in mortgage lending. Fifth Third plans to double its sales force there and selectively hire experienced mortgage brokers, he noted.

Outside of Florida, Sias cited opportunities in the Carolinas, Tennessee and Georgia, other areas where the bank’s footprint and sales teams remain smaller relative to market potential. “We are underperformed in all of these markets compared to where we could be today,” he said.

Sias said Fifth Third’s strategy focuses on supporting its existing branch network, increasing awareness that the bank is “in the mortgage business” and continuing to grow its sales force without overpaying for talent. “We want to attract the right people who support our vision and our ‘family, not a file’ philosophy,” he said.

The upcoming acquisition of Comerica will open additional growth opportunities in Texas and California, Sias said. Fifth Third aims to hire 30 to 50 loan officers in Texas over the next two years.

Population growth and migration patterns also influence the strategy. “We did a lot of research into high-growth markets,” Sias said. “We have to follow the population, and all those markets are growing faster than the national average.”

To serve a broader customer base, Fifth Third offers more than 40 mortgage products, according to Sias. These include first-time homebuyer programs, construction and renovation loans, affordable housing options, and multiple down payment assistance programs. The bank also participates in government bond programs in its eleven states.

Sias said Fifth Third has seen increased demand for home equity and rehabilitation loans as homeowners with low mortgage rates choose to renovate rather than move. “Our home equity business has grown significantly over the last 12 to 18 months,” he said.