Fifth Third Bancorp in Cincinnati reported lower earnings because of a decline in mortgage revenue and a negative valuation adjustment on a payments subsidiary.

Net income in the third quarter fell 22% to $328 million, or 39 cents per share, from a year earlier. Total revenue at the $132 billion-asset company fell 12% to $1.4 billion.

Fee income fell 28% to $520 million. That figure included a 49% decline in mortgage banking revenue to $61 million.

Fee income also fell due to a $35 million after-tax adjustment in the valuation of Fifth Third's warrant in Vantiv, a payments business. Fifth Third has a 22% interest in Vantiv Holding, which is convertible into shares of Vantiv, and a warrant to buy more shares. Fifth Third has been gradually divesting its stake in Vantiv.

Meanwhile, net interest income, after a provision for loan and lease losses, fell 1% to $832 million. Fifth Third's net interest margin fell 21 basis points to 3.10%.

Noninterest expense fell 7% to $888 million.