Fifth Third Bancorp in Cincinnati reported a drop in fourth-quarter profit on lower interest income from lending, and from decreased fees from mortgage banking.

Net income at the $139 billion-asset company fell 4% from a year earlier, to $362 million, or 43 cents per share.

The results included three nonrecurring items, which in the aggregate offset each other. Fifth Third recorded a $37 million after-tax positive valuation adjustment on its warrant in payments provider Vantiv, adding 4 cents per share to earnings. Fifth Third also recorded an after-tax provision expense of $15 million, or 2 cents per share, related to its transfer of mortgage loans classified as troubled debt restructurings to held-for-sale status; and an after-tax charge of $13 million, or 2 cents per share, related to the valuation of a Visa total return swap.

Net interest income fell 2% to $883 million. The net interest margin fell 25 basis points to 2.96%.

Fee income fell 7% to $918 million, including a 51% year-over-year decline in mortgage-banking income. Noninterest expense fell 7% to $918 million.

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