Cincinnati-based Fifth Third Bancorp (FITB) reported first quarter income of $88 million, or  10 cents per share, compared to a loss of $72 million, or 9 cents per share a year ago. The residential mortgage loan portfolio of $9.3 billion was up 16% compared with the first quarter 2010. Residential mortgage average loan balances benefited from the continued retention of certain shorter-term fixed-rate residential mortgages, largely branch originated, Fifth Third said. The regional bank also announced it repaid more than $3.4 billion of government bailout funds under the Troubled Asset Relief Program. Excluding the TARP expense, Fifth Third earned $265 million, or 27 cents per share during the first three months of 2011. Repaying TARP bailout funds dragged earnings lower. The accretion of bonds, sold below face value, accelerated in the quarter and reduced net income available to common shareholders by $153 million. CEO Kevin Kabat of Fifth Third said, “we redeemed the preferred stock investment purchased by the U.S. Treasury under the TARP program, as well as the associated warrant.” “Fifth Third never issued debt guaranteed by the (Federal) Temporary Liquidity Guarantee Program and we have thus completely exited all crisis-era government programs,” he added. Write to Jacob Gaffney. Follow him on Twitter @JacobGaffney.