Company: FITBI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0000035527-25-000212
Chunk: 180

Company: FIFTH THIRD BANCORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 180
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 be used if more appropriate for the circumstances. These valuations are based on unobservable inputs and therefore are classified in Level 3 of the fair value hierarchy. The Bancorp did not recognize impairment charges and recognized an immaterial amount of impairment charges on its private equity investments for the three and nine months ended September 30, 2025, respectively, and did not recognize impairment charges for both the three and nine months ended September 30, 2024. The carrying value of the Bancorp’s private equity investments still held as of September 30, 2025 includes a cumulative $15 million of impairment charges recognized since adoption of the measurement alternative to fair value on January 1, 2018.Fair Value OptionThe Bancorp elected to measure certain residential mortgage loans held for sale under the fair value option as allowed under U.S. GAAP. Electing to measure residential mortgage loans held for sale at fair value reduces certain timing differences and better matches changes in the value of these assets with changes in the value of derivatives used as economic hedges for these assets. Management’s intent to sell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment and maintained in the Bancorp’s loan portfolio. In such cases, the loans will continue to be measured at fair value.Fair value changes recognized in earnings for residential mortgage loans held at September 30, 2025 and 2024 for which the fair value option was elected included losses of $24 million and gains of $2 million, respectively. These changes are reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income. Valuation adjustments related to instrument-specific credit risk for residential mortgage loans measured at fair value negatively impacted the fair value of those loans by an immaterial amount at both September 30, 2025 and December 31, 2024. Interest on loans measured at fair value is accrued as it is earned using the effective interest method and is reported as interest income in the Condensed Consolidated Statements of Income.The following table summarizes the fair value and the unpaid principal balance for residential mortgage loans measured at fair value as of:September 30, 2025 ($ in millions)AggregateFair ValueAggregate UnpaidPrincipal BalanceResidential mortgage loans measured at fair value$672 668 Past due loans of 30-89 days2 2 Past due loans