Company: FITBI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000035527-25-000137
Chunk: 118

Company: FIFTH THIRD BANCORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 118
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ensed Consolidated Balance Sheets, are included in the previous tables for all periods presented. Certain CDC investments include undrawn liquidity and lending commitments which are included in the maximum exposure amount but not included in the Condensed Consolidated Balance Sheets. The Bancorp has no other liquidity arrangements or obligations to purchase assets of the VIEs that would expose the Bancorp to a loss. In certain arrangements, the general partner/managing member of the VIE has guaranteed a level of projected tax credits to be received by the limited partners/investor members, thereby minimizing a portion of the Bancorp’s risk.The Bancorp utilizes the proportional amortization method to account for its qualifying investments in projects that are related to certain income tax credit programs. These tax credit programs include the LIHTC program established under Section 42 of the IRC, the New Markets Tax Credit program established under Section 45D of the IRC and the Rehabilitation Investment Tax Credit program established under Section 47 of the IRC.At both March 31, 2025 and December 31, 2024, the Bancorp’s CDC investments included $2.0 billion of tax credit program investments accounted for under the proportional amortization method. The unfunded commitments related to these investments were $720 million and $741 million at March 31, 2025 and December 31, 2024, respectively. The unfunded commitments as of March 31, 2025 are expected to be funded from 2025 to 2044.

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Table of ContentsFifth Third Bancorp and SubsidiariesNotes to Condensed Consolidated Financial Statements (unaudited)

The following table summarizes the impacts to the Condensed Consolidated Statements of Income related to the Bancorp’s tax credit program investments:Condensed ConsolidatedStatements of Income Caption(a)For the three months ended March 31,($ in millions)20252024Proportional amortizationApplicable income tax expense$47 47 Tax credits and other benefits(b)Applicable income tax expense(56)(58)Changes in carrying amounts of equity method investments(c)Other noninterest expense 2 2 (a)The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during both the three months ended March 31, 2025 and 2024.(b)The related cash flows are classified as operating activities in the Condensed Consolidated Statements of Cash Flows primarily in net change in other assets.(c)These amounts pertain to tax