Company: FITBI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0000035527-25-000212
Chunk: 310

Company: FIFTH THIRD BANCORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 1
Chunk 310
---
, counterparty risk and market risk in excess of the amounts recognized in the Condensed Consolidated Balance Sheets. The creditworthiness of counterparties for all instruments and agreements is evaluated on a case-by-case basis in accordance with the Bancorp’s credit policies. The Bancorp’s significant commitments, contingent liabilities and guarantees in excess of the amounts recognized in the Condensed Consolidated Balance Sheets are discussed in the following sections.CommitmentsThe Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of:($ in millions)September 30,2025December 31,2024Commitments to extend credit$82,736 80,680 Letters of credit2,102 1,952 Forward contracts related to residential mortgage loans measured at fair value1,412 881 Capital commitments for private equity investments258 219 Capital expenditures165 80 Purchase obligations6 27 Commitments to extend creditCommitments to extend credit are agreements to lend, typically having fixed expiration dates or other termination clauses that may require payment of a fee. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. The Bancorp is exposed to credit risk in the event of nonperformance by the counterparty for the amount of the contract. Fixed-rate commitments are also subject to market risk resulting from fluctuations in interest rates and the Bancorp’s exposure is limited to the replacement value of those commitments. As of September 30, 2025 and December 31, 2024, the Bancorp had a reserve for unfunded commitments, including letters of credit, totaling $151 million and $134 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to extend credit using the same standard regulatory risk rating systems utilized for its loan and lease portfolio.Risk ratings of outstanding commitments to extend credit under this risk rating system are summarized in the following table as of:($ in millions)September 30,2025December 31,2024Pass$81,006 78,734 Special mention701 850 Substandard987 1,095 Doubtful42 1 Total commitments to extend credit$82,736 80,680 Letters of creditStandby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of