Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 73

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 7
Chunk 73
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 quarter of 2025 by a qualitative adjustment reducing the impact of economic factors associated with the commercial and industrial loan expected credit loss models.

The Bancorp’s quantitative credit loss models are sensitive to changes in economic forecast assumptions over the reasonable and supportable forecast period. Applying a 100% probability weighting to the Downside scenario rather than using the probability-weighted three scenario approach would result in an increase in the quantitative ACL of approximately $2.2 billion. This sensitivity calculation only reflects the impact of changing the probability weighting of the scenarios in the quantitative credit loss models and excludes any additional considerations associated with the qualitative component of the ACL that might be warranted if probability weights were adjusted.

The following table provides a rollforward of the Bancorp’s ACL:

TABLE 50:  Changes in Allowance for Credit LossesFor the three months endedJune 30,For the six months endedJune 30,($ in millions)2025202420252024ALLL:Balance, beginning of period$2,384 2,318 2,352 2,322 Losses charged-off(a)(194)(182)(366)(328)Recoveries of losses previously charged-off(a)55 38 90 74 Provision for loan and lease losses167 114 336 220 Balance, end of period$2,412 2,288 2,412 2,288 Reserve for unfunded commitments:Balance, beginning of period$140 154 134 166 Provision for (benefit from) the reserve for unfunded commitments6 (17)12 (29)Balance, end of period$146 137 146 137 

(a)For the three and six months ended June 30, 2025, the Bancorp recorded $5 and $10, respectively, in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements, compared to $7 and $15 for the three and six months ended June 30, 2024, respectively. 

47

Table of ContentsManagement’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The following table provides an attribution of the Bancorp’s ALLL to portfolio loans and leases:

TABLE 51:  Attribution of Allowance for Loan and Lease Losses to Portfolio Loans and LeasesAs of ($ in millions)June 30,2025December 31,202