Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 286

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 286
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 the Bancorp were included in available-for-sale debt and other securities in the Condensed Consolidated Balance Sheets. 

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

8.  Sales of Receivables and Servicing Rights

Residential Mortgage Loan SalesThe Bancorp sold residential mortgage loans during the three and six months ended June 30, 2025 and 2024. In those sales, the Bancorp obtained servicing responsibilities and provided certain standard representations and warranties; however, the investors have no recourse to the Bancorp’s other assets for failure of debtors to pay when due. The Bancorp receives servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates.Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows:For the three months endedJune 30,For the six months endedJune 30,($ in millions)2025202420252024Residential mortgage loan sales(a)$1,171 761 $2,174 1,474 Origination fees and gains on loan sales19 18 34 33 Gross mortgage servicing fees73 78 147 155 (a)Represents the unpaid principal balance at the time of the sale.Servicing RightsThe Bancorp measures all of its mortgage servicing rights at fair value with changes in fair value reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income.The following table presents changes in the servicing rights related to residential mortgage loans for the six months ended June 30:($ in millions)20252024Balance, beginning of period$1,704 1,737 Servicing rights originated25 21 Servicing rights sold— (5)Changes in fair value:Due to changes in inputs or assumptions(a)(25)51 Other changes in fair value(b)(75)(73)Balance, end of period$1,629 1,731 (a)Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates.(b)Primarily reflects changes due to realized cash flows and the passage of time.The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the value of the MSR portfolio which may include the