Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 207

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 207
---
 quarter of 2013, the Bancorp’s newly originated home equity lines of credit have a 10-year interest-only draw period followed by a 20-year amortization period. The home equity line of credit previously offered by the Bancorp was a revolving facility with a 20-year term, minimum payments of interest-only and a balloon payment of principal at maturity. Approximately 17% of the outstanding balances of the Bancorp’s portfolio of home equity lines of credit have a balloon structure at maturity. Peak maturity years for the balloon home equity lines of credit are 2025 to 2028 and approximately $490 million of the balances mature before December 31, 2028.

38

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

The home equity portfolio is managed in two primary groups: loans outstanding with a combined LTV greater than 80% and those loans with an LTV of 80% or less, based upon appraisals at origination. For additional information on these loans, refer to Tables 37, 38 and 39. Of the total $4.5 billion of outstanding home equity loans:

•73% reside within the Bancorp’s Midwest footprint of Ohio, Michigan, Illinois, Indiana and Kentucky as of June 30, 2025;

•76% of non-delinquent borrowers made at least one payment greater than the minimum payment during the three months ended June 30, 2025; and

•The portfolio had a weighted-average refreshed FICO score of 749 at June 30, 2025.

The Bancorp actively manages lines of credit and makes adjustments in lending limits when it believes it is necessary based on FICO score deterioration and property devaluation. The Bancorp does not routinely obtain appraisals on performing loans to update LTVs after origination. However, the Bancorp monitors the local housing markets by reviewing various home price indices and incorporates the impact of the changing market conditions in its ongoing credit monitoring processes.

The following table provides an analysis of home equity portfolio loans outstanding disaggregated based upon refreshed FICO score as of:

TABLE 36:  Home Equity Portfolio Loans Outstanding by Refreshed FICO ScoreJune 30, 2025December 31, 2024($ in millions)Outstanding% of TotalOutstanding% of TotalSenior Liens:FICO ≤ 659$104 2  %$111 3  %FICO 660-719160 3 160 4