Company: FITBI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000035527-25-000171
Chunk: 299

Company: FIFTH THIRD BANCORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 1
Chunk 299
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1,038 1 - 5 years(a)857 Over 5 years4 Total letters of credit$1,899 (a)Includes $2 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire in less than 1 year and $2 that expire between 1 - 5 years.Standby letters of credit accounted for approximately 99% of total letters of credit at both June 30, 2025 and December 31, 2024 and are considered guarantees in accordance with U.S. GAAP. Approximately 74% and 76% of the total standby letters of credit were collateralized as of June 30, 2025 and December 31, 2024, respectively. In the event of nonperformance by the customers, the Bancorp has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and marketable securities. The reserve related to these standby letters of credit, which was included in the total reserve for unfunded commitments, was $10 

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

million and $12 million at June 30, 2025 and December 31, 2024, respectively. The Bancorp monitors the credit risk associated with letters of credit using the same standard regulatory risk rating systems utilized for its loan and lease portfolio.Risk ratings of outstanding letters of credit under this risk rating system are summarized in the following table as of:($ in millions)June 30,2025December 31,2024Pass$1,766 1,779 Special mention16 60 Substandard112 110 Doubtful5 3 Total letters of credit$1,899 1,952 Forward contracts related to residential mortgage loans measured at fair valueThe Bancorp enters into forward contracts and mortgage options to economically hedge the change in fair value of certain residential mortgage loans held for sale, and certain residential mortgage portfolio loans measured at fair value, due to changes in interest rates. The outstanding notional amounts of these forward contracts are included in the summary of significant commitments table for all periods presented.Other commitmentsThe Bancorp has entered into a limited number of agreements for work related to banking center construction and to purchase goods or services.Contingent LiabilitiesLegal claimsThere are legal claims pending against the Bancorp and its subsidiaries that have arisen