Company: FITBI
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000035527-25-000079
Chunk: 216

Company: FIFTH THIRD BANCORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 216
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 allowances, consideration is given to the effect that changing economic conditions may have on the Bancorp’s customers.

106 Fifth Third Bancorp

Table of Contents 

Overall, the collective evaluation process requires significant management judgment when determining the estimation methodology and inputs into the models, as well as in evaluating the reasonableness of the modeled results and the appropriateness of qualitative adjustments.

At December 31, 2024, the key qualitative factors included adjustments to the expected credit losses on the commercial loan portfolio associated with the current economic environment. 

The ALLL for the commercial portfolio segment was $1.2 billion at December 31, 2024, which includes adjustments for the qualitative factors noted above.

Considering the estimation and judgment in determining adjustments for such qualitative factors, our audit of the ALLL and the related disclosures involved subjective judgment about the qualitative adjustments to the commercial portfolio segment ALLL.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the qualitative adjustments for the commercial portfolio segment ALLL included the following, among others:

•We tested the effectiveness of the Bancorp’s controls over the qualitative adjustments to the ALLL.

•We assessed the reasonableness of, and evaluated support for, key qualitative adjustments based on market conditions, external market data and commercial portfolio performance metrics.

•We tested the completeness and accuracy and evaluated the relevance of the key data used as inputs to the qualitative adjustment estimation process, including: 

◦Portfolio segment loan balances and other borrower-specific data

◦Relevant macroeconomic indicators and data

•With the assistance of our credit specialists, we tested the mathematical accuracy of the underlying support used as a basis for the qualitative adjustments. 

/s/ Deloitte & Touche LLP

Cincinnati, Ohio 

February 24, 2025

We have served as the Company’s auditor since 1970.

107 Fifth Third Bancorp

Table of ContentsCONSOLIDATED BALANCE SHEETS

As of December 31 ($ in millions, except share data)20242023AssetsCash and due from banks$3,014 3,142 Other short-term investments(a)17,120 22,082 Available-for-sale debt and other securities (amortized cost of $43,878 and $55,789)39,547 50,419 Held-to-maturity securities (fair value of $10,965 and $2)11,278 2 Trading debt securities1,185 899 Equity securities341 613 Loans