Company: FITBI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0000035527-25-000212
Chunk: 213

Company: FIFTH THIRD BANCORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 1
Chunk 213
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 forma analysis requirements and interest rate sensitivity. The Bancorp requires a valuation of real estate collateral, which may include third-party appraisals, be performed at the time of origination and renewal in accordance with regulatory requirements and on an as-needed basis when market conditions justify. The Bancorp maintains an appraisal review department to order and review third-party appraisals in accordance with regulatory requirements. 

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

Nonaccrual assets with relationships exceeding $1 million are reviewed quarterly to assess the appropriateness of the value ascribed in the assessment of charge-offs and specific reserves. Additionally, collateral values are also reviewed at least annually for all criticized assets.

The Bancorp assesses all real estate and non-real estate collateral securing a loan and considers all cross-collateralized loans in the calculation of the LTV ratio. The following tables provide detail on the most recent LTV ratios for commercial mortgage loans greater than $1 million, excluding commercial mortgage loans that are individually evaluated for an ACL and loans which do not have real estate as the primary collateral. The Bancorp does not typically aggregate the LTV ratios for commercial mortgage loans less than $1 million.

TABLE 29:  Commercial Mortgage Loans Outstanding by LTV, Loans Greater Than $1 MillionAs of September 30, 2025 ($ in millions)LTV > 100%LTV 80-100%LTV < 80%Commercial mortgage owner-occupied loans$379 543 3,342 Commercial mortgage nonowner-occupied loans— 91 5,561 Total$379 634 8,903 TABLE 30:  Commercial Mortgage Loans Outstanding by LTV, Loans Greater Than $1 MillionAs of December 31, 2024 ($ in millions)LTV > 100%LTV 80-100%LTV < 80%Commercial mortgage owner-occupied loans$53 1373,753Commercial mortgage nonowner-occupied loans— 2885,615Total$53 4259,368

The Bancorp views nonowner-occupied commercial real estate as a higher credit risk product compared to some other commercial loan portfolios due to the higher volatility of the industry.

The following tables provide an analysis of nonowner-occupied commercial real estate loans, disaggregated by property location (excluding loans held for sale):

TABLE 31:  Nonowner-Occupied Commercial Real Estate (excluding loans held for sale)(a)As of September 30