Company: FITBI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0000035527-25-000212
Chunk: 29

Company: FIFTH THIRD BANCORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 7
Chunk 29
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 a shift in business strategy in the fourth quarter of 2024 that has continued into 2025. Average commercial construction loans decreased $441 million, or 7%, for the three months ended September 30, 2025 compared to the same period in the prior year as payoffs exceeded draws on existing commitments and loan originations.

Average consumer loans increased $3.4 billion, or 7%, for the three months ended September 30, 2025 compared to the same period in the prior year primarily due to increases in average indirect secured consumer loans, average residential mortgage loans, average home equity and average solar energy installation loans, partially offset by a decrease in average other consumer loans. Average indirect secured consumer loans increased $2.0 billion, or 13%, for the three months ended September 30, 2025 compared to the same period in the prior year primarily driven by higher loan production during the fourth quarter of 2024 that has continued into 2025. Average residential mortgage loans increased $675 million, or 4%, for the three months ended September 30, 2025 compared to the same period in the prior year primarily driven by an increase in held-for-investment loan originations and loan purchase transactions completed in the second half of 2024. Average home equity loans increased $562 million, or 14%, for the three months ended September 30, 2025 compared to the same period in the prior year as loan originations and new advances exceeded payoffs, driven by increased marketing efforts. Average solar energy installation loans increased $365 million, or 9%, for the three months ended September 30, 2025 compared to the same period in the prior year primarily due to loan originations exceeding payoffs. Average other consumer loans decreased $214 million, or 8%, for the three months ended September 30, 2025 compared to the same period in the prior year primarily driven by paydowns of point-of-sale loans, including loans originated in connection with one third-party point-of-sale company with which the Bancorp discontinued the origination of new loans in September 2022.

18

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

Investment Securities

The Bancorp uses investment securities as a means of managing interest rate risk, providing collateral for pledging purposes and for liquidity risk management. The carrying value of total investment securities, which consist of available-for-sale debt and other securities, held-to-maturity securities, trading debt securities