Company: FITBI
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000035527-25-000137
Chunk: 266

Company: FIFTH THIRD BANCORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 1
Chunk 266
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 related to residential mortgage loans measured at fair value805 881 Capital commitments for private equity investments217 219 Capital expenditures113 80 Purchase obligations20 27 Commitments to extend creditCommitments to extend credit are agreements to lend, typically having fixed expiration dates or other termination clauses that may require payment of a fee. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. The Bancorp is exposed to credit risk in the event of nonperformance by the counterparty for the amount of the contract. Fixed-rate commitments are also subject to market risk resulting from fluctuations in interest rates and the Bancorp’s exposure is limited to the replacement value of those commitments. As of March 31, 2025 and December 31, 2024, the Bancorp had a reserve for unfunded commitments, including letters of credit, totaling $140 million and $134 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to extend credit using the same standard regulatory risk rating systems utilized for its loan and lease portfolio.Risk ratings of outstanding commitments to extend credit under this risk rating system are summarized in the following table as of:($ in millions)March 31,2025December 31,2024Pass$78,477 78,734 Special mention750 850 Substandard1,043 1,095 Doubtful2 1 Total commitments to extend credit$80,272 80,680 Letters of creditStandby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of March 31, 2025:($ in millions)Less than 1 year(a)$963 1 - 5 years(a)911 Over 5 years5 Total letters of credit$1,879 (a)Includes $1 and $3 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 between 1 - 5 years, respectively.Standby letters of credit accounted for approximately 99% of total letters of credit at both March 31, 2025 and December 31, 2024 and are considered guarantees in accordance with U.S. GAAP. Approximately 75% and 76% of the total standby letters of credit were collateral