Company: FITBI
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000035527-25-000079
Chunk: 66

Company: FIFTH THIRD BANCORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7A
Chunk 66
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63 million and $50 million, respectively, for sales-type leases.The following table presents undiscounted cash flows for both direct financing and sales-type portfolio leases for 2025 through 2029 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease receivables as follows:As of December 31, 2024 ($ in millions)Direct FinancingLeasesSales-Type Leases2025$197 653 2026169 508 2027137 438 202876 313 202953 172 Thereafter69 229 Total undiscounted cash flows$701 2,313 Less: Difference between undiscounted cash flows and discounted cash flows70 211 Present value of lease payments (recognized as lease receivables)$631 2,102 The lease residual value represents the present value of the estimated fair value of the leased equipment at the end of the lease. The Bancorp performs quarterly reviews of residual values associated with its leasing portfolio considering factors such as the subject equipment, structure of the transaction, industry, prior experience with the lessee and other factors that impact the residual value to assess for impairment. The Bancorp maintained an allowance of $16 million and $13 million at December 31, 2024 and 2023, respectively, to cover the losses that are expected to be incurred over the remaining contractual terms of the related leases, including the potential losses related to the lease residual value. Refer to Note 6 for additional information on credit quality and the ALLL.

131 Fifth Third Bancorp

Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

6. Credit Quality and the Allowance for Loan and Lease Losses

The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and leases are further disaggregated by class.Allowance for Loan and Lease LossesThe following tables summarize transactions in the ALLL by portfolio segment for the years ended December 31:2024 ($ in millions)CommercialResidential MortgageConsumerTotal    Balance, beginning of period$1,130 145 1,047 2,322 Losses charged-off(a)(267)(2)(417)(686)Recoveries of losses previously charged-off(a)23 4 127 154 Provision for (benefit from) loan and lease losses268 (1)295 562 Balance, end of period$1,154 146