Company: FITBI
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000035527-25-000079
Chunk: 365

Company: FIFTH THIRD BANCORP
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 365
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 TechniqueSignificant Unobservable InputsRanges ofInputsWeighted-AverageCommercial loans held for sale$6 Comparable company analysisMarket comparable transactionsNMNMCommercial loans and leases168 Appraised valueCollateral valueNMNMConsumer and residential mortgage loans215 Appraised valueCollateral valueNMNMOREO2 Appraised valueAppraised valueNMNMBank premises and equipment7 Appraised valueAppraised valueNMNMAs of December 31, 2023 ($ in millions)Financial InstrumentFair ValueValuation TechniqueSignificant Unobservable InputsRanges of  Inputs  Weighted-AverageCommercial loans held for sale$1 Comparable company analysisMarket comparable transactionsNMNMCommercial loans and leases163 Appraised valueCollateral valueNMNMConsumer and residential mortgage loans189 Appraised valueCollateral valueNMNMOREO18 Appraised valueAppraised valueNMNMBank premises and equipment15 Appraised valueAppraised valueNMNMOperating lease equipment2 Appraised valueAppraised valueNMNMCommercial loans held for saleThe Bancorp estimated the fair value of certain commercial loans held for sale during the years ended December 31, 2024 and 2023. These valuations were primarily based on applying unobservable inputs such as an estimated market discount to the unpaid principal balance of the loans (Level 3 of the valuation hierarchy).Portfolio loans and leases During the years ended December 31, 2024 and 2023, the Bancorp recorded nonrecurring adjustments to certain collateral-dependent portfolio loans and leases. When a loan is collateral-dependent, the fair value of the loan is generally based on the fair value less cost to sell of the underlying collateral supporting the loan and therefore these loans were classified within Level 3 of the valuation hierarchy. In cases 

192 Fifth Third Bancorp

Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

where the amortized cost basis of the loan or lease exceeds the estimated net realizable value of the collateral, then an ALLL is recognized, or a charge-off once the remaining amount is considered uncollectible. OREO During the years ended December 31, 2024 and 2023, the Bancorp recorded nonrecurring adjustments to certain commercial and residential real estate properties and branch-related real estate no longer intended to be used for banking purposes classified as OREO and measured at the lower of carrying amount or fair value. These nonrecurring losses were primarily due to declines in