Loans and Leases

3 Months Ended

Mar. 31, 2025

The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. The Bancorp’s commercial loan and lease portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses that are expected to be incurred over the remaining contractual terms of the related loans and leases. For further information on credit quality and the ALLL, refer to Note 6.

The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans classified based upon product or collateral as of:


($ in millions)	March 31, 2025		December 31, 2024
Loans and leases held for sale:
Commercial and industrial loans	$	28	15
Commercial mortgage loans	—		22
Commercial construction loans	—		29

Residential mortgage loans	445		574
Total loans and leases held for sale	$	473	640
Portfolio loans and leases:
Commercial and industrial loans	$	53,700	52,271
Commercial mortgage loans	12,357		12,246
Commercial construction loans	5,952		5,588
Commercial leases	3,128		3,188
Total commercial loans and leases	$	75,137	73,293
Residential mortgage loans	$	17,581	17,543
Home equity	4,265		4,188
Indirect secured consumer loans	16,804		16,313
Credit card	1,660		1,734
Solar energy installation loans	4,262		4,202
Other consumer loans	2,482		2,518
Total consumer loans	$	47,054	46,498
Total portfolio loans and leases	$	122,191	119,791

Portfolio loans and leases are recorded net of unearned income, which totaled $383 million and $380 million as of March 31, 2025 and December 31, 2024, respectively. The amortized cost basis of loans and leases excludes accrued interest receivable of $568 million and $566 million at March 31, 2025 and December 31, 2024, respectively, which is presented as a component of other assets in the Condensed Consolidated Balance Sheets. Additionally, portfolio loans and leases are recorded net of unamortized premiums and discounts, deferred direct loan origination fees and costs associated with loans and valuation adjustments associated with loans measured at fair value. These items totaled a net discount of $279 million and $324 million as of March 31, 2025 and December 31, 2024, respectively, of which $898 million and $901 million of net discount was related to solar energy installation loans, respectively.

The Bancorp’s FHLB and FRB borrowings are primarily secured by loans. The Bancorp had loans of $14.8 billion and $15.1 billion as of March 31, 2025 and December 31, 2024, respectively, pledged to the FHLB, and loans of $58.3 billion and $55.3 billion as of March 31, 2025 and December 31, 2024, respectively, pledged to the FRB.

The following table presents a summary of net charge-offs:


	For the three months ended March 31,
($ in millions)	2025		2024
Commercial and industrial loans	$	52	35
Commercial mortgage loans	10		—

Commercial leases	2		—


Indirect secured consumer loans	21		24
Credit card	17		18
Solar energy installation loans	18		12
Other consumer loans	16		21
Total net charge-offs	$	136	110

The following table presents the income recognized related to leases where the Bancorp is the lessor:


		For the three months ended March 31,
($ in millions)	Condensed Consolidated Statements of Income Caption	2025		2024
Direct financing leases	Interest and fees on loans and leases	$	10	9
Sales-type leases	Interest and fees on loans and leases	26		18
Operating leases	Commercial banking revenue	20		28