Credit Quality and the Allowance for Loan and Lease Losses

3 Months Ended

Mar. 31, 2025

Receivables [Abstract]

Credit Quality and the Allowance for Loan and Lease Losses

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. Refer to Note 1 and Note 6 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2024 for additional information on the Bancorp’s accounting policies and estimation practices for the ALLL.

Allowance for Loan and Lease Losses

The following tables summarize transactions in the ALLL by portfolio segment:

For the three months ended March 31, 2025 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
Balance, beginning of period	$	1,154	146	1,052	2,352
Losses charged-off(a)	(67)		—	(106)	(173)
Recoveries of losses previously charged-off(a)	3		—	34	37
Provision for (benefit from) loan and lease losses	151		(7)	24	168
Balance, end of period	$	1,241	139	1,004	2,384

(a)The Bancorp recorded $6 in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements.

For the three months ended March 31, 2024 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
Balance, beginning of period	$	1,130	145	1,047	2,322
Losses charged-off(a)	(40)		—	(106)	(146)
Recoveries of losses previously charged-off(a)	5		—	31	36
Provision for (benefit from) loan and lease losses	46		(5)	65	106
Balance, end of period	$	1,141	140	1,037	2,318

(a)The Bancorp recorded $8 in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements.

The following tables provide a summary of the ALLL and related loans and leases, classified by portfolio segment:

As of March 31, 2025 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
ALLL:(a)
Individually evaluated	$	178	1	13	192
Collectively evaluated	1,063		138	991	2,192
Total ALLL	$	1,241	139	1,004	2,384
Portfolio loans and leases:(b)
Individually evaluated	$	563	136	101	800
Collectively evaluated	74,574		17,336	29,372	121,282
Total portfolio loans and leases	$	75,137	17,472	29,473	122,082

(a)Includes $1 related to commercial leveraged leases at March 31, 2025.

(b)Excludes $109 of residential mortgage loans measured at fair value and includes $241 of commercial leveraged leases, net of unearned income, at March 31, 2025.

As of December 31, 2024 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
ALLL:(a)
Individually evaluated	$	106	—	11	117
Collectively evaluated	1,048		146	1,041	2,235
Total ALLL	$	1,154	146	1,052	2,352
Portfolio loans and leases:(b)
Individually evaluated	$	395	131	96	622
Collectively evaluated	72,898		17,304	28,859	119,061
Total portfolio loans and leases	$	73,293	17,435	28,955	119,683

(a)Includes $1 related to commercial leveraged leases at December 31, 2024.

(b)Excludes $108 of residential mortgage loans measured at fair value and includes $248 of commercial leveraged leases, net of unearned income, at December 31, 2024.

CREDIT RISK PROFILE

Commercial Portfolio Segment

For purposes of monitoring the credit quality and risk characteristics of its commercial portfolio segment, the Bancorp disaggregates the segment into the following classes: commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leases.

To facilitate the monitoring of credit quality within the commercial portfolio segment, the Bancorp utilizes the following categories of credit ratings: pass, special mention, substandard, doubtful and loss. The five categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter.

The Bancorp defines term loans and leases as those having a fixed duration, repayment schedule and defined interest rate. For purposes of disclosing term loans by origination year, the Bancorp generally determines the origination date for loans and leases within the commercial portfolio as the date of the most recent credit decision or extension. Revolving and other loans include loans with revolving privileges and certain complex lending arrangements involving commitments made by the Bancorp under predefined terms, including loans with both revolving and non-revolving components, loans with delayed draw features or loans with interchangeable interest rate and repayment options that extend beyond the time of origination.

The following tables present the amortized cost basis of the Bancorp’s commercial portfolio segment, by class and vintage, disaggregated by credit risk rating:

As of March 31, 2025 ($ in millions)	Term Loans and Leases by Origination Year							Revolving and Other Loans
	2025		2024	2023	2022	2021	Prior		Total
Commercial and industrial loans:
Pass	$	965	2,812	1,180	2,302	1,096	746	41,472	50,573
Special mention	1		64	25	11	9	4	833	947
Substandard	5		115	100	179	84	41	1,507	2,031
Doubtful	—		—	—	2	—	—	147	149
Total commercial and industrial loans	$	971	2,991	1,305	2,494	1,189	791	43,959	53,700
Commercial mortgage owner-occupied loans:
Pass	$	312	777	761	798	609	578	1,827	5,662
Special mention	—		14	6	15	11	2	43	91
Substandard	12		56	41	34	30	43	241	457
Doubtful	—		—	—	—	—	—	—	—
Total commercial mortgage owner-occupied loans	$	324	847	808	847	650	623	2,111	6,210
Commercial mortgage nonowner-occupied loans:
Pass	$	110	593	745	763	173	628	2,613	5,625
Special mention	—		56	—	20	—	—	206	282
Substandard	2		31	22	29	—	2	154	240
Doubtful	—		—	—	—	—	—	—	—
Total commercial mortgage nonowner-occupied loans	$	112	680	767	812	173	630	2,973	6,147
Commercial construction loans:
Pass	$	—	2	7	—	28	—	4,972	5,009
Special mention	—		—	—	—	—	—	705	705
Substandard	—		—	—	—	—	—	238	238
Doubtful	—		—	—	—	—	—	—	—
Total commercial construction loans	$	—	2	7	—	28	—	5,915	5,952
Commercial leases:
Pass	$	395	1,220	308	256	277	612	—	3,068
Special mention	—		4	4	1	2	—	—	11
Substandard	—		—	10	11	4	24	—	49
Doubtful	—		—	—	—	—	—	—	—
Total commercial leases	$	395	1,224	322	268	283	636	—	3,128
Total commercial loans and leases:
Pass	$	1,782	5,404	3,001	4,119	2,183	2,564	50,884	69,937
Special mention	1		138	35	47	22	6	1,787	2,036
Substandard	19		202	173	253	118	110	2,140	3,015
Doubtful	—		—	—	2	—	—	147	149
Total commercial loans and leases	$	1,802	5,744	3,209	4,421	2,323	2,680	54,958	75,137

As of December 31, 2024 ($ in millions)	Term Loans and Leases by Origination Year							Revolving and Other Loans
	2024		2023	2022	2021	2020	Prior		Total
Commercial and industrial loans:
Pass	$	2,966	1,346	2,445	1,321	371	437	40,185	49,071
Special mention	15		13	22	1	3	9	1,055	1,118
Substandard	67		95	182	74	32	15	1,545	2,010
Doubtful	—		—	2	—	—	—	70	72
Total commercial and industrial loans	$	3,048	1,454	2,651	1,396	406	461	42,855	52,271
Commercial mortgage owner-occupied loans:
Pass	$	786	790	844	630	315	307	1,829	5,501
Special mention	8		9	23	7	—	3	31	81
Substandard	64		34	24	28	9	43	239	441
Doubtful	—		—	—	—	—	—	—	—
Total commercial mortgage owner-occupied loans	$	858	833	891	665	324	353	2,099	6,023
Commercial mortgage nonowner-occupied loans:
Pass	$	710	751	769	170	263	408	2,698	5,769
Special mention	54		—	50	5	—	—	150	259
Substandard	38		27	9	—	—	2	119	195
Doubtful	—		—	—	—	—	—	—	—
Total commercial mortgage nonowner-occupied loans	$	802	778	828	175	263	410	2,967	6,223
Commercial construction loans:
Pass	$	4	21	—	29	—	—	4,565	4,619
Special mention	—		—	—	—	—	—	756	756
Substandard	—		—	—	—	—	—	213	213
Doubtful	—		—	—	—	—	—	—	—
Total commercial construction loans	$	4	21	—	29	—	—	5,534	5,588
Commercial leases:
Pass	$	1,532	335	281	311	137	517	—	3,113
Special mention	4		4	2	3	2	4	—	19
Substandard	—		11	12	4	3	26	—	56
Doubtful	—		—	—	—	—	—	—	—
Total commercial leases	$	1,536	350	295	318	142	547	—	3,188
Total commercial loans and leases:
Pass	$	5,998	3,243	4,339	2,461	1,086	1,669	49,277	68,073
Special mention	81		26	97	16	5	16	1,992	2,233
Substandard	169		167	227	106	44	86	2,116	2,915
Doubtful	—		—	2	—	—	—	70	72
Total commercial loans and leases	$	6,248	3,436	4,665	2,583	1,135	1,771	53,455	73,293

The following tables summarize the Bancorp’s gross charge-offs within the commercial portfolio segment, by class and vintage:

For the three months ended March 31, 2025 ($ in millions)	Term Loans and Leases by Origination Year							Revolving and Other Loans
	2025		2024	2023	2022	2021	Prior		Total
Commercial loans and leases:
Commercial and industrial loans	$	—	6	4	1	—	—	43	54
Commercial mortgage owner-occupied loans	—		—	—	—	—	11	—	11
Commercial leases	—		—	—	—	—	2	—	2
Total commercial loans and leases	$	—	6	4	1	—	13	43	67

For the three months ended March 31, 2024 ($ in millions)	Term Loans and Leases by Origination Year							Revolving and Other Loans
	2024		2023	2022	2021	2020	Prior		Total
Commercial loans and leases:
Commercial and industrial loans	$	—	1	2	—	—	—	37	40
Commercial mortgage owner-occupied loans	—		—	—	—	—	—	—	—
Commercial leases	—		—	—	—	—	—	—	—
Total commercial loans and leases	$	—	1	2	—	—	—	37	40

Age Analysis of Past Due Commercial Loans and Leases

The following tables summarize the Bancorp’s amortized cost basis in portfolio commercial loans and leases, by age and class:

	Current Loans and Leases(a)		Past Due			Total Loans and Leases	90 Days Past Due and Still Accruing
As of March 31, 2025 ($ in millions)			30-89 Days(a)	90 Days or More(a)	Total Past Due
Commercial loans and leases:
Commercial and industrial loans	$	53,377	147	176	323	53,700	2
Commercial mortgage owner-occupied loans	6,172		6	32	38	6,210	5
Commercial mortgage nonowner-occupied loans	6,137		3	7	10	6,147	1
Commercial construction loans	5,952		—	—	—	5,952	—
Commercial leases	3,082		45	1	46	3,128	—
Total portfolio commercial loans and leases	$	74,720	201	216	417	75,137	8

(a)Includes accrual and nonaccrual loans and leases.

	Current Loans and Leases(a)		Past Due			Total Loans and Leases	90 Days Past Due and Still Accruing
As of December 31, 2024 ($ in millions)			30-89 Days(a)	90 Days or More(a)	Total Past Due
Commercial loans and leases:
Commercial and industrial loans	$	52,098	90	83	173	52,271	5
Commercial mortgage owner-occupied loans	5,980		40	3	43	6,023	—
Commercial mortgage nonowner-occupied loans	6,215		6	2	8	6,223	—
Commercial construction loans	5,587		1	—	1	5,588	—
Commercial leases	3,167		18	3	21	3,188	1
Total portfolio commercial loans and leases	$	73,047	155	91	246	73,293	6

(a)Includes accrual and nonaccrual loans and leases.

Residential Mortgage and Consumer Portfolio Segments

For purposes of monitoring the credit quality and risk characteristics of its consumer portfolio segment, the Bancorp disaggregates the segment into the following classes: home equity, indirect secured consumer loans, credit card, solar energy installation loans and other consumer loans. The Bancorp’s residential mortgage portfolio segment is also a separate class.

The Bancorp considers repayment performance as the best indicator of credit quality for residential mortgage and consumer loans, which includes both the delinquency status and performing versus nonperforming status of the loans.

The following tables present the amortized cost basis of the Bancorp’s residential mortgage and consumer portfolio segments, by class and vintage, disaggregated by both delinquency and performing versus nonperforming status:

As of March 31, 2025 ($ in millions)	Term Loans by Origination Year							Revolving Loans	Revolving Loans Converted to Term Loans
	2025		2024	2023	2022	2021	Prior			Total
Residential mortgage loans:
Performing:
Current(a)	$	346	2,124	973	2,885	4,472	6,495	—	—	17,295
30-89 days past due	—		3	2	3	5	13	—	—	26
90 days or more past due	—		—	1	—	3	4	—	—	8
Nonperforming	—		—	4	12	15	112	—	—	143
Total residential mortgage loans(b)	$	346	2,127	980	2,900	4,495	6,624	—	—	17,472
Home equity:
Performing:
Current	$	40	160	63	32	2	87	3,714	71	4,169
30-89 days past due	—		—	—	—	—	1	23	3	27
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	—		—	—	—	—	7	59	3	69
Total home equity	$	40	160	63	32	2	95	3,796	77	4,265
Indirect secured consumer loans:
Performing:
Current	$	2,331	6,036	2,572	2,767	2,042	882	—	—	16,630
30-89 days past due	1		21	25	33	21	13	—	—	114
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	—		7	12	19	13	9	—	—	60
Total indirect secured consumer loans	$	2,332	6,064	2,609	2,819	2,076	904	—	—	16,804
Credit card:
Performing:
Current	$	—	—	—	—	—	—	1,595	—	1,595
30-89 days past due	—		—	—	—	—	—	17	—	17
90 days or more past due	—		—	—	—	—	—	17	—	17
Nonperforming	—		—	—	—	—	—	31	—	31
Total credit card	$	—	—	—	—	—	—	1,660	—	1,660
Solar energy installation loans:
Performing:
Current	$	192	849	2,047	1,088	2	32	—	—	4,210
30-89 days past due	—		3	13	6	—	—	—	—	22
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	—		1	17	11	—	1	—	—	30
Total solar energy installation loans	$	192	853	2,077	1,105	2	33	—	—	4,262
Other consumer loans:
Performing:
Current	$	56	170	319	471	197	283	926	31	2,453
30-89 days past due	—		1	4	7	3	3	3	—	21
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	—		—	2	3	—	1	1	1	8
Total other consumer loans	$	56	171	325	481	200	287	930	32	2,482
Total residential mortgage and consumer loans:
Performing:
Current	$	2,965	9,339	5,974	7,243	6,715	7,779	6,235	102	46,352
30-89 days past due	1		28	44	49	29	30	43	3	227
90 days or more past due	—		—	1	—	3	4	17	—	25
Nonperforming	—		8	35	45	28	130	91	4	341
Total residential mortgage and consumer loans(b)	$	2,966	9,375	6,054	7,337	6,775	7,943	6,386	109	46,945

(a)Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of March 31, 2025, $73 of these loans were 30-89 days past due and $167 were 90 days or more past due. The Bancorp recognized an immaterial amount of losses during the three months ended March 31, 2025 due to claim denials and curtailments associated with these insured or guaranteed loans.

(b)Excludes $109 of residential mortgage loans measured at fair value at March 31, 2025, including $1 of 30-89 days past due loans and $2 of nonperforming loans.

As of December 31, 2024 ($ in millions)	Term Loans by Origination Year							Revolving Loans	Revolving Loans Converted to Term Loans
	2024		2023	2022	2021	2020	Prior			Total
Residential mortgage loans:
Performing:
Current(a)	$	1,961	998	2,961	4,606	2,491	4,245	—	—	17,262
30-89 days past due	1		3	4	9	4	12	—	—	33
90 days or more past due	1		—	1	1	—	2	—	—	5
Nonperforming	—		2	9	13	8	103	—	—	135
Total residential mortgage loans(b)	$	1,963	1,003	2,975	4,629	2,503	4,362	—	—	17,435
Home equity:
Performing:
Current	$	168	67	34	2	4	86	3,660	72	4,093
30-89 days past due	—		—	—	—	—	1	23	1	25
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	—		—	1	—	—	7	56	6	70
Total home equity	$	168	67	35	2	4	94	3,739	79	4,188
Indirect secured consumer loans:
Performing:
Current	$	6,773	2,836	3,046	2,371	753	349	—	—	16,128
30-89 days past due	19		27	39	27	11	7	—	—	130
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	4		10	19	13	5	4	—	—	55
Total indirect secured consumer loans	$	6,796	2,873	3,104	2,411	769	360	—	—	16,313
Credit card:
Performing:
Current	$	—	—	—	—	—	—	1,664	—	1,664
30-89 days past due	—		—	—	—	—	—	18	—	18
90 days or more past due	—		—	—	—	—	—	20	—	20
Nonperforming	—		—	—	—	—	—	32	—	32
Total credit card	$	—	—	—	—	—	—	1,734	—	1,734
Solar energy installation loans:
Performing:
Current	$	894	2,095	1,094	2	—	33	—	—	4,118
30-89 days past due	2		11	7	—	—	—	—	—	20
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	1		34	28	—	—	1	—	—	64
Total solar energy installation loans	$	897	2,140	1,129	2	—	34	—	—	4,202
Other consumer loans:
Performing:
Current	$	201	351	507	219	171	142	860	34	2,485
30-89 days past due	1		5	10	3	1	2	1	1	24
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	—		2	4	1	—	1	—	1	9
Total other consumer loans	$	202	358	521	223	172	145	861	36	2,518
Total residential mortgage and consumer loans:
Performing:
Current	$	9,997	6,347	7,642	7,200	3,419	4,855	6,184	106	45,750
30-89 days past due	23		46	60	39	16	22	42	2	250
90 days or more past due	1		—	1	1	—	2	20	—	25
Nonperforming	5		48	61	27	13	116	88	7	365
Total residential mortgage and consumer loans(b)	$	10,026	6,441	7,764	7,267	3,448	4,995	6,334	115	46,390

(a)Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2024, $90 of these loans were 30-89 days past due and $162 were 90 days or more past due. The Bancorp recognized an immaterial amount of losses during the three months ended March 31, 2024 due to claim denials and curtailments associated with these insured or guaranteed loans.

(b)Excludes $108 of residential mortgage loans measured at fair value at December 31, 2024, including $1 of 30-89 days past due loans, $1 of 90 days or more past

due loans and $2 of nonperforming loans.

The following tables summarize the Bancorp’s gross charge-offs within the residential mortgage and consumer portfolio segments, by class and vintage:

For the three months ended March 31, 2025 ($ in millions)	Term Loans by Origination Year							Revolving Loans	Revolving Loans Converted to Term Loans
	2025		2024	2023	2022	2021	Prior			Total
Consumer loans:
Home equity	$	—	—	—	—	—	—	2	—	2
Indirect secured consumer loans	—		6	11	12	4	3	—	—	36
Credit card	—		—	—	—	—	—	22	—	22
Solar energy installation loans	—		3	11	7	—	—	—	—	21
Other consumer loans	—		1	4	7	2	3	8	—	25
Total residential mortgage and consumer loans	$	—	10	26	26	6	6	32	—	106

For the three months ended March 31, 2024 ($ in millions)	Term Loans by Origination Year							Revolving Loans	Revolving Loans Converted to Term Loans
	2024		2023	2022	2021	2020	Prior			Total
Consumer loans:
Home equity	$	—	—	—	—	—	—	2	—	2
Indirect secured consumer loans	—		8	13	7	3	4	—	—	35
Credit card	—		—	—	—	—	—	23	—	23
Solar energy installation loans	—		8	6	—	—	—	—	—	14
Other consumer loans	—		4	11	3	2	3	8	1	32
Total residential mortgage and consumer loans	$	—	20	30	10	5	7	33	1	106

Collateral-Dependent Loans and Leases

The Bancorp considers a loan or lease to be collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. When a loan or lease is collateral-dependent, its fair value is generally based on the fair value less cost to sell of the underlying collateral.

The following table presents the amortized cost basis of the Bancorp’s collateral-dependent loans and leases, by portfolio class, as of:

($ in millions)	March 31, 2025		December 31, 2024
Commercial loans and leases:
Commercial and industrial loans	$	493	325
Commercial mortgage owner-occupied loans	47		63
Commercial mortgage nonowner-occupied loans	7		4
Commercial construction loans	—		1
Commercial leases	16		2
Total commercial loans and leases	$	563	395
Residential mortgage loans	136		131
Consumer loans:
Home equity	66		66
Indirect secured consumer loans	35		30
Total consumer loans	$	101	96
Total portfolio loans and leases	$	800	622

Nonperforming Assets

Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain and certain other assets, including OREO and other repossessed property.

The following table presents the amortized cost basis of the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of:

	March 31, 2025				December 31, 2024
($ in millions)	With an ALLL		No Related ALLL	Total	With an ALLL	No Related ALLL	Total
Commercial loans and leases:
Commercial and industrial loans	$	439	98	537	265	109	374
Commercial mortgage owner-occupied loans	59		3	62	52	23	75
Commercial mortgage nonowner-occupied loans	4		4	8	—	4	4
Commercial construction loans	—		—	—	—	1	1
Commercial leases	1		15	16	2	—	2
Total nonaccrual portfolio commercial loans and leases	$	503	120	623	319	137	456
Residential mortgage loans	66		79	145	57	80	137
Consumer loans:
Home equity	20		49	69	21	49	70
Indirect secured consumer loans	51		9	60	48	7	55
Credit card	31		—	31	32	—	32
Solar energy installation loans	30		—	30	64	—	64
Other consumer loans	8		—	8	9	—	9
Total nonaccrual portfolio consumer loans	$	140	58	198	174	56	230
Total nonaccrual portfolio loans and leases(a)(b)	$	709	257	966	550	273	823
OREO and other repossessed property	—		30	30	—	30	30
Total nonperforming portfolio assets(a)(b)	$	709	287	996	550	303	853

(a)Excludes $21 and $7 of nonaccrual loans held for sale as of March 31, 2025 and December 31, 2024, respectively.

(b)Includes $19 and $18 of nonaccrual government-insured commercial loans whose repayments are insured by the SBA as of March 31, 2025 and December 31, 2024, respectively.

The Bancorp recognized an immaterial amount of interest income on nonaccrual loans and leases for both the three months ended March 31, 2025 and 2024.

The Bancorp’s amortized cost basis of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction was $110 million and $94 million as of March 31, 2025 and December 31, 2024, respectively.

Modifications to Borrowers Experiencing Financial Difficulty

In the course of servicing its loans, the Bancorp works with borrowers who are experiencing financial difficulty to identify solutions that are mutually beneficial to both parties with the objective of mitigating the risk of losses on the loan. These efforts often result in modifications to the payment terms of the loan. The types of modifications offered to borrowers vary by type of loan and may include term extensions, interest rate reductions, payment delays (other than those that are insignificant) or combinations thereof. The Bancorp typically does not provide principal forgiveness except in circumstances where the loan has already been fully or partially charged off.

The Bancorp applies its expected credit loss models consistently to both modified and non-modified loans when estimating the ALLL. For loans which are modified for borrowers experiencing financial difficulty, there is generally not a significant change to the ALLL upon modification because the Bancorp’s ALLL estimation methodologies already consider those borrowers’ financial difficulties and the resulting effects of potential modifications when estimating expected credit losses.

Portfolio loans with an amortized cost basis of $254 million and $207 million as of March 31, 2025 and 2024, respectively, were modified during the three months ended March 31, 2025 and 2024, respectively, for borrowers experiencing financial difficulty, as further discussed in the following sections. These modifications for the three months ended March 31, 2025 and 2024 represented 0.21% and 0.18%, respectively, of total portfolio loans and leases as of March 31, 2025 and 2024, respectively. These amounts excluded $19 million and $8 million for the three months ended March 31, 2025 and 2024, respectively, of consumer and residential mortgage loans which have been granted a concession under provisions of the Federal Bankruptcy Act and are monitored separately from loans modified under the Bancorp’s loan modification programs. As of March 31, 2025 and December 31, 2024, the Bancorp had commitments of $114 million and $88 million,

respectively, to lend additional funds to borrowers experiencing financial difficulty whose terms have been modified during the twelve months ended March 31, 2025 and December 31, 2024, respectively.

Commercial portfolio segment

Commercial loan modifications are individually negotiated and may vary depending on the borrower’s financial situation, but the Bancorp most commonly utilizes term extensions for periods of three to twelve months. In less common situations, and when specifically warranted by the borrower’s situation, the Bancorp may also consider offering commercial borrowers interest rate reductions or payment delays, which may be combined with a term extension.

The following tables present the amortized cost basis as of March 31, 2025 and 2024 of the Bancorp’s commercial portfolio loans that were modified for borrowers experiencing financial difficulty, by portfolio class and type of modification, for the three months ended:

March 31, 2025 ($ in millions)	Term Extension		Term Extension and Payment Delay	Payment Delay	Other	Total	% of Total Class
Commercial and industrial loans	$	50	6	65	—	121	0.23	%
Commercial mortgage owner-occupied loans	5		24	—	—	29	0.47
Commercial mortgage nonowner-occupied loans	24		—	—	—	24	0.39
Commercial construction loans	8		—	42	—	50	0.84
Total commercial portfolio loans	$	87	30	107	—	224	0.31	%

March 31, 2024 ($ in millions)	Term Extension		Term Extension and Payment Delay	Payment Delay	Other	Total	% of Total Class
Commercial and industrial loans	$	99	—	53	1	153	0.29	%
Commercial mortgage owner-occupied loans	12		—	—	—	12	0.22
Commercial mortgage nonowner-occupied loans	5		—	—	—	5	0.08
Commercial construction loans	—		—	—	—	—	—
Total commercial portfolio loans	$	116	—	53	1	170	0.24	%

Residential mortgage portfolio segment

The Bancorp has established residential mortgage loan modification programs which define the type of modifications available as well as the eligibility criteria for borrowers. The designs of the Bancorp’s modification programs for residential mortgage loans are similar to those utilized by the various GSEs. The most common modification program utilized for residential mortgage loans is a term extension for up to 480 months from the modification date, combined with a change in interest rate to a fixed rate (which may be an increase or decrease from the rate in the original loan). As part of these modifications, the Bancorp may capitalize delinquent amounts due at the time of the modification into the principal balance of the loan when determining its modified payment structure. For loans where the modification results in a new monthly payment amount, borrowers may be required to complete a trial period of three to four months before the loan is permanently modified. The Bancorp also offers payment delay modifications to qualified borrowers which allow either the delay of repayment for delinquent amounts due until maturity or capitalization of delinquent amounts due into the principal balance of the loan. The number of monthly payments delayed varies by borrower but is most commonly within a range of six to twelve months.

The following table presents the amortized cost basis as of March 31, 2025 and 2024 of the Bancorp’s residential mortgage portfolio loans that were modified for borrowers experiencing financial difficulty, by type of modification, during the three months ended:

	March 31, 2025				March 31, 2024
($ in millions)	Total		% of Total Class		Total		% of Total Class
Payment delay	$	—	—	%	$	2	0.01	%
Term extension and payment delay	16		0.09		22		0.13
Term extension, interest rate reduction and payment delay	2		0.01		2		0.01
Total residential mortgage portfolio loans	$	18	0.10	%	$	26	0.15	%

The Bancorp had $3 million and $1 million of in-process modifications to residential mortgage loans outstanding as of March 31, 2025 and 2024, respectively, which are excluded from the completed modification activity in the table above. These in-process modifications will be reported as completed modifications once the borrower satisfies the applicable contingencies in the modification agreement and the loan is contractually modified to make the modified terms permanent.

Consumer portfolio segment

The Bancorp’s modification programs for consumer loans vary based on type of loan. The most common modification program for home equity is a term extension for up to 360 months combined with a delay in repayment of delinquent amounts due until maturity, which is typically combined with an interest rate reduction. Modification programs for credit card typically involve an interest rate reduction and an increase to the minimum monthly payment in order to repay a larger portion of outstanding balances. Modifications for indirect secured consumer loans, solar energy installation loans and other consumer loans are less commonly utilized as part of the Bancorp’s loss mitigation activities and programs vary by specific product type.

The following tables present the amortized cost basis as of March 31, 2025 and 2024 of the Bancorp’s consumer portfolio loans that were modified for borrowers experiencing financial difficulty, by portfolio class and type of modification, during the three months ended:

March 31, 2025 ($ in millions)	Interest Rate Reduction		Payment Delay	Term Extension, Interest Rate Reduction and Payment Delay	Total	% of Total Class
Home equity	$	1	—	3	4	0.09	%
Credit card	6		—	—	6	0.36
Solar energy installation loans	—		1	—	1	0.02
Other consumer loans	—		1	—	1	0.04
Total consumer portfolio loans	$	7	2	3	12	0.04	%

March 31, 2024 ($ in millions)	Interest Rate Reduction		Payment Delay	Term Extension, Interest Rate Reduction and Payment Delay	Total	% of Total Class
Home equity	$	1	—	2	3	0.08	%
Credit card	7		—	—	7	0.40
Solar energy installation loans	—		—	—	—	—
Other consumer loans	—		1	—	1	0.04
Total consumer portfolio loans	$	8	1	2	11	0.04	%

Financial effects of loan modifications

The following table presents the financial effects of the Bancorp’s significant types of portfolio loan modifications to borrowers experiencing financial difficulty, by portfolio class for the three months ended March 31:

	Financial Effects	2025	2024
Commercial loans:
Commercial and industrial loans	Weighted-average length of term extensions	6 months	5 months
	Weighted-average length of payment delay	4 months	3 months
Commercial mortgage owner- occupied loans	Weighted-average length of term extensions	9 months	3 months
	Weighted-average length of payment delay	10 months	N/A
Commercial mortgage nonowner- occupied loans	Weighted-average length of term extensions	4 months	6 months
Commercial construction loans	Weighted-average length of term extensions	13 months	N/A
	Weighted-average length of payment delay	7 months	N/A
Residential mortgage loans	Weighted-average length of term extensions	10.1 years	10.9 years
	Approximate amount of payment delays as a percentage of the related loan balances	11%	12%
Consumer loans:
Home equity	Weighted-average length of term extensions	16.8 years	27.1 years
	Weighted-average interest rate reduction	From 8.3% to 6.9%	From 9.1% to 7.3%
	Approximate amount of payment delays as a percentage of the related loan balances	8%	4%
Credit card	Weighted-average interest rate reduction	From 23.0% to 4.3%	From 24.1% to 4.2%

Credit quality of modified loans

The Bancorp closely monitors the performance of loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following tables present the amortized cost basis as of March 31, 2025 and 2024 for the Bancorp’s portfolio loans that were modified during the twelve months ended March 31, 2025 and 2024, respectively, for borrowers experiencing financial difficulty, by age and portfolio class:

March 31, 2025 ($ in millions)			Past Due
	Current		30-89 Days	90 Days or More	Total
Commercial loans:
Commercial and industrial loans	$	213	6	33	252
Commercial mortgage owner-occupied loans	66		—	24	90
Commercial mortgage nonowner-occupied loans	72		—	—	72
Commercial construction loans	107		1	—	108
Residential mortgage loans	55		11	15	81
Consumer loans:
Home equity	13		1	1	15
Credit card(a)	15		3	2	20
Solar energy installation loans	1		—	—	1
Other consumer loans	3		—	—	3
Total portfolio loans	$	545	22	75	642

(a)Credit card loans continue to be reported as delinquent after modification as they are not returned to current status until the borrower demonstrates a willingness and ability to repay the loan according to its modified terms.

March 31, 2024 ($ in millions)			Past Due
	Current		30-89 Days	90 Days or More	Total
Commercial loans:
Commercial and industrial loans	$	207	11	56	274
Commercial mortgage owner-occupied loans	21		16	—	37
Commercial mortgage nonowner-occupied loans	50		3	—	53
Commercial construction loans	74		—	—	74
Residential mortgage loans	82		12	16	110
Consumer loans:
Home equity	13		1	1	15
Credit card(a)	17		4	3	24
Solar energy installation loans	1		—	—	1
Other consumer loans	4		—	—	4
Total portfolio loans	$	469	47	76	592

(a)Credit card loans continue to be reported as delinquent after modification as they are not returned to current status until the borrower demonstrates a willingness and ability to repay the loan according to its modified terms.

The Bancorp considers modifications to borrowers experiencing financial difficulty that subsequently become 90 days or more past due under the modified terms as subsequently defaulted. The following tables present the amortized cost basis as of March 31, 2025 and 2024 of the modifications for borrowers experiencing financial difficulty that subsequently defaulted during the three months ended March 31, 2025 and 2024, respectively, and were within twelve months of the modification date:

March 31, 2025 ($ in millions)	Term Extension		Interest Rate Reduction	Payment Delay	Term Extension and Interest Rate Reduction	Term Extension and Payment Delay	Term Extension, Interest Rate Reduction and Payment Delay	Total
Commercial loans:
Commercial and industrial loans	$	—	—	11	—	6	—	17
Commercial mortgage owner-occupied loans	—		—	—	—	24	—	24
Residential mortgage loans	—		—	—	—	7	2	9
Consumer loans:
Home equity	—		1	—	—	—	—	1
Credit card	—		3	—	—	—	—	3
Total portfolio loans	$	—	4	11	—	37	2	54

March 31, 2024 ($ in millions)	Term Extension		Interest Rate Reduction	Payment Delay	Term Extension and Interest Rate Reduction	Term Extension and Payment Delay	Term Extension, Interest Rate Reduction and Payment Delay	Total
Commercial loans:
Commercial and industrial loans	$	8	—	—	1	—	—	9
Commercial mortgage owner-occupied loans	—		—	—	—	—	—	—
Residential mortgage loans	—		—	1	—	8	—	9
Consumer loans:
Home equity	—		—	—	—	1	—	1
Credit card	—		4	—	—	—	—	4
Total portfolio loans	$	8	4	1	1	9	—	23