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Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following table provides a summary of assets and liabilities recorded on the Condensed Consolidated Balance Sheets for these consolidated VIEs as of:


($ in millions)	March 31, 2025		December 31, 2024
Assets:
Other short-term investments	$	47	51
Indirect secured consumer loans	843		967
Solar energy installation loans	31		33
ALLL	(16)		(19)
Other assets	6		5
Total assets	$	911	1,037
Liabilities:
Other liabilities	$	12	12
Long-term debt	774		889
Total liabilities	$	786	901

Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses

The following tables provide a summary of assets and liabilities carried on the Condensed Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of:


March 31, 2025 ($ in millions)	Total Assets		Total Liabilities	Maximum Exposure
CDC investments	$	2,183	720	2,230
Private equity investments	281		—	498
Loans provided to VIEs	4,588		—	7,482
Lease pool entities	28		—	28
Solar loan securitizations	8		—	8


December 31, 2024 ($ in millions)	Total Assets		Total Liabilities	Maximum Exposure
CDC investments	$	2,179	741	2,224
Private equity investments	268		—	487
Loans provided to VIEs	4,711		—	7,529
Lease pool entities	30		—	30
Solar loan securitizations	8		—	8

Schedule of Investments, Proportional Amortization Method

The following table summarizes the impacts to the Condensed Consolidated Statements of Income related to the Bancorp’s tax credit program investments:


	Condensed Consolidated Statements of Income Caption(a)	For the three months ended March 31,
($ in millions)		2025		2024
Proportional amortization	Applicable income tax expense	$	47	47
Tax credits and other benefits(b)	Applicable income tax expense	(56)		(58)
Changes in carrying amounts of equity method investments(c)	Other noninterest expense	2		2

(a)The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during both the three months ended March 31, 2025 and 2024.

(b)The related cash flows are classified as operating activities in the Condensed Consolidated Statements of Cash Flows primarily in net change in other assets.

(c)These amounts pertain to tax credit program investments which were accounted for under the equity method as they did not meet the qualification criteria for the proportional amortization method.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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