Credit Quality and the Allowance for Loan and Lease Losses

6 Months Ended

Jun. 30, 2025

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 June 30, 2025 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
Balance, beginning of period	$	1,241	139	1,004	2,384

Losses charged-off(a)	(90)		—	(104)	(194)
Recoveries of losses previously charged-off(a)	19		1	35	55
Provision for (benefit from) loan and lease losses	123		(6)	50	167
Balance, end of period	$	1,293	134	985	2,412

(a)The Bancorp recorded $5 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 June 30, 2024 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
Balance, beginning of period	$	1,141	140	1,037	2,318
Losses charged-off(a)	(83)		(1)	(98)	(182)
Recoveries of losses previously charged-off(a)	3		1	34	38
Provision for (benefit from) loan and lease losses	52		(4)	66	114
Balance, end of period	$	1,113	136	1,039	2,288

(a)The Bancorp recorded $7 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 six months ended June 30, 2025 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
Balance, beginning of period	$	1,154	146	1,052	2,352

Losses charged off(a)	(156)		(1)	(209)	(366)
Recoveries of losses previously charged off(a)	20		2	68	90
Provision for (benefit from) loan and lease losses	275		(13)	74	336
Balance, end of period	$	1,293	134	985	2,412

(a)The Bancorp recorded $10 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 six months ended June 30, 2024 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
Balance, beginning of period	$	1,130	145	1,047	2,322

Losses charged off(a)	(123)		(1)	(204)	(328)
Recoveries of losses previously charged off(a)	8		2	64	74
Provision for (benefit from) loan and lease losses	98		(10)	132	220
Balance, end of period	$	1,113	136	1,039	2,288

(a)The Bancorp recorded $15 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 June 30, 2025 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
ALLL:(a)
Individually evaluated	$	181	1	14	196
Collectively evaluated	1,112		133	971	2,216
Total ALLL	$	1,293	134	985	2,412
Portfolio loans and leases:(b)
Individually evaluated	$	452	141	108	701
Collectively evaluated	73,700		17,433	30,455	121,588
Total portfolio loans and leases	$	74,152	17,574	30,563	122,289

(a)Includes $1 related to commercial leveraged leases at June 30, 2025.

(b)Excludes $107 of residential mortgage loans measured at fair value and includes $242 of commercial leveraged leases, net of unearned income, at June 30, 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 June 30, 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	$	1,840	2,545	1,002	2,183	997	688	40,659		49,914
Special mention	—		70	15	18	15	3	1,021		1,142
Substandard	33		114	96	163	53	33	1,574		2,066
Doubtful	—		—	—	—	—	—	190		190
Total commercial and industrial loans	$	1,873	2,729	1,113	2,364	1,065	724	43,444		53,312
Commercial mortgage owner-occupied loans:
Pass	$	527	738	698	744	584	510	1,582		5,383
Special mention	—		13	19	18	9	3	44		106
Substandard	40		18	42	33	26	16	236		411
Doubtful	—		—	—	—	—	—	—		—
Total commercial mortgage owner-occupied loans	$	567	769	759	795	619	529	1,862		5,900
Commercial mortgage nonowner-occupied loans:
Pass	$	260	565	658	773	169	564	2,796		5,785
Special mention	—		5	—	—	—	—	89		94
Substandard	2		80	21	29	—	1	200		333
Doubtful	—		—	—	—	—	—	—		—
Total commercial mortgage nonowner-occupied loans	$	262	650	679	802	169	565	3,085		6,212
Commercial construction loans:
Pass	$	8	4	—	—	28	—	4,668		4,708
Special mention	—		—	—	—	—	—	594		594
Substandard	—		—	—	—	—	—	249		249
Doubtful	—		—	—	—	—	—	—		—
Total commercial construction loans	$	8	4	—	—	28	—	5,511		5,551
Commercial leases:
Pass	$	775	1,033	287	232	233	567	—		3,127
Special mention	—		9	4	—	—	—	—		13
Substandard	—		8	8	9	5	7	—		37
Doubtful	—		—	—	—	—	—	—		—
Total commercial leases	$	775	1,050	299	241	238	574	—		3,177
Total commercial loans and leases:
Pass	$	3,410	4,885	2,645	3,932	2,011	2,329	49,705		68,917
Special mention	—		97	38	36	24	6	1,748		1,949
Substandard	75		220	167	234	84	57	2,259		3,096
Doubtful	—		—	—	—	—	—	190		190
Total commercial loans and leases	$	3,485	5,202	2,850	4,202	2,119	2,392	53,902		74,152


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 six months ended June 30, 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	$	—	8	22	5	3	1	98		137
Commercial mortgage owner-occupied loans	—		—	—	—	3	11	1		15


Commercial leases	—		—	1	1	—	2	—		4
Total commercial loans and leases	$	—	8	23	6	6	14	99		156


For the six months ended June 30, 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	$	—	2	3	1	1	—	116		123
Commercial mortgage owner-occupied loans	—		—	—	—	—	—	—		—


Commercial leases	—		—	—	—	—	—	—		—
Total commercial loans and leases	$	—	2	3	1	1	—	116		123

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 June 30, 2025 ($ in millions)			30-89 Days(a)	90 Days or More(a)	Total Past Due
Commercial loans and leases:
Commercial and industrial loans	$	53,086	73	153	226	53,312	5
Commercial mortgage owner-occupied loans	5,883		6	11	17	5,900	—
Commercial mortgage nonowner-occupied loans	6,202		1	9	10	6,212	3
Commercial construction loans	5,550		1	—	1	5,551	—
Commercial leases	3,163		14	—	14	3,177	—
Total portfolio commercial loans and leases	$	73,884	95	173	268	74,152	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 June 30, 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)	$	910	2,109	957	2,807	4,349	6,264	—	—	17,396
30-89 days past due	—		2	2	4	8	14	—	—	30
90 days or more past due	—		—	—	2	2	3	—	—	7
Nonperforming	—		—	5	12	16	108	—	—	141
Total residential mortgage loans(b)	$	910	2,111	964	2,825	4,375	6,389	—	—	17,574
Home equity:
Performing:
Current	$	88	154	59	30	2	83	3,896	74	4,386
30-89 days past due	—		—	—	—	—	1	19	4	24
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	—		—	1	—	—	6	62	6	75
Total home equity	$	88	154	60	30	2	90	3,977	84	4,485
Indirect secured consumer loans:
Performing:
Current	$	4,732	5,428	2,322	2,488	1,736	696	—	—	17,402
30-89 days past due	8		24	24	35	20	13	—	—	124
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	1		8	14	20	14	8	—	—	65
Total indirect secured consumer loans	$	4,741	5,460	2,360	2,543	1,770	717	—	—	17,591
Credit card:
Performing:
Current	$	—	—	—	—	—	—	1,643	—	1,643
30-89 days past due	—		—	—	—	—	—	17	—	17
90 days or more past due	—		—	—	—	—	—	18	—	18
Nonperforming	—		—	—	—	—	—	29	—	29
Total credit card	$	—	—	—	—	—	—	1,707	—	1,707
Solar energy installation loans:
Performing:
Current	$	387	789	1,997	1,068	1	31	—	—	4,273
30-89 days past due	—		2	10	5	—	—	—	—	17
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	—		2	14	9	—	1	—	—	26
Total solar energy installation loans	$	387	793	2,021	1,082	1	32	—	—	4,316
Other consumer loans:
Performing:
Current	$	124	145	292	436	177	255	983	28	2,440
30-89 days past due	—		1	3	6	3	3	1	—	17
90 days or more past due	—		—	—	—	—	—	—	—	—
Nonperforming	—		—	2	3	—	1	—	1	7
Total other consumer loans	$	124	146	297	445	180	259	984	29	2,464
Total residential mortgage and consumer loans:
Performing:
Current	$	6,241	8,625	5,627	6,829	6,265	7,329	6,522	102	47,540
30-89 days past due	8		29	39	50	31	31	37	4	229
90 days or more past due	—		—	—	2	2	3	18	—	25
Nonperforming	1		10	36	44	30	124	91	7	343
Total residential mortgage and consumer loans(b)	$	6,250	8,664	5,702	6,925	6,328	7,487	6,668	113	48,137

(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 June 30, 2025, $74 of these loans were 30-89 days past due and $161 were 90 days or more past due. The Bancorp recognized an immaterial amount and $1 of losses during the three and six months ended June 30, 2025, respectively, due to claim denials and curtailments associated with these insured or guaranteed loans.

(b)Excludes $107 of residential mortgage loans measured at fair value at June 30, 2025, including $1 of 30-89 days past due loans, $1 of 90 days or more 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 and $1 of losses during the three and six months ended June 30, 2024, respectively, 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 six months ended June 30, 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	$	—	—	—	—	—	1	—	—	1
Consumer loans:
Home equity	—		—	—	—	—	—	3	—	3
Indirect secured consumer loans	—		13	20	22	8	6	—	—	69
Credit card	—		—	—	—	—	—	42	—	42
Solar energy installation loans	—		6	25	13	—	—	—	—	44
Other consumer loans	—		2	8	13	4	7	16	1	51
Total residential mortgage and consumer loans	$	—	21	53	48	12	14	61	1	210


For the six months ended June 30, 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	$	—	—	—	—	—	1	—	—	1
Consumer loans:
Home equity	—		—	—	—	—	—	3	—	3
Indirect secured consumer loans	—		16	26	13	5	6	—	—	66
Credit card	—		—	—	—	—	—	46	—	46
Solar energy installation loans	—		8	6	—	5	9	—	—	28
Other consumer loans	—		5	13	6	10	9	16	2	61
Total residential mortgage and consumer loans	$	—	29	45	19	20	25	65	2	205

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)	June 30, 2025		December 31, 2024
Commercial loans and leases:
Commercial and industrial loans	$	416	325
Commercial mortgage owner-occupied loans	28		63
Commercial mortgage nonowner-occupied loans	7		4
Commercial construction loans	—		1
Commercial leases	—		2
Total commercial loans and leases	$	451	395
Residential mortgage loans	141		131
Consumer loans:
Home equity	74		66
Indirect secured consumer loans	34		30

Total consumer loans	$	108	96
Total portfolio loans and leases	$	700	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:


	June 30, 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	$	425	35	460	265	109	374
Commercial mortgage owner-occupied loans	28		12	40	52	23	75
Commercial mortgage nonowner-occupied loans	4		4	8	—	4	4
Commercial construction loans	—		—	—	—	1	1
Commercial leases	—		—	—	2	—	2
Total nonaccrual portfolio commercial loans and leases	$	457	51	508	319	137	456
Residential mortgage loans	63		80	143	57	80	137
Consumer loans:
Home equity	24		51	75	21	49	70
Indirect secured consumer loans	57		8	65	48	7	55
Credit card	29		—	29	32	—	32
Solar energy installation loans	26		—	26	64	—	64
Other consumer loans	7		—	7	9	—	9
Total nonaccrual portfolio consumer loans	$	143	59	202	174	56	230
Total nonaccrual portfolio loans and leases(a)(b)	$	663	190	853	550	273	823
OREO and other repossessed property	—		33	33	—	30	30
Total nonperforming portfolio assets(a)(b)	$	663	223	886	550	303	853

(a)Excludes $27 and $7 of nonaccrual loans held for sale as of June 30, 2025 and December 31, 2024, respectively.

(b)Includes $16 and $18 of nonaccrual government-insured commercial loans whose repayments are insured by the SBA as of June 30, 2025 and December 31, 2024, respectively.

The Bancorp recognized an immaterial amount of interest income on nonaccrual loans and leases for both the three and six months ended June 30, 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 $102 million and $94 million as of June 30, 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 $377 million and $183 million as of June 30, 2025 and 2024, respectively, were modified during the three months ended June 30, 2025 and 2024, respectively, and $526 million and $300 million were modified during the six months ended June 30, 2025 and 2024, respectively, for borrowers experiencing financial difficulty, as further discussed in the following sections. These modifications for the three months ended June 30, 2025 and 2024 represented 0.31% and 0.16%, respectively, of total portfolio loans and leases as of June 30, 2025 and 2024, respectively and 0.43% and 0.26% for the six months ended June 30, 2025 and 2024, respectively. These amounts excluded $19 million and $21 million for the three months ended June 30, 2025 and 2024, respectively, and $31 million and $30 million for the six months ended June 30, 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 June 30, 2025 and December 31, 2024, the Bancorp had commitments of $89 million and $88 million, respectively, to lend additional funds to borrowers experiencing financial difficulty whose terms have been modified during the twelve months ended June 30, 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. 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 June 30, 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 June 30, 2025 ($ in millions)	Term Extension		Term Extension and Payment Delay	Payment Delay	Total	% of Total Class
Commercial and industrial loans	$	80	—	163	243	0.46
Commercial mortgage owner-occupied loans	48		—	1	49	0.83
Commercial mortgage nonowner-occupied loans	—		—	—	—	—
Commercial construction loans	41		—	—	41	0.74
Total commercial portfolio loans	$	169	—	164	333	0.47


For the three months ended June 30, 2024 ($ in millions)	Term Extension		Term Extension and Payment Delay	Payment Delay	Total	% of Total Class
Commercial and industrial loans	$	95	18	3	116	0.22
Commercial mortgage owner-occupied loans	23		—	1	24	0.44
Commercial mortgage nonowner-occupied loans	—		—	—	—	—
Commercial construction loans	4		—	—	4	0.07
Total commercial portfolio loans	$	122	18	4	144	0.20


For the six months ended June 30, 2025 ($ in millions)	Term Extension		Term Extension and Payment Delay	Payment Delay	Total	% of Total Class
Commercial and industrial loans	$	116	4	163	283	0.53
Commercial mortgage owner-occupied loans	53		23	1	77	1.31
Commercial mortgage nonowner-occupied loans	2		—	—	2	0.03
Commercial construction loans	50		—	43	93	1.68
Total commercial portfolio loans	$	221	27	207	455	0.64


For the six months ended June 30, 2024 ($ in millions)	Term Extension		Term Extension and Payment Delay	Payment Delay	Total	% of Total Class
Commercial and industrial loans	$	149	18	16	183	0.35
Commercial mortgage owner-occupied loans	33		—	1	34	0.63
Commercial mortgage nonowner-occupied loans	5		—	—	5	0.08
Commercial construction loans	4		—	—	4	0.07
Total commercial portfolio loans	$	191	18	17	226	0.31

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 Bancorp may offer 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 tables present the amortized cost basis as of June 30, 2025 and 2024 of the Bancorp’s residential mortgage portfolio loans that were modified for borrowers experiencing financial difficulty, by type of modification:


	June 30, 2025			June 30, 2024
For the three months ended ($ in millions)	Total		% of Total Class	Total		% of Total Class

Payment delay	$	—	—	$	3	0.02
Term extension and payment delay	22		0.12	24		0.14

Term extension, interest rate reduction and payment delay	12		0.07	2		0.01
Total residential mortgage portfolio loans	$	34	0.19	$	29	0.17


	June 30, 2025			June 30, 2024
For the six months ended ($ in millions)	Total		% of Total Class	Total		% of Total Class

Payment delay	$	—	—	$	5	0.03
Term extension and payment delay	38		0.21	45		0.26

Term extension, interest rate reduction and payment delay	13		0.07	3		0.02
Total residential mortgage portfolio loans	$	51	0.29	$	53	0.31

The Bancorp had $3 million of in-process modifications to residential mortgage loans outstanding as of both June 30, 2025 and 2024 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 June 30, 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:


For the three months ended June 30, 2025 ($ in millions)	Interest Rate Reduction		Payment Delay	Term Extension and Payment Delay	Term Extension, Interest Rate Reduction and Payment Delay	Total	% of Total Class
Home equity	$	—	—	—	3	3	0.07
Credit card	5		—	—	—	5	0.29
Solar energy installation loans	—		1	—	—	1	0.02
Other consumer loans	—		1	—	—	1	0.04
Total consumer portfolio loans	$	5	2	—	3	10	0.03


For the three months ended June 30, 2024 ($ in millions)	Interest Rate Reduction		Payment Delay	Term Extension and Payment Delay	Term Extension, Interest Rate Reduction and Payment Delay	Total	% of Total Class
Home equity	$	1	—	—	2	3	0.08
Credit card	6		—	—	—	6	0.35
Solar energy installation loans	—		—	—	—	—	—
Other consumer loans	—		1	—	—	1	0.04
Total consumer portfolio loans	$	7	1	—	2	10	0.04


For the six months ended June 30, 2025 ($ in millions)	Interest Rate Reduction		Payment Delay	Term Extension and Payment Delay	Term Extension, Interest Rate Reduction and Payment Delay	Total	% of Total Class
Home equity	$	1	—	1	5	7	0.16
Credit card	10		—	—	—	10	0.59
Solar energy installation loans	—		1	—	—	1	0.02
Other consumer loans	—		2	—	—	2	0.08
Total consumer portfolio loans	$	11	3	1	5	20	0.07


For the six months ended June 30, 2024 ($ in millions)	Interest Rate Reduction		Payment Delay	Term Extension and Payment Delay	Term Extension, Interest Rate Reduction and Payment Delay	Total	% of Total Class
Home equity	$	1	—	1	5	7	0.18
Credit card	12		—	—	—	12	0.69
Solar energy installation loans	—		—	—	—	—	—
Other consumer loans	—		2	—	—	2	0.08
Total consumer portfolio loans	$	13	2	1	5	21	0.08

Financial effects of loan modifications

The following tables present 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 June 30,
	Financial Effects	2025	2024
Commercial loans:
Commercial and industrial loans	Weighted-average length of term extensions	20 months	10 months
	Weighted-average length of payment delay	9 months	6 months
Commercial mortgage owner- occupied loans	Weighted-average length of term extensions	6 months	12 months
	Weighted-average length of payment delay	6 months	6 months


Commercial construction loans	Weighted-average length of term extensions	12 months	6 months

Residential mortgage loans	Weighted-average length of term extensions	8.6 years	9.1 years
	Weighted-average interest rate reduction	From 6.5% to 5.0%	From 7.9% to 7.2%
	Approximate amount of payment delays as a percentage of the related loan balances	9%	11%
Consumer loans:
Home equity	Weighted-average length of term extensions	21.6 years	24.0 years
	Weighted-average interest rate reduction	From 8.6% to 7.0%	From 8.8% to 7.1%
	Approximate amount of payment delays as a percentage of the related loan balances	4%	5%

Credit card	Weighted-average interest rate reduction	From 23.2% to 4.1%	From 23.7% to 3.7%


		For the six months ended June 30,
	Financial Effects	2025	2024
Commercial loans:
Commercial and industrial loans	Weighted-average length of term extensions	16 months	9 months
	Weighted-average length of payment delay	9 months	5 months
Commercial mortgage owner- occupied loans	Weighted-average length of term extensions	7 months	9 months
	Weighted-average length of payment delay	10 months	6 months
Commercial mortgage nonowner- occupied loans	Weighted-average length of term extensions	6 months	6 months
Commercial construction loans	Weighted-average length of term extensions	12 months	6 months
	Weighted-average length of payment delay	7 months	N/A
Residential mortgage loans	Weighted-average length of term extensions	9.2 years	10.2 years
	Weighted-average interest rate reduction	From 6.6% to 5.3%	From 7.8% to 7.2%
	Approximate amount of payment delays as a percentage of the related loan balances	10%	12%
Consumer loans:
Home equity	Weighted-average length of term extensions	19.1 years	24.9 years
	Weighted-average interest rate reduction	From 8.5% to 6.9%	From 8.9% to 7.2%
	Approximate amount of payment delays as a percentage of the related loan balances	6%	5%

Credit card	Weighted-average interest rate reduction	From 23.1% to 4.2%	From 23.9% to 3.9%

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 June 30, 2025 and 2024 for the Bancorp’s portfolio loans that were modified during the twelve months ended June 30, 2025 and 2024, respectively, for borrowers experiencing financial difficulty, by age and portfolio class:


June 30, 2025 ($ in millions)			Past Due
	Current		30-89 Days	90 Days or More	Total
Commercial loans:
Commercial and industrial loans	$	321	3	62	386
Commercial mortgage owner-occupied loans	100		—	23	123
Commercial mortgage nonowner-occupied loans	51		—	—	51
Commercial construction loans	118		—	—	118
Residential mortgage loans	63		15	9	87
Consumer loans:
Home equity	13		1	1	15

Credit card(a)	14		3	2	19
Solar energy installation loans	2		—	—	2
Other consumer loans	3		—	—	3
Total portfolio loans	$	685	22	97	804

(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.


June 30, 2024 ($ in millions)			Past Due
	Current		30-89 Days	90 Days or More	Total
Commercial loans:
Commercial and industrial loans	$	199	3	8	210
Commercial mortgage owner-occupied loans	34		—	—	34
Commercial mortgage nonowner-occupied loans	50		—	—	50
Commercial construction loans	23		—	—	23
Residential mortgage loans	74		15	11	100
Consumer loans:
Home equity	13		1	1	15

Credit card(a)	17		3	3	23
Solar energy installation loans	1		—	—	1
Other consumer loans	4		—	—	4
Total portfolio loans	$	415	22	23	460

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 June 30, 2025 and 2024 of the modifications for borrowers experiencing financial difficulty that subsequently defaulted during the three months ended June 30, 2025 and 2024, respectively, and were within twelve months of the modification date:


June 30, 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	$	1	—	43	—	—	—	44
Commercial mortgage owner-occupied loans	—		—	—	—	—	—	—


Residential mortgage loans	—		—	—	—	6	1	7
Consumer loans:
Home equity	—		—	—	—	—	1	1

Credit card	—		1	—	—	—	—	1


Total portfolio loans	$	1	1	43	—	6	2	53


June 30, 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	$	—	—	13	—	6	—	19
Commercial mortgage owner-occupied loans	—		—	—	—	—	—	—


Residential mortgage loans	—		—	—	—	7	—	7
Consumer loans:
Home equity	—		1	—	—	—	—	1

Credit card	—		4	—	—	—	—	4


Total portfolio loans	$	—	5	13	—	13	—	31

The following tables present the amortized cost basis as of June 30, 2025 and 2024 of the modifications for borrowers experiencing financial difficulty that subsequently defaulted during the six months ended June 30, 2025 and 2024, respectively, and were within twelve months of the modification date:


June 30, 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	$	1	—	52	—	3	—	56
Commercial mortgage owner-occupied loans	—		—	—	—	23	—	23


Residential mortgage loans	—		—	—	—	13	3	16
Consumer loans:
Home equity	—		—	—	—	—	1	1

Credit card	—		4	—	—	—	—	4


Total portfolio loans	$	1	4	52	—	39	4	100


June 30, 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	—	13	1	6	—	28
Commercial mortgage owner-occupied loans	—		—	—	—	—	—	—


Residential mortgage loans	—		—	1	—	16	—	17
Consumer loans:
Home equity	—		1	—	—	—	—	1

Credit card	—		6	—	—	—	—	6


Total portfolio loans	$	8	7	14	1	22	—	52