v3.26.1
Sales of Receivables and Servicing Rights
 6 Months Ended
Jun. 30, 2026
Transfers and Servicing [Abstract]  
Sales of Receivables and Servicing Rights Sales of Receivables and Servicing Rights
Residential Mortgage Loan Sales
The Bancorp sold residential mortgage loans during the three and six months ended June 30, 2026 and 2025. In those sales, the Bancorp obtained servicing responsibilities and provided certain standard representations and warranties; however, the investors have no recourse to the Bancorp’s other assets for failure of debtors to pay when due. The Bancorp receives servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates.

Information related to residential mortgage loan sales and the Bancorp’s residential mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows:
For the three months ended
June 30,		For the six months ended
June 30,
($ in millions)2026202520262025
Residential mortgage loan sales(a)
$1,632 1,171 2,913 2,174 
Origination fees and gains on residential mortgage loan sales21 19 44 34 
Gross residential mortgage servicing fees71 73 141 147 
(a)Represents the unpaid principal balance at the time of the sale.

Residential Mortgage Servicing Rights
The Bancorp measures all of its residential mortgage servicing rights at fair value with changes in fair value reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income. The following table presents changes in the residential mortgage servicing rights for the six months ended June 30:
($ in millions)20262025
Balance, beginning of period$1,598 1,704 
Servicing rights originated58 25 
Changes in fair value:
Due to changes in inputs or assumptions(a)
6 (25)
Other changes in fair value(b)
(80)(75)
Balance, end of period$1,582 1,629 
(a)Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates.
(b)Primarily reflects changes due to realized cash flows and the passage of time.

The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the value of the residential MSR portfolio which may include the use of investment securities or derivative instruments. Refer to Note 12 for additional information on derivative instruments used for this purpose.

The key economic assumptions used in measuring the servicing rights related to residential mortgage loans that continued to be held by the Bancorp at the date of sale, securitization or purchase resulting from transactions completed during the three months ended June 30, 2026 and 2025 were as follows:
June 30, 2026June 30, 2025
Weighted-
Average Life
(in years)		Prepayment
Speed
(annual)		OAS
(bps)		Weighted-
Average Life
(in years)		Prepayment
Speed
(annual)		OAS
(bps)
Fixed-rate residential mortgage loans8.39.0 %5496.012.1  %496

At June 30, 2026 and December 31, 2025, the Bancorp serviced $85.9 billion and $87.8 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. The weighted-average coupon of the residential mortgage portfolio was 3.91% and 3.86% at June 30, 2026 and December 31, 2025, respectively.
At June 30, 2026, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in OAS for servicing rights related to residential mortgage loans are as follows:
($ in millions)(a)
Prepayment Speed AssumptionOAS Assumption
Fair ValueWeighted-
Average Life
(in years)		Impact of Adverse Change
on Fair Value		OAS
(bps)		Impact of Adverse Change on Fair Value
Rate10%20%50%10%20%
Fixed-rate$1,579 7.76.8 %$(38)(73)(170)376$(27)(54)
Adjustable-rate3 4.121.1 — (1)(2)702— (1)
(a)The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial.

These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on these variations in the assumptions typically cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. The Bancorp believes that variations of these levels are reasonably possible; however, there is the potential that adverse changes in key assumptions could be even greater. Also, in the previous table, the effect of a variation in a particular assumption on the fair value of the interests that continue to be held by the Bancorp is calculated without changing any other assumption; in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which might magnify or counteract these sensitivities.

Commercial Mortgage Loan Sales and Servicing Rights
During both the three and six months ended June 30, 2026, the Bancorp sold $3 million of commercial mortgage loans with servicing retained and recognized $1 million of gross commercial mortgage servicing fee income, which is included in commercial banking revenue in the Condensed Consolidated Statements of Income. In addition to the servicing responsibilities obtained in those sales, the Bancorp also provided certain standard representations and warranties as well as a loss share guarantee equal to one-third of the balance of the servicing portfolio. The Bancorp receives servicing fees based on a percentage of the outstanding balance. The liability for the Bancorp’s loss share guarantee obligation is reported in other liabilities on the Condensed Consolidated Balance Sheets. Refer to Note 15 for further information on the loss share guarantee.

The Bancorp measures its commercial mortgage servicing rights using the amortization method. Under this method, the commercial mortgage servicing rights are carried at the lower of amortized cost or estimated fair value. The Bancorp's commercial mortgage servicing rights are amortized in proportion to, and over the estimated period that net servicing income is expected to be received based on projections of the amount and timing of estimated future net cash flows, which is reported as a component of commercial banking revenue in the Condensed Consolidated Statements of Income. At June 30, 2026, the carrying amount of commercial mortgage servicing rights was $25 million.