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Variable Interest Entities | 6 Months Ended
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Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Variable Interest Entities | Variable Interest Entities The Bancorp, in the normal course of business, engages in a variety of activities that involve VIEs, which are legal entities that lack sufficient equity at risk to finance their activities without additional subordinated financial support or the equity investors of the entities as a group lack any of the characteristics of a controlling interest. For more information regarding the Bancorp’s accounting for and investments in these VIEs, refer to Note 1 and Note 12 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025. Consolidated VIEs The Bancorp has consolidated VIEs related to an automobile loan securitization and a solar loan securitization where it has determined that it is the primary beneficiary. 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) | June 30, 2026 | December 31, 2025
Assets: |  |
Other short-term investments | $ | 33 |  | 38 |
Indirect secured consumer loans | 358 |  | 526 |
Solar energy installation loans | 26 |  | 28 |
ALLL | (7) |  | (9) |
Other assets | 2 |  | 3 |
Total assets | $ | 412 |  | 586 |
Liabilities: |  |
Other liabilities | $ | 10 |  | 11 |
Long-term debt | 312 |  | 473 |
Total liabilities | $ | 322 |  | 484 |
Non-consolidated VIEs 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:
June 30, 2026 ($ in millions) | Total Assets | Total Liabilities | Maximum Exposure
CDC investments | $ | 3,145 |  | 1,117 |  | 3,193 |
Private equity investments | 377 |  | — |  | 731 |
Loans provided to VIEs | 4,649 |  | — |  | 7,604 |
Lease pool entities | 15 |  | — |  | 15 |
Solar loan securitizations | 6 |  | — |  | 6 |
December 31, 2025 ($ in millions) | Total Assets | Total Liabilities | Maximum Exposure
CDC investments | $ | 2,293 |  | 714 |  | 2,345 |
Private equity investments | 330 |  | — |  | 640 |
Loans provided to VIEs | 4,340 |  | — |  | 7,738 |
Lease pool entities | 20 |  | — |  | 20 |
Solar loan securitizations | 7 |  | — |  | 7 |
CDC investments CDC invests in projects to create affordable housing and revitalize business and residential areas. CDC generally co-invests with other unrelated companies and/or individuals and typically makes investments in a separate legal entity that owns the property under development. The entities are usually formed as limited partnerships and LLCs and CDC typically invests as a limited partner/investor member in the form of equity contributions. The Bancorp utilizes the proportional amortization method to account for its qualifying investments in projects that are related to certain income tax credit programs. These tax credit programs include the LIHTC program established under Section 42 of the IRC, the New Markets Tax Credit program established under Section 45D of the IRC and the Rehabilitation Investment Tax Credit program established under Section 47 of the IRC. At June 30, 2026 and December 31, 2025, the Bancorp’s CDC investments included $2.9 billion and $2.1 billion, respectively, of tax credit program investments for which the Bancorp elected the proportional amortization method. The unfunded commitments related to these investments were $1.1 billion and $714 million at June 30, 2026 and December 31, 2025, respectively. The unfunded commitments as of June 30, 2026 are expected to be funded from 2026 to 2044. The following table summarizes the impacts to the Condensed Consolidated Statements of Income related to the Bancorp’s tax credit program investments:
| Condensed Consolidated Statements of Income Caption(a) | For the three months ended June 30, | For the six months ended June 30,
($ in millions) | 2026 | 2025 | 2026 | 2025
Proportional amortization | Applicable income tax expense | $ | 95 |  | 59 |  | 114 |  | 106 |
Tax credits and other benefits(b)(c) | Applicable income tax expense | (114) |  | (72) |  | (137) |  | (128) |
Changes in carrying amounts of equity method investments(c) | Other noninterest expense | 2 |  | 2 |  | 4 |  | 4 |
(a)The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during both the three and six months ended June 30, 2026 and 2025. (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)Includes amounts for 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. Private equity investments The Bancorp invests as a limited partner in private equity investment funds which provide the Bancorp an opportunity to obtain higher rates of return on invested capital, while also providing strategic opportunities in certain cases. As part of previous commitments, the Bancorp made capital contributions to private equity investments of $20 million and $14 million during the three months ended June 30, 2026 and 2025, respectively, and $33 million and $31 million during the six months ended June 30, 2026 and 2025, respectively. Loans provided to VIEs The Bancorp has provided funding to certain unconsolidated VIEs sponsored by third parties. These VIEs are generally established to finance certain consumer and business loans originated by third parties. The entities are primarily funded through the issuance of a loan from the Bancorp or a syndication through which the Bancorp is involved. The Bancorp’s outstanding loans to these VIEs are included in commercial loans in Note 6. The loans and unfunded commitments to these VIEs are included in the Bancorp’s overall analysis of the ALLL and reserve for unfunded commitments, respectively. The Bancorp does not provide any implicit or explicit liquidity guarantees or principal value guarantees to these VIEs.

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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent + Details
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