09:08 AM EDT, 09/10/2025 (MT Newswires) -- Fifth Third Bancorp ( FITB ) said Tuesday it recently discovered alleged external fraud at a commercial borrower of Fifth Third Bank related to an asset-backed finance loan with an outstanding balance of about $200 million.

The company currently estimates a $170 million to $200 million non-cash impairment charge associated with the loan, to be recognized in Q3, according to a regulatory filing.

Fifth Third said it is working with law enforcement in connection with the matter, as well as with third party advisors to validate the extent of its potential fraud-related losses to determine the actual impairment charge.

The company believes that the alleged fraud was a "one-off" issue in its warehouse-lending business that will lead to "a fair amount of litigation," Fifth Third Chief Executive Timothy Spence said Wednesday at a Barclays financial services conference, according to a Bloomberg report.

Fifth Third shares were 1.6% lower in premarket trading.