-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LdxhohWiUk3vTGz9E2+OBmai02aDeXttXHo3LywUfcuOmGY2P/dfiAxQy8bbUkEB METzncmk+sqMHB+33EkaqQ== 0000035527-95-000016.txt : 19951119 0000035527-95-000016.hdr.sgml : 19951119 ACCESSION NUMBER: 0000035527-95-000016 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIFTH THIRD BANCORP CENTRAL INDEX KEY: 0000035527 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 310854434 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-08076 FILM NUMBER: 95591323 BUSINESS ADDRESS: STREET 1: 38 FOUNTAIN SQ PLZ STREET 2: FIFTH THIRD CENTER CITY: CINCINNATI STATE: OH ZIP: 45263 BUSINESS PHONE: 5135795300 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended September 30, 1995 Commission File Number 0-8076 FIFTH THIRD BANCORP (Exact name of Registrant as specified in its charter) Ohio 31-0854434 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification Number) Fifth Third Center Cincinnati, Ohio 45263 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (513)579-5300 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES /X/ NO / / The number of shares outstanding of the Registrant's Common Stock, without par value, as of September 30, 1995 was 66,909,173 shares. FIFTH THIRD BANCORP INDEX Part I. Financial Information Item 1. Financial Statements Consolidated Balance Sheets - September 30, 1995 and 1994 and December 31, 1994 3 Consolidated Statements of Income - Three and Nine Months Ended September 30, 1995 and 1994 5 Consolidated Statements of Cash Flows - Nine Months Ended September 30, 1995 and 1994 7 Consolidated Statements of Changes in Stockholders' Equity - Nine Months Ended September 30, 1995 and 1994 9 Notes to Consolidated Financial Statements 10 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 11 Part II. Other Information Item 6. Exhibits 14 Fifth Third Bancorp and Subsidiaries Sept. 30, Dec. 31, Sept. 30, Consolidated Balance Sheets 1995 1994 1994 ($000's) (unaudited) (unaudited) ASSETS ----------- ----------- ----------- Cash and Due from Banks $ 561,545 695,009 587,931 Securities Available for Sale (a) 2,069,427 1,129,492 1,091,937 Securities Held to Maturity (b) 2,561,074 2,507,543 2,253,727 Other Short-Term Investments 7,540 23,765 31,053 Loans and Leases Commercial Loans 3,565,736 3,045,315 3,033,639 Construction Loans 300,251 286,088 290,218 Commercial Mortgage Loans 783,633 729,532 738,273 Commercial Lease Financing 706,533 569,539 471,735 Residential Mortgage Loans 2,291,925 2,346,931 2,259,846 Consumer Loans 2,882,738 2,407,261 2,370,818 Consumer Lease Financing 1,346,874 1,133,953 1,015,700 Unearned Income (285,336) (232,162) (198,954) Reserve for Credit Losses (173,461) (155,918) (159,244) ----------- ----------- ----------- Total Loans and Leases 11,418,893 10,130,539 9,822,031 Bank Premises and Equipment 188,028 176,897 174,602 Accrued Income Receivable 142,204 114,039 99,513 Other Assets 204,158 179,725 209,759 ----------- ----------- ----------- Total Assets $ 17,152,869 14,957,009 14,270,553 =========== =========== =========== LIABILITIES Deposits Demand $ 1,681,755 1,679,625 1,555,687 Interest Checking 1,449,289 1,486,780 1,429,208 Savings 707,583 637,609 662,401 Money Market 1,895,524 1,688,147 1,663,990 Other Time 4,654,969 3,863,103 4,056,431 Certificates - $100,000 and Over 861,813 262,402 284,746 Foreign Office 470,919 1,013,212 974,092 ----------- ----------- ----------- Total Deposits 11,721,852 10,630,878 10,626,555 Federal Funds Borrowed 991,916 716,312 339,232 Short-Term Bank Notes 875,000 844,995 740,000 Other Short-Term Borrowings 1,058,000 890,911 706,222 Accrued Taxes, Interest and Expenses 328,514 194,753 206,698 Other Liabilities 101,595 101,673 107,740 Long-Term Debt 286,908 35,409 40,408 Convertible Subordinated Notes 143,706 143,304 143,167 ----------- ----------- ----------- Total Liabilities 15,507,491 13,558,235 12,910,022 ----------- ----------- ----------- STOCKHOLDERS' EQUITY Common Stock (c) 148,538 143,655 143,338 Capital Surplus 336,413 272,999 269,099 Retained Earnings 1,171,094 1,030,338 985,746 Unrealized Losses (10,667) (48,218) (37,652) ----------- ----------- ----------- Total Stockholders' Equity 1,645,378 1,398,774 1,360,531 Total Liabilities and ----------- ----------- ----------- Stockholders' Equity $ 17,152,869 14,957,009 14,270,553 =========== =========== =========== See Notes to Consolidated Financial Statements 3 Fifth Third Bancorp and Subsidiaries Consolidated Balance Sheets (continued) (a) Amortized cost: Sept. 30, 1995 - $2,086,838,000, Dec. 31, 1994 - $1,203,677,000 and Sept. 30, 1994 - $1,149,863,000. (b) Market value: Sept. 30, 1995 - $2,575,318,000, Dec. 31, 1994 - $2,410,536,000 and Sept. 30, 1994 - $2,186,688,000. (c) Stated value $2.22 per share; authorized 140,000,000; outstanding Sept. 30, 1995 - 66,909,173, Dec. 31, 1994 - 64,709,304 and Sept. 30, 1994 - 64,566,812. See Notes to Consolidated Financial Statements. 4 Fifth Third Bancorp and Subsidiaries Three Months Ended Consolidated Statements of Income (unaudited) September 30, ($000's) ----------------------- 1995 1994 ----------- ----------- Interest and Fees on Loans and Leases $228,046 188,973 Interest on Securities Taxable 68,411 43,747 Exempt from Income Taxes 5,941 4,050 ----------- ----------- Total Interest on Securities 74,352 47,797 Interest on Other Short-Term Investments 343 141 ----------- ----------- Total Interest Income 302,741 236,911 INTEREST EXPENSE ----------- ----------- Interest on Deposits Interest Checking 7,096 6,427 Savings 3,632 3,677 Money Market 15,971 10,444 Other Time 66,200 50,935 Certificates - $100,000 and Over 13,830 2,956 Foreign Office 7,577 7,094 ----------- ----------- Total Interest on Deposits 114,306 81,533 Interest on Federal Funds Borrowed 14,618 6,755 Interest on Short-Term Bank Notes 14,536 8,017 Interest on Other Short-Term Borrowings 10,971 6,047 Interest on Long-Term Debt and Notes 5,461 3,387 ----------- ----------- Total Interest Expense 159,892 105,739 ----------- ----------- NET INTEREST INCOME 142,849 131,172 Provision for Credit Losses 10,698 7,263 NET INTEREST INCOME AFTER ----------- ----------- PROVISION FOR CREDIT LOSSES 132,151 123,909 OTHER OPERATING INCOME Trust Income 15,619 13,848 Service Charges on Deposits 17,488 16,228 Data Processing Income 19,714 16,544 Other Service Charges and Fees 23,416 16,912 Securities Gains 4,081 -- ----------- ----------- Total Other Operating Income 80,318 63,532 OPERATING EXPENSES Salaries and Wages 39,156 37,615 Employee Benefits 10,440 9,743 Equipment Expenses 4,051 3,965 Net Occupancy Expenses 7,060 6,699 Other Operating Expenses 38,881 36,998 ----------- ----------- Total Operating Expenses 99,588 95,020 ----------- ----------- INCOME BEFORE INCOME TAXES 112,881 92,421 Applicable Income Taxes 37,692 29,577 ----------- ----------- NET INCOME 75,189 62,844 =========== =========== NET INCOME PER SHARE $ 1.13 .98 AVERAGE SHARES OUTSTANDING (000's) 66,453 64,523 CASH DIVIDENDS DECLARED PER SHARE $ .35 .31 See Notes to Consolidated Financial Statements. 5 Fifth Third Bancorp and Subsidiaries Nine Months Ended Consolidated Statements of Income (unaudited) September 30, ($000's) ----------------------- 1995 1994 ----------- ----------- Interest and Fees on Loans and Leases $657,972 540,394 Interest on Securities Taxable 183,663 121,502 Exempt from Income Taxes 17,227 11,292 ----------- ----------- Total Interest on Securities 200,890 132,794 Interest on Other Short-Term Investments 987 374 ----------- ----------- Total Interest Income 859,849 673,562 INTEREST EXPENSE ----------- ----------- Interest on Deposits Interest Checking 20,934 18,664 Savings 10,136 11,093 Money Market 44,709 28,021 Other Time 180,769 141,590 Certificates - $100,000 and Over 29,493 9,626 Foreign Office 40,414 12,781 ----------- ----------- Total Interest on Deposits 326,455 221,775 Interest on Federal Funds Borrowed 40,121 24,977 Interest on Short-Term Bank Notes 41,887 12,344 Interest on Other Short-Term Borrowings 29,655 17,494 Interest on Long-Term Debt and Notes 9,487 10,655 ----------- ----------- Total Interest Expense 447,605 287,245 ----------- ----------- NET INTEREST INCOME 412,244 386,317 Provision for Credit Losses 28,479 26,401 NET INTEREST INCOME AFTER ----------- ----------- PROVISION FOR CREDIT LOSSES 383,765 359,916 OTHER OPERATING INCOME Trust Income 45,649 41,777 Service Charges on Deposits 48,748 44,928 Data Processing Income 54,502 46,325 Other Service Charges and Fees 70,160 56,689 Securities Gains 4,110 303 ----------- ----------- Total Other Operating Income 223,169 190,022 OPERATING EXPENSES Salaries and Wages 113,666 108,069 Employee Benefits 30,847 28,149 Equipment Expenses 12,277 12,129 Net Occupancy Expenses 20,878 19,822 Other Operating Expenses 114,262 112,938 ----------- ----------- Total Operating Expenses 291,930 281,107 ----------- ----------- INCOME BEFORE INCOME TAXES 315,004 268,831 Applicable Income Taxes 105,183 89,025 ----------- ----------- NET INCOME 209,821 179,806 =========== =========== NET INCOME PER SHARE $ 3.20 2.80 AVERAGE SHARES OUTSTANDING (000's) 65,582 64,310 CASH DIVIDENDS DECLARED PER SHARE $ 1.05 .89 See Notes to Consolidated Financial Statements. 6 Fifth Third Bancorp and Subsidiaries Consolidated Statements of Cash Flows (unaudited) For the Nine Months Ended September 30, ($000's) 1995 1994 - --------------------------------------------------------------------------- Operating Activities - --------------------------------------------------------------------------- Net Income $209,821 179,806 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Provision for Credit Losses 28,479 26,401 Depreciation, Amortization and Accretion 19,391 23,574 Provision for Deferred Income Taxes 17,358 27,407 Realized Securities Gains (4,119) (555) Realized Securities Losses 9 252 Proceeds from Sales of Residential Mortgage Loans Held for Sale 203,272 582,311 Net Gains from Sales of Residential Mortgage Loans Held for Sale (3,025) (9,723) Net Increase in Residential Mortgage Loans Held for Sale (275,132) (494,797) Net Decrease (Increase) in Accrued Income Receivable (24,633) 765 Net Decrease (Increase) in Other Assets 15,970 (34,328) Net Increase in Accrued Taxes, Interest and Expenses 94,146 14,186 Net Increase (Decrease) in Other Liabilities (9,946) 19,432 - --------------------------------------------------------------------------- Net Cash Provided by Operating Activities 271,591 334,731 - --------------------------------------------------------------------------- Investing Activities Proceeds from Sales of Securities Available for Sale 113,539 125,842 Proceeds from Calls, Paydowns and Maturities of Securities Available for Sale 152,470 244,011 Purchases of Securities Available for Sale (460,025) (555,954) Proceeds from Sales of Securities Held to Maturity -- 62,487 Proceeds from Calls, Paydowns and Maturities of Securities Held to Maturity 415,922 430,331 Purchases of Securities Held to Maturity (445,958) (671,969) Net Decrease (Increase) in Other Short-Term Investments 37,948 (19,916) Net Increase in Loans and Leases (1,335,794) (813,412) Purchases of Bank Premises and Equipment (19,680) (20,251) Proceeds from Disposal of Bank Premises and Equipment 2,148 836 Net Cash Acquired in Purchase of Subsidiaries (30,313) (10,012) - --------------------------------------------------------------------------- Net Cash Used in Investing Activities (1,569,743)(1,228,007) - --------------------------------------------------------------------------- 7 Fifth Third Bancorp and Subsidiaries Consolidated Statements of Cash Flows (unaudited) For the Nine Months Ended September 30, ($000's) (continued) 1995 1994 - --------------------------------------------------------------------------- Financing Activities Net Increase in Deposits 216,071 774,781 Purchase of Deposits 271,435 294,126 Net Increase (Decrease) in Federal Funds Borrowed 313,309 (692,332) Net Increase in Short-Term Bank Notes 30,005 740,000 Net Increase in Other Short-Term Borrowings 146,105 44,748 Issuance of Long-Term Debt 266,556 -- Repayment of Long-Term Debt Assumed in Acquisition -- (2,402) Repayment of Long-Term Debt (15,115) (225,110) Payment of Cash Dividends (65,713) (52,346) Exercise of Stock Options 2,170 4,804 Other (135) 46 - --------------------------------------------------------------------------- Net Cash Provided by Financing Activities 1,164,688 886,315 - --------------------------------------------------------------------------- Decrease in Cash and Due from Banks (133,464) (6,961) Cash and Due from Banks at Beginning of Period 695,009 594,892 - --------------------------------------------------------------------------- Cash and Due from Banks at End of Period $561,545 587,931 =========================================================================== See Notes to Consolidated Financial Statements 8 Fifth Third Bancorp and Subsidiaries Consolidated Statements of Changes In Stockholders' Equity (unaudited) For the Nine Months Ended September 30 ($000's) 1995 1994 ----------- ----------- Balance at January 1 $ 1,398,774 1,277,660 Net Income 209,821 179,806 Cash Dividends Declared: Fifth Third Bancorp (1995 - $1.05 Per Share and 1994 - $.89 Per Share) (69,071) (55,783) Pooled Acquisition -- (1,063) Stock Options Exercised, Including Treasury Shares Issued 2,170 6,696 Shares Acquired for Treasury (70) (31) Stock Issued in Acquisitions 66,203 3,323 Change in Unrealized Gains/Losses on Securities Available for Sale 37,551 (50,077) ----------- ----------- Balance at September 30 $ 1,645,378 1,360,531 =========== =========== See Notes to Consolidated Financial Statements 9 FINANCIAL INFORMATION ITEM 1. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Financial information as of December 31, 1994 has been derived from the audited consolidated financial statements of the Registrant. 2. In the opinion of management, the unaudited consolidated financial statements include all adjustments (which consist of only normal, recurring accruals) necessary to present fairly the consolidated financial position as of September 30, 1995 and 1994, and the results of operations for the three and nine months ended September 30, 1995 and 1994 and cash flows for the nine months ended September 30, 1995 and 1994. 3. The results of operations and cash flows for the nine months ended September 30, 1995 and 1994 are not necessarily indicative of the results to be expected for the full year. 4. The Registrant adopted Statement of Financial Accounting Standards (SFAS) No. 114, "Accounting by Creditors for Impairment of a Loan," as amended by SFAS No. 118, "Accounting by Creditors for Impairment of a Loan--Income Recognition and Disclosures," effective January 1, 1995. These statements require that impaired loans be measured based on the present value of expected future cash flows discounted at the loans' effective interest rates or the fair value of the underlying collateral, and specify alternative methods for recognizing interest income on loans that are impaired or for which there are credit concerns. The adoption of SFAS No. 114 and No. 118 did not have any effect on the total reserve for credit losses or related provision. 5. The Registrant adopted SFAS No. 122, "Accounting for Mortgage Servicing Rights," during the third quarter of 1995. This statement requires an entity that sells or securitizes mortgage loans with servicing rights retained to allocate the total cost of the mortgage loans to the mortgage servicing rights and the loans based on their relative fair values. Resulting capitalized mortgage servicing rights must be assessed for impairment periodically based on fair value, with any impairment recognized through a valuation allowance. The effect of adoption of SFAS No. 122 was to increase gains on sales of mortgage loans by $2.5 million (pre-tax) during the third quarter of 1995. 6. Residential mortgage loans held for sale, which are valued at the lower of aggregate cost or market value, were $24,659,000, $4,168,000 and $28,864,000 at September 30, 1995, December 31, 1994 and September 30, 1994, respectively. 10 ITEM 1. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 7. In the first nine months of 1995, the Registrant paid $411,120,000 in interest and $52,000,000 in Federal income taxes. In the first nine months of 1994, the Registrant paid $268,899,000 in interest and $60,500,000 in Federal income taxes. In the first nine months of 1995 and 1994, respectively, the Registrant had noncash investing activities consisting of the securitization of $553,149,000 and $351,799,000 of residential mortgage loans. 8. On January 20, 1995, the Registrant acquired Mutual Federal Savings Bank of Miamisburg (Ohio), A Stock Savings Bank, with $78 million in assets. On July 21, 1995, the Registrant acquired Falls Financial, Inc., with assets of $573 million. On September 8, 1995, the Registrant acquired the $49 million Bank of Naples. Each of these transactions were stock-for-stock exchanges accounted for as poolings of interests. The Consolidated Financial Statements for prior periods have not been restated due to immateriality. 9. On June 23, 1995, the Registrant purchased the deposits and fixed assets of the Banc One branch in Lebanon, Ohio. On September 22, 1995, the Registrant purchased loans, deposits and the fixed assets of the seven branches of the Dayton, Ohio division of PNC Bank. 10. In September, 1995, the Registrant reached a definitive agreement to acquire $1.4 billion in deposits and 28 Cleveland-area offices from First Nationwide Bank. This acquisition is expected to close in the first quarter of 1996, pending regulatory and shareholder approvals. 11. Certain prior year's data has been reclassified to conform to current presentation. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following is management's discussion and analysis of certain significant factors which have affected the Registrant's financial condition and results of operations during the periods included in the consolidated financial statements which are a part of this filing. RESULTS OF OPERATIONS The Registrant's net income was $75,189,000 for the third quarter of 1995, compared to $62,844,000 for the same period in 1994. Third quarter earnings per share were $1.13, a 15.3% increase over last year's $.98. Total assets were $17.2 billion at quarter end, compared to 1994's third quarter-end assets of $14.3 billion. For the third quarter of 1995, return on average equity was 18.4% and return on average assets was 1.80%. 11 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued) The Registrant's net interest income on a fully taxable equivalent basis for the third quarter of 1995 was $151.2 million, a 9.7% increase over the $137.7 million realized in the same period of 1994. This increase resulted from an 18.6% increase in average interest-earning assets, offset by a decrease of 31 basis points in the net interest margin. Total loans and leases increased 16.1% over last year. Commercial loans and leases were up 17.4%, led by commercial leases, up 49% and commercial loans, up 17.3%. Retail loans and leases were up 15.2% since September 30, 1994, led by consumer leases, up 32.2%, and installment loans, up 21.7%. Since September 30, 1994, the Bancorp has sold or securitized approximately $776 million in residential mortgage loans to improve liquidity and limit interest rate risk. Originations during that same period exceeded $802 million. The provision for credit losses was $10.7 million in the third quarter of 1995 and $7.3 million in the third quarter of 1994. The reserve for credit losses as a percentage of loans and leases outstanding was 1.50% at September 30, 1995 and 1.60% at September 30, 1994. Nonperforming assets as a percentage of total loans, leases and other real estate owned were .24% at September 30, 1995 and .31% at September 30, 1994. Total other operating income, excluding securities gains, increased to $76.2 million for the third quarter of 1995, a 20.0% increase over the third quarter of 1994. This growth was led by a 38.5% increase in other service charges and fees. Other service charges and fees for the quarter included a gain of approximately $2.5 million from the adoption of SFAS No. 122 and a gain of approximately $1 million on the sale of other real estate owned. Data processing and trust income increased 19.2% and 12.8%, respectively, over the same period in 1994. Total operating expenses increased 4.8% during the third quarter over the similar period of 1994. Salaries, wages and employee benefits increased 4.7% over 1994. The number of full-time equivalent employees increased 4.4% (or 252) over the same period in 1994 to 5,920 at September 30, 1995. Nearly all of the increase in full-time equivalent employees is due to acquisitions. Equipment and net occupancy expenses increased 4.2% over 1994 and other operating expenses increased 5.1% over 1994. The overhead ratios (operating expenses divided by the sum of fully taxable equivalent net interest income and other operating income) were 43.0% and 47.2% for the third quarters of 1995 and 1994, respectively. The FDIC lowered the federal deposit insurance premium on most of the Registrant's deposits from 23 cents to 4 cents per $100 of deposits in September of 1995. However, Congress is currently considering a special, one-time assessment on thrifts that could also apply to the deposits that the Registrant has acquired from thrifts over the years. If enacted in its present form, the assessment could result in a one-time, pre-tax charge of up to $21 million in the fourth quarter of 1995, which could be offset by lower ongoing insurance costs in the future. 12 MATERIAL CHANGES IN FINANCIAL CONDITION The material changes that have occurred in the Registrant's financial condition during 1995 are as follows ($000's): Sept. 30, Dec. 31, 1995 1994 $ +/- % +/- --------------------------------------- Securities Available for Sale $ 2,069,427 1,129,492 939,935 83.2 Loans and Leases 11,592,354 10,286,457 1,305,897 12.7 Deposits 11,721,852 10,630,878 1,090,974 10.3 Long-Term Debt 286,908 35,409 251,499 710.3 The growth in securities available for sale was due primarily to the securitization and transfer of $553 million in residential mortgage loans. Loan and lease origination volume was strong, funded primarily through core deposits, with approximately $875 million in deposits acquired during 1995. Additional loan growth was funded through short- term and long-term borrowings. During the third quarter of 1995, the Registrant issued $250 million in 6.75% subordinated debt through its lead bank in Cincinnati. This debt matures in 2005 and qualifies as total risk-based capital for regulatory purposes. LIQUIDITY AND CAPITAL RESOURCES The maintenance of an adequate level of liquidity is necessary to ensure that sufficient funds are available to meet customers' loan demand and deposit withdrawals. The banking subsidiaries' liquidity sources consist of short-term marketable securities, maturing loans and federal funds loaned and selected securitizable loan assets. Liquidity has also been obtained through liabilities such as customer-related core deposits, funds borrowed, certificates of deposit and public funds deposits. At September 30, 1995, stockholders' equity was $1.645 billion, compared to $1.360 billion at September 30, 1994, an increase of $.285 billion, or 20.9%. Stockholders' equity as a percentage of total assets as of September 30, 1995 was 9.6%. The Federal Reserve Board has adopted risk-based capital guidelines which assign risk weightings to assets and off-balance sheet items and also define and set minimum capital requirements (risk-based capital ratios). The guidelines also define "well capitalized" ratios of Tier 1, total capital and leverage as 6%, 10% and 5%, respectively. At September 30, 1995, the Registrant had a Tier 1 risk-based capital ratio of 11.0%, a total risk-based capital ratio of 14.3% and a leverage ratio of 9.5%. At September 30, 1994, the Registrant had a Tier 1 risk-based capital ratio of 11.6%, total risk- based capital ratio of 13.6% and a leverage ratio of 9.5%. The Registrant, as well as each of it's bank subsidiaries, had Tier 1, total capital and leverage ratios above the well capitalized levels at September 30, 1995. 13 ITEM 6. EXHIBITS 1. Exhibit No. 11 - Computation of Consolidated Net Income Per Share for the Three and Nine Months Ended September 30, 1995 and 1994. 2. Exhibit No. 27 - Financial Data Schedule for the Nine Months Ended September 30, 1995. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. FIFTH THIRD BANCORP Registrant /s/P. Michael Brumm Date: November 13, 1995 P. Michael Brumm, Executive Vice President and CFO 14 EX-11 2 EXHIBIT 11 FIFTH THIRD BANCORP COMPUTATION OF CONSOLIDATED NET INCOME PER SHARE ($000's except per share data)
For the Three Months For the Nine Months Ended September 30, Ended September 30, 1995 1994 1995 1994 ------ ------ ------ ------ Net Income $ 75,189 62,844 $ 209,821 179,806 ======== ======== ======== ======== Net income per common share - assuming no dilution: Weighted average number of shares outstanding 66,453 64,523 65,582 64,310 ======== ======== ======== ======== Per share (net income divided by the weighted average number of shares outstanding) $ 1.13 0.98 $ 3.20 2.80 ======== ======== ======== ======== Net income per common and common equivalent share: Net income $ 75,189 62,844 $ 209,821 179,806 Add - Interest on 4 1/4% convertible subordinated notes due 1998, net of applicable income taxes 1,079 1,083 3,240 3,250 -------- -------- -------- -------- Adjusted net income $ 76,268 63,927 $ 213,061 183,056 ======== ======== ======== ======== Adjusted weighted average number of shares outstanding - after giving effect to the conversion of stock options and convertible subordinated notes 68,939 67,062 68,016 66,865 ======== ======== ======== ======== Per share (adjusted net income divided by the adjusted weighted average number of shares outstanding) $ 1.11 0.96 $ 3.13 2.74 ======== ======== ======== ======== Net income per common share - assuming full dilution: Adjusted net income $ 76,268 63,927 $ 213,061 183,056 ======== ======== ======== ======== Adjusted weighted average number of shares outstanding - after giving effect to the conversion of stock options and convertible subordinated notes 68,967 67,063 68,108 66,872 ======== ======== ======== ======== Per share (adjusted net income divided by the adjusted weighted average number of shares outstanding) $ 1.11 0.96 $ 3.13 2.74 ======== ======== ======== ========
EX-27 3
9 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FIFTH THIRD BANCORP'S QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1995, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1995 JAN-01-1995 SEP-30-1995 561,545 1,310 6,230 0 2,069,427 2,561,074 2,575,318 11,592,354 173,461 17,152,869 11,721,852 2,924,916 430,109 430,614 148,538 0 0 1,496,840 17,152,869 657,972 200,890 987 859,849 326,455 447,605 412,244 28,479 4,110 291,930 315,004 209,821 0 0 209,821 3.13 3.13 3.90 23,634 20,485 568 0 155,918 28,072 8,983 173,461 173,461 0 0
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