-----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, BUt1tdUDPt8KlUPp9h57Q+grL/gxjdD17h8+/ZGwy2pFBkedo9LBh4i2ZFDLPS9z ZGC+mtwT34N8bAjEtcsPHw== 0000950152-99-002744.txt : 19990331 0000950152-99-002744.hdr.sgml : 19990331 ACCESSION NUMBER: 0000950152-99-002744 CONFORMED SUBMISSION TYPE: 10-K405/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990330 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-K405/A SEC ACT: SEC FILE NUMBER: 333-72465 FILM NUMBER: 99578640 BUSINESS ADDRESS: STREET 1: 38 FOUNTAIN SQ PLZ STREET 2: FIFTH THIRD CENTER CITY: CINCINNATI STATE: OH ZIP: 45263 BUSINESS PHONE: 5135795300 10-K405/A 1 FIFTH THIRD BANCORP 10-K405 AMENDED 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K/A ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For fiscal year ended December 31, 1998 Commission File Number 0-8076 FIFTH THIRD BANCORP (Exact name of Registrant as specified in its charter) Ohio 31-0854434 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 38 Fountain Square Plaza Cincinnati, Ohio 45263 (Address of principal executive offices)(Zip Code) Registrant's telephone number, including area code:(513)579-5300 Securities registered pursuant to Section 12(g) of the Act: Common Stock Without Par Value 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.// Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. /X/ The Aggregate Market Value of the Voting Stock held by non-affiliates of the Registrant was $12,846,228,056 as of February 1, 1999. (1) There were 267,147,048 shares of the Registrant's Common Stock, without par value, outstanding as of February 1, 1999. DOCUMENTS INCORPORATED BY REFERENCE 1998 Annual Report to Shareholders: Parts I, II, and IV Proxy Statement for 1999 Annual Meeting of Shareholders: Parts III and IV (1) In calculating the market value of securities held by non-affiliates of Registrant as disclosed in the cover page of this Form 10-K, Registrant has treated as securities held by affiliates as of December 31, 1998, voting stock owned of record by its directors and principal executive officers, shareholders owning greater than 10% of the voting stock and voting stock held by Registrant's trust departments in a fiduciary capacity. 2 PART I ITEM 1. BUSINESS - ----------------- ORGANIZATION Fifth Third Bancorp (the "Company") is an Ohio corporation organized in 1975 as a bank holding company registered under the Bank Holding Company Act of 1956, as amended (the "Act"), and subject to regulation by the Federal Reserve Board. The Company, with its principal office located in Cincinnati, is a multi-bank holding company as defined in the Act and is registered as such with the Board of Governors of the Federal Reserve System and has 17 wholly-owned subsidiaries: Fifth Third Bank; Fifth Third Bank, Central Ohio; Fifth Third Bank, Northwestern Ohio, N.A.; Fifth Third Bank, Ohio Valley; Fifth Third Bank, Western Ohio; Fifth Third Bank, Florida; Fifth Third Bank, Northern Kentucky, Inc.; Fifth Third Bank, Kentucky, Inc.; Fifth Third Bank, Indiana; Fifth Third Bank, Southwest, F.S.B.; Fifth Third Community Development Company; Fifth Third Investment Company; Fountain Square Insurance Company; Calvin Hotel Co.; Fifth Third/The Ohio Company; State Savings Mortgage Company and Heartland Capital Management, Inc. At December 31, 1998, the Company, its affiliated banks and other subsidiaries had consolidated total assets of $28.9 billion, consolidated total deposits of $18.8 billion and consolidated total shareholders' equity of $3.2 billion. The Company, through its subsidiaries, engages primarily in commercial, retail and trust banking, investment services and leasing activities and also provides credit life, accident and health insurance, discount brokerage services and property management for its properties. Those subsidiaries consist of The Fifth Third Company, Fifth Third Securities, Inc., The Fifth Third Leasing Company, Midwest Payment Systems, Inc. ("MPS"), Fifth Third International Company and Fifth Third/W. Lyman Case & Company. Fifth Third's affiliates provide a full range of financial products and services to the retail, commercial, financial, governmental, educational and medical sectors, including a wide variety of checking, savings and money market accounts, and credit products such as credit cards, installment loans, mortgage loans and leasing. Each of the banking affiliates has deposit insurance provided by the Federal Deposit Insurance Corporation ("FDIC") through the Bank Insurance Fund ("BIF") and the Savings Association Insurance Fund ("SAIF"). The Company, through its banking subsidiaries, operates for itself and other financial institutions a proprietary automated teller machine ("ATM") network, Jeanie(R). The Jeanie system participates in a shared ATM network called "Money Station(R)," which includes several Ohio bank holding companies and over 5,000 ATM's. The "Money Station" network participates in another shared ATM network called "PLUS System(R)," which is a nationwide network with over 170,000 participating ATM's. Fifth Third Bank, through its wholly-owned subsidiary, MPS, also provides electronic switch services for several regional banks and bank holding companies in Ohio, Kentucky and Illinois. 3 3 Fifth Third International Company has a 99.9 percent owned subsidiary: Fifth Third Trade Services Limited. Fifth Third Investment Company owns the remaining .01 percent. The Fifth Third Leasing Company has a 100 percent owned subsidiary: Fifth Third Auto Leasing Trust. ACQUISITIONS The Company is the result of mergers and acquisitions over the years involving financial institutions throughout Ohio, Indiana, Kentucky, Arizona and Florida. The Company made the following acquisitions during 1998: On April 9, 1998, the Company acquired W. Lyman Case & Company, a commercial mortgage banking company headquartered in Columbus, Ohio, for $15 million. W. Lyman Case & Company originated more than $680 million in financing and equity transactions since acquisition and has a loan servicing portfolio of $2 billion at year-end 1998. On June 12, 1998, the Company acquired The Ohio Company, a full-service broker-dealer for retail and institutional clients headquartered in Columbus, Ohio, for consideration consisting of 1,862,765 shares of the Company's common stock. These transactions were accounted for as purchases. On June 19, 1998, the Company acquired State Savings Company ("State"), a privately-owned thrift holding company headquartered in Columbus, Ohio with $2.7 billion in assets. On June 26, 1998, the Company acquired CitFed Bancorp, Inc. ("CitFed"), a publicly-traded savings and loan holding company headquartered in Dayton, Ohio with $3.1 billion in assets. These transactions were tax-free, stock-for-stock exchanges accounted for as poolings-of-interests. The Company exchanged 16,625,271 shares of the Company's common stock for all outstanding shares of State. The Company exchanged 13,222,869 shares of the Company's common stock for each outstanding share of CitFed. Financial data for all prior periods has been restated to reflect the second quarter 1998 mergers with CitFed and State. Cash dividends per common share are those of the Company declared prior to the mergers with CitFed and State. The restatement of the CitFed merger was accomplished by combining CitFed's March 31, 1998 fiscal year financial information with the Company's December 31, 1997 calendar year financial information. In 1998, CitFed's fiscal year was conformed to the Company's calendar year. As a result of conforming fiscal periods, the Company's Consolidated Statements of Income for the fourth quarter of 1997 and the first quarter of 1998 include CitFed's net income for the three months ended March 31, 1998 of $7.8 million. An adjustment to shareholders' equity removes the effect of including CitFed's financial results in both periods. COMPETITION There are hundreds of commercial banks, savings and loans and other financial services providers in Ohio, Kentucky, Indiana, Arizona and Florida and nationally, which provide strong 4 4 competition to the Company's banking subsidiaries. As providers of a full range of financial services, these subsidiaries compete with national and state banks, savings and loan associations, securities dealers, brokers, mortgage bankers, finance and insurance companies, and other financial service companies. With respect to data processing services, the Bank's data processing subsidiary, Midwest Payment Systems, Inc., competes with other electronic fund transfer (EFT) service providers such as Electronic Payment Systems, Deluxe Corporation and Electronic Data Systems and other merchant processing providers such as First Data Corporation, National Processing, Inc. and First USA Paymentech, Inc. The earnings of the Company are affected by general economic conditions as well as by the monetary policies of the Federal Reserve Board. Such policies, which include regulating the national supply of bank reserves and bank credit, can have a major effect upon the source and cost of funds and the rates of return earned on loans and investments. The Federal Reserve influences the size and distribution of bank reserves through its open market operations and changes in cash reserve requirements against member bank deposits. REGULATION AND SUPERVISION The Company, as a bank holding company, is subject to the restrictions of the Act. The Act provides that the acquisition of control of a bank is subject to the prior approval of the Board of Governors of the Federal Reserve System. The Company is required to obtain the prior approval of the Federal Reserve Board before it can acquire control of more than 5 percent of the voting shares of another bank. The Act does not permit the Federal Reserve Board to approve an acquisition by the Company, or any of its subsidiaries, of any bank located in a state other than Ohio, unless the acquisition is specifically authorized by the law of the state in which such bank is located. On September 29, 1994, the Act was amended by The Interstate Banking and Branch Efficiency Act of 1994 which authorizes interstate bank acquisitions anywhere in the country effective one year after the date of enactment, and interstate branching by acquisition and consolidation effective June 1, 1997, in those states that have not opted out by that date. The Company's subsidiary state banks are primarily subject to the laws of the state in which each is located, the Board of Governors of the Federal Reserve System and/or the Federal Deposit Insurance Corporation. The subsidiary bank which is organized under the laws of the United States is primarily subject to regulation by the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The Company's savings and loan subsidiary is subject to regulation by the Office of Thrift Supervision. The Company and its subsidiaries are subject to certain restrictions on intercompany loans and investments. The Company and its subsidiaries are also subject to certain restrictions with respect to engaging in the underwriting and public sale and distribution of securities. In addition, 5 5 the Company and its subsidiaries are subject to examination at the discretion of supervisory authorities. The Act limits the activities which may be engaged in by the Company and its subsidiaries to ownership of banks and those activities which the Federal Reserve Board has deemed or may in the future find to be so closely related to banking as to be a proper incident thereto. The Financial Reform, Recovery and Enforcement Act of 1989 (FIRREA) provides that a holding company's controlled insured depository institutions are liable for any loss incurred by the Federal Deposit Insurance Corporation in connection with the default of, or any FDIC-assisted transaction involving, an affiliated insured bank or savings association. The Federal Deposit Insurance Corporation Improvement Act of 1991 (the "FDIC Improvement Act") covers a wide expanse of banking regulatory issues. The FDIC Improvement Act deals with the recapitalization of the Bank Insurance Fund, with deposit insurance reform, including requiring the FDIC to establish a risk-based premium assessment system, and with a number of other regulatory and supervisory matters. EMPLOYEES As of December 31, 1998, there were no employees of the Company. Subsidiaries of the Company employed 8,761 employees -- 1,383 were officers and 1,568 were part-time employees. There were 8,330 full-time equivalent employees as of December 31, 1998. STATISTICAL INFORMATION Pages 6 to 13 contain statistical information on the Company and its subsidiaries. Information about the Company's business segments is incorporated herein by reference to pages 28 and 29 of Registrant's 1998 Annual Report to Shareholders attached to this filing as Exhibit 13. 6 6 SECURITIES PORTFOLIO The securities portfolio as of December 31 for each of the last five years, and the maturity distribution and weighted average yield of securities as of December 31, 1998, are incorporated herein by reference to the securities tables on page 36 of the Company's 1998 Annual Report to Shareholders attached to this filing as Exhibit 13. The weighted average yields for the securities portfolio are yields to maturity weighted by the par values of the securities. The weighted average yields on securities exempt from income taxes are computed on a taxable-equivalent basis. The taxable-equivalent yields are net after-tax yields to maturity divided by the complement of the full corporate tax rate (35 percent). In order to express yields on a taxable-equivalent basis, yields on obligations of states and political subdivisions (municipal securities) have been increased as follows: Under 1 year 2.70% 1 - 5 years 2.46% 6 - 10 years 2.55% Over 10 years 2.83% Total municipal securities 2.52%
AVERAGE BALANCE SHEETS The average balance sheets are incorporated herein by reference to Table 1 on pages 30 and 31 of the Company's 1998 Annual Report to Shareholders attached to this filing as Exhibit 13. ANALYSIS OF NET INTEREST INCOME AND NET INTEREST INCOME CHANGES The analysis of net interest income and the analysis of net interest income changes are incorporated herein by reference to Table 1 and Table 2 and the related discussion on pages 30 through 32 of the Company's 1998 Annual Report to Shareholders attached to this filing as Exhibit 13. 7 7 TYPES OF LOANS AND LEASES A summary of loans and leases by major category as of December 31 ($000's):
1998 1997 1996 1995 1994 ---- ---- ---- ---- --- Commercial, financial and agricultural loans $ 4,822,992 4,363,289 4,093,432 3,663,973 3,104,599 Real estate - construction loans 572,082 560,381 593,276 530,940 438,073 Real estate - mortgage loans 5,448,632 6,311,872 5,884,557 5,425,989 5,443,570 Consumer loans 3,354,681 3,068,597 2,837,742 3,235,003 2,546,688 Lease financing 4,269,851 3,582,731 3,095,894 2,297,125 1,703,492 ------------------------------------ ---------------- ---------------- --------------- Loans and leases, gross 18,468,238 17,886,870 16,504,901 15,153,030 13,236,422 Unearned income (689,215) (573,927) (470,378) (339,833) (243,648) Reserve for credit losses (266,860) (250,950) (233,803) (224,134) (202,009) ------------------------------------ ---------------- ---------------- --------------- Loans and leases, net $ 17,512,163 17,061,993 15,800,720 14,589,063 12,790,765 ==================================== ================ ================ =============== Loans held for sale $ 492,017 263,772 74,916 139,484 41,723 ==================================== ================ ================ ===============
MATURITIES AND SENSITIVITY OF LOANS TO CHANGES IN INTEREST RATES The remaining maturities of the loan portfolio distributed to reflect cash flows (excluding residential mortgage and consumer loans) at December 31, 1998, based on scheduled repayments and the sensitivity of loans to interest rate changes for loans due after one year ($000's):
Commercial, Financial and Real Estate Real Estate Agricultural Construction Commercial Loans Loans Loans Total ------------------------------------ ---------------- ---------------- Due in one year or less $ 2,219,859 332,350 476,777 $ 3,028,986 Due after one year through five years 1,795,744 155,026 582,166 2,532,936 Due after five years 807,389 84,706 119,809 1,011,904 ------------------------------------ ---------------- ---------------- Total $ 4,822,992 572,082 1,178,752 $ 6,573,826 ==================================== ================ ================ Loans due after one year: Predetermined interest rate $ 2,075,132 154,495 531,405 $ 2,761,032 ==================================== ================ ================ Floating or adjustable interest rate $ 528,001 85,237 170,570 $ 783,808 ==================================== ================ ================
8 8 RISK ELEMENTS Interest on loans is normally accrued at the rate agreed upon at the time each loan was negotiated. It is the Company's policy to discontinue accrual of interest on commercial, construction and mortgage loans when there is a clear indication the borrower's cash flow may not be sufficient to meet payments as they become due. Such loans, other than consumer loans, are also placed on nonaccrual status when principal or interest is past due ninety days or more, unless the loan is well secured and in the process of collection. The following table presents data concerning loans and leases at risk at December 31 ($000's):
1998 1997 1996 1995 1994 ----- ----- ----- ----- ---- Nonaccrual loans and leases $ 42,760 71,667 66,745 76,281 39,253 Loans and leases contractually past due ninety days or more as to interest, principal or rental payments but still accruing interest 79,233 46,281 38,053 20,455 13,237 Loans and leases renegotiated to provide a reduction or deferral of interest, principal or rental payments because of the financial position deterioration of the borrower - 128 1,121 506 443
As of December 31, 1998, there were $46,742,000 of loans and leases currently performing in accordance with contractual terms where there are serious doubts as to the ability of the borrower to comply with such terms. For the years 1998, 1997 and 1996, interest income of $789,000, $714,000 and $807,000, respectively was recorded on nonaccrual and renegotiated loans and leases. Additional interest income of $2,837,000, $5,482,000 and $6,329,000 would have been recorded if the nonaccrual and renegotiated loans and leases had been current in accordance with their original terms. 9 9 SUMMARY OF CREDIT LOSS EXPERIENCE A summary of the activity in the reserve for credit losses arising from provisions charged to operations, losses charged off and recoveries of losses previously charged off ($000's):
1998 1997 1996 1995 1994 ----- ----- ----- ----- ---- Loans and leases outstanding at December 31: $ 17,779,023 17,312,943 16,034,523 14,813,197 12,992,774 ================= ================ ================ ================ ================ Loans held for sale $ 492,017 263,772 74,916 139,484 41,723 ================= ================ ================ ================ ================ Average loans and leases outstanding $ 17,664,000 16,583,000 15,612,000 13,929,000 12,195,000 ================= ================ ================ ================ ================ Reserve for credit losses, January 1 $ 250,950 233,803 224,134 202,009 185,416 ----------------- ---------------- ---------------- ---------------- ---------------- Losses charged off: Commercial, financial and agricultural loans (35,335) (8,952) (11,349) (6,950) (9,321) Real estate - construction loans (953) (5) (147) (69) - Real estate - mortgage loans (7,562) (8,348) (7,602) (7,776) (4,894) Consumer loans (51,267) (61,177) (54,216) (26,967) (17,105) Lease financing (28,570) (23,034) (13,284) (5,084) (2,252) ----------------- ---------------- ---------------- ---------------- ---------------- Total losses (123,687) (101,516) (86,598) (46,846) (33,572) ----------------- ---------------- ---------------- ---------------- ---------------- Recoveries of losses previously charged off: Commercial, financial and agricultural loans 1,313 2,461 2,915 1,607 1,864 Real estate - construction loans 75 293 - 61 - Real estate - mortgage loans 2,096 2,017 2,866 2,845 4,229 Consumer loans 17,824 15,777 13,400 8,652 9,041 Lease financing 5,612 6,315 2,866 1,393 773 ----------------- ---------------- ---------------- ---------------- ---------------- Total recoveries 26,920 26,863 22,047 14,558 15,907 ----------------- ---------------- ---------------- ---------------- ---------------- Net losses charged off: Commercial, financial and agricultural loans (34,022) (6,491) (8,434) (5,343) (7,457) Real estate - construction loans (878) 288 (147) (8) - Real estate - mortgage loans (5,466) (6,331) (4,736) (4,931) (665) Consumer loans (33,443) (45,400) (40,816) (18,315) (8,064) Lease financing (22,958) (16,719) (10,418) (3,691) (1,479) ----------------- ---------------- ---------------- ---------------- ---------------- Total net losses charged off (96,767) (74,653) (64,551) (32,288) (17,665) ----------------- ---------------- ---------------- ---------------- ---------------- Letter of credit - - - - (7,800) Reserve of acquired institutions and other 3,506 1,705 5,838 8,479 875 Provision charged to operations 109,171 90,095 68,382 45,934 41,183 ----------------- ---------------- ---------------- ---------------- ---------------- Reserve for credit losses, December 31 $ 266,860 250,950 233,803 224,134 202,009 ================= ================ ================ ================ ================ Reserve as a percent of loans and leases outstanding 1.50% 1.45 1.46 1.51 1.55 ================= ================ ================ ================ ================
10 10 SUMMARY OF CREDIT LOSS EXPERIENCE, CONTINUED
Fifth Third Bancorp Allocation of Reserve for Credit Losses 1998 1997 1996 1995 1994 ----- ----- ----- ----- ---- Commercial, financial and agricultural loans $ 67,004 94,484 102,444 124,886 121,861 Real estate - construction loans 4,024 5,990 1,952 1,492 1,442 Real estate - mortgage loans 1,408 1,696 1,941 2,017 1,970 Consumer loans 120,506 94,017 84,786 66,092 54,767 Lease financing 73,918 54,763 42,680 29,647 21,969 -------------- --------------- -------------- --------------- ------------ Total reserve for credit losses $ 266,860 250,950 233,803 224,134 202,009 ============== =============== ============== =============== ============
The analysis above is for analytical purposes. The reserve for credit losses is general in nature and is available to absorb losses from any portion of the loan and lease portfolio. The distribution of loans and leases by type and the ratio of net charge-offs to average loans and leases outstanding:
1998 1997 1996 1995 1994 ----- ----- ----- ----- ---- Percentage of loans and leases to total loans and leases at December 31: Commercial, financial and agricultural loans 26.2% 24.6 25.2 24.4 23.7 Real estate - construction loans 3.1 3.2 3.7 3.5 3.3 Real estate - mortgage loans 32.2 37.4 37.0 37.1 42.0 Consumer loans 18.7 17.5 17.6 21.6 19.6 Lease financing 19.8 17.3 16.5 13.4 11.4 -------------- --------------- -------------- ---------------- ------------ Total 100.0% 100.0 100.0 100.0 100.0 ============== =============== ============== ================ ============
Ratio of net charge-offs during year to average loans and leases outstanding during year: Commercial, financial and agricultural loans 0.74% 0.15 0.22 0.16 0.24 Real estate - construction loans 0.16 (0.05) 0.03 0.00 0.00 Real estate - mortgage loans 0.09 0.10 0.08 0.09 0.01 Consumer loans 1.04 1.54 1.34 0.63 0.32 Lease financing 0.69 0.58 0.45 0.21 0.10 Weighted Average Ratio 0.55 0.45 0.41 0.23 0.14
11 11 RESERVE FOR CREDIT LOSSES The reserve is maintained at a level management considers to be adequate to absorb probable loan and lease losses inherent in the portfolio. Credit losses are charged and recoveries are credited to the reserve. Provisions for credit losses are based on management's review of the historical credit loss experience and such other factors which, in management's judgment, deserve consideration under existing economic conditions in estimating potential credit losses. Based on the procedures discussed below, management is of the opinion the reserve of $266,860,000 at December 31, 1998 was adequate. In determining the adequacy of the reserve for credit losses, management of each affiliate bank, on a quarterly basis, specifically evaluates the necessity of a reserve for individual loans classified by management. The specifically allocated reserve for a classified loan is determined based on management's estimate of the borrower's ability to repay the loan given the availability of collateral, other sources of cash flow, and legal options available to the Company. Once a review is completed, the need for a specific reserve is determined by senior management and allocated to the loan. Other loans not specifically reviewed by management are evaluated using a rolling five-year average historical charge-off experience ratio calculated by type of loan. The historical charge-off ratio factors into account the homogeneous nature of the loans, the geographical lending areas involved, regulatory examination findings, specific grading systems applied and any other known factors which may impact the ratios used. Specific reserves on individual loans and historical ratios are reviewed quarterly and adjusted as necessary based on subsequent collections, loan upgrades or downgrades, nonperforming trends or actual principal charge-offs. The Company's primary market area for lending is Ohio, Kentucky and Indiana. When evaluating the adequacy of reserves, consideration is given to this regional geographic concentration and the closely-associated effect changing economic conditions has on the Company's customers. MATURITY DISTRIBUTION OF DOMESTIC CERTIFICATES OF DEPOSIT OF $100,000 AND OVER AT DECEMBER 31, 1998 ($000'S) Three months or less $ 782,236 Over three months through six months 192,588 Over six months through twelve months 183,535 Over twelve months 125,221 ------------- Total certificates - $100,000 and over $ 1,283,580 =============
Foreign office deposits totaling $353,824 are denominated in amounts greater than $100,000. 12 12 RETURN ON EQUITY AND ASSETS The following table presents certain operating ratios:
1998(1) 1997 1996(2) ------- ---- ------- Return on assets (a) 1.67% 1.74 1.55 Return on equity (b) 16.2% 18.4 16.3 Dividend payout ratio (c) 40.3% 33.6 34.8 Equity to assets ratio (d) 10.33% 9.48 9.46
- --------------------------------------------------------------- (a) net income divided by average assets (b) net income divided by average equity (c) dividends declared per share divided by diluted earnings per share, as originally reported (d) average equity divided by average assets (1) Certain 1998 ratios and statistics include merger-related items of $106.4 million pretax ($75.6 million after tax or $.28 per share). For comparability, excluding the merger-related items, return on average assets, return on average equity and the dividend payout ratio for 1998 would have been 1.93%, 18.7% and 34.8%, respectively. (2) Certain 1996 ratios include the special SAIF assessment of $37.9 million pretax ($24.6 million after tax or $.09 per share). For comparability, excluding the impact of this assessment, return on average assets, return on average equity and the dividend payout ratio for 1996 would have been 1.64%, 17.4% and 33.8%, respectively. 13 13 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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/George A. Schaefer, Jr. February 12, 1999 - -------------------------- George A. Schaefer, Jr. President and CEO (Principal Executive Officer) Pursuant to requirements of the Securities Exchange Act of 1934, this report has been signed on February 12, 1999 by the following persons on behalf of the Registrant and in the capacities indicated.
/s/Neal E. Arnold /s/Roger W. Dean - ----------------- ---------------- ----------------- Neal E. Arnold Roger W. Dean Robert B. Morgan Executive Vice President and CEO Controller Director (Principal Financial Officer) (Principal Accounting Officer) - ----------------- ---------------- ----------------- Darryl F. Allen John R. Herschede David E. Reese Director Director Director - ----------------- ---------------- ----------------- John F. Barrett Allen M. Hill James E. Rogers Director Director Director - ----------------- ---------------- ----------------- Gerald V. Dirvin William G. Kagler Brian H. Rowe Director Director Director - ----------------- ---------------- ----------------- Thomas D. Donnell James D. Kiggen Donald B. Schackelford Director Director Director /s/George A. Schaefer, Jr. - ----------------- ---------------- ----------------- Richard T. Farmer Jerry L. Kirby George A. Schaefer, Jr. Director Director Director - ----------------- ---------------- ----------------- Joseph H. Head, Jr. Mitchal D. Livingston, Ph.D. John J. Schiff, Jr. Director Director Director
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