EX-99.2 3 dex992.htm QUARTERLY FINANCIAL SUPPLEMENT Quarterly Financial Supplement

Exhibit 99.2

April 2006                     

LOGO

QUARTERLY FINANCIAL SUPPLEMENT

Investment Community Member:

To assist in your financial analysis, the following supplement of most requested information concerning Fifth Third Bancorp is provided.

Numbers are unaudited for quarterly information.

If you need further information, please fax or e-mail your request to Fifth Third’s Investor Relations Department at (513) 534-0629 or Brad.Adams@53.com

 

R. Mark Graf   Matt Curoe   Brad Adams
SVP/Chief Financial Officer   VP/External Reporting   VP/Investor Relations
(513) 534-6936   (513) 534-0482   (513) 534-0983


LOGO

Quarterly Data

 

     Three Months Ended
    

March 31,

2006

 

December 31,

2005

 

September 30,

2005

 

June 30,

2005

 

March 31,

2005

 

December 31,

2004

 

September 30,

2004

 

June 30,

2004

Ratios (percent)

 

                 

Return on average assets

    1.41     1.27     1.51     1.63     1.62     0.72     1.95     1.91

Return on average equity

    15.3     13.9     16.6     18.1     18.0     7.6     21.1     21.0

Average equity as a percent of average assets

    9.17     9.12     9.11     8.98     9.02     9.51     9.21     9.08

Net interest margin (a)

    3.08     3.11     3.16     3.29     3.38     3.35     3.42     3.54

Efficiency (a)

    54.7     55.6     53.5     52.2     51.6     76.0     47.0     48.8

Net losses charged off as a percent of average loans and leases

    0.42     0.67     0.38     0.34     0.40     0.44     0.40     0.43

Allowance for loan and lease losses as a percent of loans and leases

    1.05     1.06     1.06     1.09     1.11     1.19     1.23     1.31

Allowance for credit losses as a percent of loans and leases

    1.14     1.16     1.16     1.20     1.21     1.31     1.35     1.43

Nonperforming assets as a percent of loans, leases and other assets, including OREO

    0.51     0.52     0.51     0.51     0.53     0.51     0.48     0.50

Allowance for loan and lease losses as a percent of nonperforming assets

    205.78     206.03     207.39     212.17     209.01     235.32     253.29     262.83

Allowance for credit losses as a percent of nonperforming assets

    224.76     225.33     226.99     232.88     228.64     259.05     278.70     286.87

Common Share Data

                 

Earnings per share

  $ 0.66   $ 0.60   $ 0.71   $ 0.75   $ 0.73   $ 0.31   $ 0.84   $ 0.80

Earnings per diluted share

    0.65     0.60     0.71     0.75     0.72     0.31     0.83     0.79

Cash dividends per common share

    0.38     0.38     0.38     0.35     0.35     0.35     0.32     0.32

Book value per share

    17.01     17.00     16.93     16.82     16.04     16.00     16.11     14.97

Common shares outstanding, excluding treasury

    556,500,991     555,623,430     554,400,091     555,938,071     554,054,749     557,648,989     561,112,890     560,804,042

Market price per share:

                 

High

  $ 41.43   $ 42.50   $ 43.99   $ 44.67   $ 48.12   $ 52.34   $ 54.07   $ 57.00

Low

    36.30     35.04     36.38     40.24     42.05     45.32     46.59     51.13

End of period

    39.36     37.72     36.75     41.17     42.98     47.30     49.22     53.78

Price/earnings ratio (b)

    14.52     13.57     14.76     15.77     16.22     17.65     15.68     17.75

Supplemental Data

 

                 

Common dividends declared ($ in millions)

  $ 211   $ 211   $ 210   $ 195   $ 194   $ 195   $ 180   $ 180

Full-time equivalent employees

    21,497     21,681     21,674     21,594     21,287     19,659     19,061     18,937

Banking centers

    1,132     1,119     1,106     1,098     1,092     1,011     1,005     992

ATMs

    2,025     2,024     1,996     1,994     1,988     1,898     1,872     1,844

 

(a) Presented on a fully taxable equivalent basis (“FTE”).
(b) Based on the most recent twelve-month earnings per diluted share and end of period stock prices.

 

2


LOGO

Quarterly Data

 

     Three Months Ended
    

March 31,

2006

 

December 31,

2005

 

September 30,

2005

 

June 30,

2005

 

March 31,

2005

 

December 31,

2004

   

September 30,

2004

 

June 30,

2004

Income Statement ($ in millions)

                 

Interest income (FTE)

  $ 1,405   $ 1,359   $ 1,291   $ 1,223   $ 1,153   $ 1,090     $ 1,052   $ 1,009

Interest expense

    687     624     546     465     394     338       286     238

Net interest income (FTE)

    718     735     745     758     759     752       766     771

Provision for loan and lease losses

    78     134     69     60     67     65       26     90

Noninterest income:

                 

Electronic payment processing revenue

    196     204     190     183     171     175       155     151

Service charges on deposits

    126     133     137     132     121     126       134     131

Mortgage banking net revenue

    47     42     45     46     41     24       49     61

Investment advisory revenue

    91     87     89     92     90     83       89     98

Corporate banking revenue

    76     92     71     74     62     65       54     55

Other noninterest income

    80     77     82     93     108     84       114     253

Securities gains (losses), net

    1     1     8     15     14     (78 )     16     -  

Total noninterest income

    617     636     622     635     607     479       611     749

Noninterest expense:

                 

Salaries, wages and incentives

    284     287     285     295     265     266       252     254

Employee benefits

    87     65     70     67     82     56       64     66

Equipment expense

    27     29     26     25     25     23       22     19

Net occupancy expense

    58     59     54     54     54     48       45     47

Deposit insurance expense

    2     2     2     2     2     2       2     6

Other noninterest expense

    273     321     295     285     277     540       263     350

Total noninterest expense

    731     763     732     728     705     935       648     742

Income before income taxes and cumulative effect (FTE)

    526     474     566     605     594     231       703     688

Taxable equivalent adjustment

    7     7     8     8     8     9       9     9

Income before income taxes and cumulative effect

    519     467     558     597     586     222       694     679

Applicable income taxes

    160     135     163     180     181     46       223     231

Income before cumulative effect

    359     332     395     417     405     176       471     448

Cumulative effect of change in accounting principle, net of tax

    4     -       -       -       -       -         -       -  

Net income

  $ 363   $ 332   $ 395   $ 417   $ 405   $ 176     $ 471   $ 448

Net income available to common shareholders (a)

  $ 363   $ 332   $ 395   $ 417   $ 404   $ 176     $ 471   $ 448

Regulatory Capital Data ($ in millions) (b)

                 

Tier I capital

  $ 8,434   $ 8,209   $ 8,030   $ 7,783   $ 7,509   $ 8,522     $ 8,666   $ 8,346

Tier II capital

    2,033     2,031     2,016     2,131     2,125     1,654       1,674     1,763

Total risk-based capital

  $ 10,467   $ 10,240   $ 10,046   $ 9,914   $ 9,634   $ 10,176     $ 10,340   $ 10,109

Risk-weighted assets

  $ 100,524   $ 97,994   $ 95,083   $ 91,791   $ 89,401   $ 82,633     $ 80,749   $ 78,779

Tier I capital ratio

    8.39%     8.38%     8.45%     8.48%     8.40%     10.31%       10.73%     10.59%

Total risk-based capital ratio

    10.41%     10.45%     10.57%     10.80%     10.78%     12.31%       12.81%     12.83%

Tier I leverage ratio

    8.24%     8.08%     7.93%     7.76%     7.62%     8.89%       9.13%     8.97%

 

(a) Dividends on preferred stock are $.185 million for all quarters presented.
(b) March 31, 2006 regulatory capital data and ratios are estimated.

 

3


LOGO

Quarterly Data

 

     As of  
    

March 31,

2006

   

December 31,

2005

   

September 30,

2005

   

June 30,

2005

   

March 31,

2005

   

December 31,

2004

   

September 30,

2004

   

June 30,

2004

 

Balance Sheet ($ in millions, except share data)

                 

Assets

                 

Cash and due from banks

  $ 2,494     $ 3,078     $ 3,372     $ 2,781     $ 2,420     $ 2,561     $ 2,313     $ 2,358  

Available-for-sale and other securities

    21,276       21,924       22,537       24,647       25,101       24,687       31,557       30,180  

Held-to-maturity securities

    365       389       332       307       303       255       254       212  

Trading securities

    156       117       105       84       128       77       81       97  

Other short-term investments

    159       158       113       113       1,213       532       384       258  

Total cash and securities

    24,450       25,666       26,459       27,932       29,165       28,112       34,589       33,105  

Loans held for sale

    744       1,304       1,237       783       809       559       452       577  

Portfolio loans and leases

    71,422       69,925       68,754       66,296       64,902       59,808       58,036       56,679  

Total loans and leases

    72,166       71,229       69,991       67,079       65,711       60,367       58,488       57,256  

Allowance for loan and lease losses

    (749 )     (744 )     (727 )     (722 )     (717 )     (713 )     (713 )     (744 )

Bank premises and equipment

    1,798       1,726       1,643       1,581       1,529       1,315       1,233       1,168  

Operating lease equipment

    137       143       159       161       224       304       394       525  

Goodwill

    2,194       2,169       2,176       2,178       2,167       979       980       979  

Intangible assets

    189       208       220       231       243       150       157       164  

Servicing rights

    468       441       417       378       378       352       349       358  

Other real estate owned

    68       54       52       52       60       63       61       54  

Other assets

    4,323       4,333       4,218       4,290       3,953       3,527       2,827       2,817  

Total assets

  $ 105,044     $ 105,225     $ 104,608     $ 103,160     $ 102,713     $ 94,456     $ 98,365     $ 95,682  

 

4


LOGO

Quarterly Data

 

     As of  
    

March 31,

2006

   

December 31,

2005

   

September 30,

2005

   

June 30,

2005

   

March 31,

2005

   

December 31,

2004

   

September 30,

2004

   

June 30,

2004

 

Liabilities

                 

Deposits:

                 

Demand

  $ 14,134     $ 14,609     $ 14,294     $ 14,393     $ 13,960     $ 13,486     $ 12,886     $ 13,037  

Interest checking

    17,511       18,282       18,169       18,811       19,722       19,481       19,362       19,243  

Savings

    11,902       11,276       10,437       9,653       9,711       8,310       8,307       7,973  

Money market

    6,399       6,129       5,855       4,732       4,777       4,321       4,264       2,854  

Other time

    10,105       9,313       8,867       8,513       8,017       6,837       6,569       6,019  

Certificates - $100,000 and over

    5,085       4,343       4,195       3,986       3,867       2,121       2,092       2,825  

Foreign office

    3,874       3,482       3,678       3,089       5,257       3,670       3,380       5,957  

Total deposits

    69,010       67,434       65,495       63,177       65,311       58,226       56,860       57,908  

Federal funds purchased

    3,715       5,323       3,548       4,523       2,669       4,714       5,368       3,851  

Short-term bank notes

    -         -         -         -         775       775       1,275       1,275  

Other short-term borrowings

    4,472       4,246       6,075       4,972       4,925       4,537       7,330       6,391  

Other liabilities

    3,632       3,549       3,583       3,641       3,824       3,297       3,364       3,089  

Long-term debt

    14,746       15,227       16,522       17,494       16,321       13,983       15,128       14,775  

Total liabilities

    95,575       95,779       95,223       93,807       93,825       85,532       89,325       87,289  

Shareholders’ Equity

                 

Common and preferred equity

    11,274       11,138       11,038       10,762       10,569       10,507       10,515       10,225  

Additional minimum pension liability

    (5 )     (5 )     (4 )     (4 )     (4 )     (64 )     (66 )     (63 )

Net unrealized gains (losses):

                 

Available-for-sale securities

    (553 )     (395 )     (296 )     (107 )     (295 )     (72 )     (125 )     (439 )

Qualifying cash flow hedges

    (10 )     (13 )     (17 )     (24 )     (24 )     (33 )     (27 )     (52 )

Treasury stock, at cost

    (1,237 )     (1,279 )     (1,336 )     (1,274 )     (1,358 )     (1,414 )     (1,257 )     (1,278 )

Total shareholders’ equity

  $ 9,469     $ 9,446     $ 9,385     $ 9,353     $ 8,888     $ 8,924     $ 9,040     $ 8,393  

Share Data

                 

Preferred shares outstanding

    9,250       9,250       9,250       9,250       9,250       9,250       9,250       9,250  

Common shares outstanding, excluding treasury

    556,500,991       555,623,430       554,400,091       555,938,071       554,054,749       557,648,989       561,112,890       560,804,042  

Treasury shares held

    26,926,113       27,803,674       29,027,013       27,489,033       29,372,355       25,802,702       22,338,801       22,647,649  

 

5


LOGO

Quarterly Data

 

     Three Months Ended  
    

March 31,

2006

   

December 31,

2005

   

September 30,

2005

   

June 30,

2005

   

March 31,

2005

   

December 31,

2004

   

September 30,

2004

   

June 30,

2004

 

Average Balance Sheet ($ in millions, except share data)

                 

Assets

                 

Interest-earning assets:

                 

Loans and leases

  $ 71,634     $ 70,489     $ 68,556     $ 66,762     $ 65,076     $ 59,440     $ 57,679     $ 56,325  

Taxable securities

    22,116       22,376       24,013       24,771       24,935       28,379       30,241       29,987  

Tax exempt securities

    644       698       787       815       856       866       890       920  

Other short-term investments

    157       200       115       130       328       480       282       266  

Total interest-earning assets

    94,551       93,763       93,471       92,478       91,195       89,165       89,092       87,498  

Cash and due from banks

    2,668       2,847       2,742       2,822       2,619       2,445       2,265       2,106  

Other assets

    8,261       8,105       8,207       8,182       7,909       6,171       5,603       5,447  

Allowance for loan and lease losses

    (744 )     (727 )     (721 )     (717 )     (714 )     (719 )     (748 )     (720 )

Total assets

  $ 104,736     $ 103,988     $ 103,699     $ 102,765     $ 101,009     $ 97,062     $ 96,212     $ 94,331  

Liabilities

                 

Interest-bearing liabilities:

                 

Interest checking

  $ 17,603     $ 17,828     $ 18,498     $ 19,267     $ 19,972     $ 19,345     $ 19,570     $ 19,268  

Savings

    11,588       11,036       9,939       9,697       9,339       8,447       8,212       7,803  

Money market

    6,086       5,974       5,154       4,755       4,786       4,227       3,542       2,965  

Other time

    9,749       9,143       8,730       8,286       7,787       6,681       6,539       5,822  

Certificates - $100,000 and over

    4,670       4,354       4,156       3,946       3,539       2,106       2,459       2,836  

Foreign office

    4,050       3,703       3,925       3,907       4,340       4,073       3,315       4,488  

Federal funds purchased

    4,553       4,771       4,001       3,952       4,170       4,880       4,847       6,689  

Short-term bank notes

    -         -         -         230       775       1,188       1,275       1,045  

Other short-term borrowings

    4,718       4,408       5,619       5,190       4,933       5,140       7,152       7,441  

Long-term debt

    15,132       15,956       16,914       17,049       15,604       15,585       15,055       12,317  

Total interest-bearing liabilities

    78,149       77,173       76,936       76,279       75,245       71,672       71,966       70,674  

Demand deposits

    13,674       14,099       13,977       13,905       13,484       13,107       12,537       12,251  

Other liabilities

    3,312       3,236       3,335       3,357       3,172       3,054       2,848       2,840  

Total liabilities

    95,135       94,508       94,248       93,541       91,901       87,833       87,351       85,765  

Shareholders’ equity

    9,601       9,480       9,451       9,224       9,108       9,229       8,861       8,566  

Total liabilities & shareholders’ equity

  $ 104,736     $ 103,988     $ 103,699     $ 102,765     $ 101,009     $ 97,062     $ 96,212     $ 94,331  

Average loans and leases (excluding held for sale)

  $ 70,603     $ 69,218     $ 67,539     $ 65,649     $ 64,269     $ 58,714     $ 57,160     $ 54,960  

Average common shares outstanding:

                 

Basic

    554,397,914       553,590,943       553,854,684       553,871,720       556,361,533       560,161,550       560,335,242       560,976,289  

Diluted

    556,868,587       556,321,949       557,681,044       558,176,454       561,658,848       566,107,746       566,543,043       568,715,944  

 

6


LOGO

Quarterly Data

 

     Three Months Ended
    

March 31,

2006

 

December 31,

2005

 

September 30,

2005

 

June 30,

2005

 

March 31,

2005

 

December 31,

2004

 

September 30,

2004

 

June 30,

2004

Asset Quality ($ in millions)

                 

Nonaccrual loans and leases

  $ 291   $ 294   $ 285   $ 273   $ 268   $ 228   $ 207   $ 216

Renegotiated loans and leases

    -       -       1     1     1     1     3     3

Other assets, including other real estate owned

    73     67     65     66     74     74     72     64

Total nonperforming assets

  $ 364   $ 361   $ 351   $ 340   $ 343   $ 303   $ 282   $ 283

Ninety days past due loans and leases

  $ 160   $ 155   $ 156   $ 129   $ 129   $ 142   $ 137   $ 132

End of Period Loans and Leases ($ in millions) (net of unearned discount)

                 

Commercial:

                 

Commercial loans

  $ 19,879   $ 19,299   $ 18,596   $ 18,017   $ 17,501   $ 16,058   $ 15,271   $ 15,276

Commercial mortgage

    9,861     9,188     9,138     9,091     9,048     7,636     7,644     7,541

Commercial construction

    5,883     6,342     5,880     5,590     5,365     4,348     4,077     3,768

Commercial leases

    3,726     3,698     3,619     3,537     3,416     3,426     3,357     3,275

Subtotal - commercial

    39,349     38,527     37,233     36,235     35,330     31,468     30,349     29,860

Consumer:

                 

Residential mortgage

    8,405     8,296     8,564     7,808     8,208     7,533     6,912     6,416

Residential construction

    717     695     649     611     557     378     371     340

Credit card

    851     866     805     749     790     843     809     779

Home equity

    12,087     12,000     11,766     11,521     11,085     10,508     10,243     9,848

Other consumer loans

    9,318     9,250     9,236     8,343     7,840     7,586     7,595     7,676

Consumer leases

    1,439     1,595     1,738     1,812     1,901     2,051     2,209     2,337

Subtotal - consumer

    32,817     32,702     32,758     30,844     30,381     28,899     28,139     27,396

Total loans and leases

  $ 72,166   $ 71,229   $ 69,991   $ 67,079   $ 65,711   $ 60,367   $ 58,488   $ 57,256

 

7


LOGO

Quarterly Data

 

     Three Months Ended  
    

March 31,

2006

   

December 31,

2005

   

September 30,

2005

   

June 30,

2005

   

March 31,

2005

   

December 31,

2004

   

September 30,

2004

   

June 30,

2004

 

Average Loans and Leases ($ in millions) (net of unearned discount)

                 

Commercial:

                 

Commercial loans

  $ 19,461     $ 18,909     $ 18,203     $ 17,768     $ 18,073     $ 15,565     $ 15,068     $ 14,724  

Commercial mortgage

    9,441       9,159       9,095       9,042       8,385       7,617       7,582       7,327  

Commercial construction

    6,211       6,051       5,700       5,467       4,870       4,247       3,963       3,598  

Commercial leases

    3,686       3,611       3,537       3,436       3,393       3,333       3,300       3,306  

Subtotal - commercial

    38,799       37,730       36,535       35,713       34,721       30,762       29,913       28,955  

Consumer:

                 

Residential mortgage

    8,351       8,444       8,271       8,453       8,417       7,346       6,631       6,173  

Residential construction

    706       673       624       576       468       378       352       326  

Credit card

    855       825       778       755       830       827       797       767  

Home equity

    12,072       11,884       11,702       11,325       10,909       10,403       10,056       9,557  

Other consumer loans

    9,311       9,251       8,868       8,089       7,752       7,592       7,651       8,187  

Consumer leases

    1,540       1,682       1,778       1,851       1,979       2,132       2,279       2,360  

Subtotal - consumer

    32,835       32,759       32,021       31,049       30,355       28,678       27,766       27,370  

Total average loans and leases

  $ 71,634     $ 70,489     $ 68,556     $ 66,762     $ 65,076     $ 59,440     $ 57,679     $ 56,325  

Nonperforming Loans ($ in millions) (non-accrual plus renegotiated)

                 

Commercial construction loans

  $ 20     $ 31     $ 29     $ 24     $ 23     $ 13     $ 11     $ 14  

Commercial mortgage

    74       51       53       56       56       51       51       47  

Commercial loans and leases

    126       146       140       132       132       111       99       107  

Consumer mortgage and construction

    34       30       31       25       24       24       22       23  

Other consumer loans and leases

    37       36       33       37       34       30       27       28  

Total nonperforming loans

  $ 291     $ 294     $ 286     $ 274     $ 269     $ 229     $ 210     $ 219  

Credit Charge-Offs ($ in millions)

                 

Gross charge-offs

  $ (96 )   $ (137 )   $ (79 )   $ (76 )   $ (80 )   $ (84 )   $ (72 )   $ (76 )

Recoveries

    23       20       15       21       17       19       15       17  

Net losses charged off

  $ (73 )   $ (117 )   $ (64 )   $ (55 )   $ (63 )   $ (65 )   $ (57 )   $ (59 )

 

8