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

Exhibit 99.2

July 2006                     

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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

 

Christopher Marshall   Matt Curoe   Brad Adams
EVP/Chief Financial Officer   VP/External Reporting   VP/Investor Relations
(513) 534-6936   (513) 534-0482   (513) 534-0983


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Quarterly Data

 

     Three Months Ended
     June 30,
2006
  March 31,
2006
  December 31,
2005
  September 30,
2005
  June 30,
2005
  March 31,
2005
  December 31,
2004
  September 30,
2004

Ratios (percent)

 

                 

Return on average assets

    1.45     1.41     1.27     1.51     1.63     1.62     0.72     1.95

Return on average equity

    16.0     15.3     13.9     16.6     18.1     18.0     7.6     21.1

Average equity as a percent of average assets

    9.09     9.17     9.12     9.11     8.98     9.02     9.51     9.21

Net interest margin (a)

    3.01     3.08     3.11     3.16     3.29     3.38     3.35     3.42

Efficiency (a)

    55.3     54.7     55.6     53.5     52.2     51.6     76.0     47.0

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

    0.37     0.42     0.67     0.38     0.34     0.40     0.44     0.40

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

    1.04     1.05     1.06     1.06     1.09     1.11     1.19     1.23

Allowance for credit losses as a percent of loans and leases

    1.14     1.14     1.16     1.16     1.20     1.21     1.31     1.35

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

    0.49     0.51     0.52     0.51     0.51     0.53     0.51     0.48

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

    210.37     205.78     206.03     207.39     212.17     209.01     235.32     253.29

Allowance for credit losses as a percent of nonperforming assets

    230.94     224.76     225.33     226.99     232.88     228.64     259.05     278.70

Common Share Data

                 

Earnings per share

  $ 0.69   $ 0.66   $ 0.60   $ 0.71   $ 0.75   $ 0.73   $ 0.31   $ 0.84

Earnings per diluted share

    0.69     0.65     0.60     0.71     0.75     0.72     0.31     0.83

Cash dividends per common share

    0.40     0.38     0.38     0.38     0.35     0.35     0.35     0.32

Book value per share

    17.13     17.01     17.00     16.93     16.82     16.04     16.00     16.11

Common shares outstanding, excluding treasury

    557,894,188     556,500,991     555,623,430     554,400,091     555,938,071     554,054,749     557,648,989     561,112,890

Market price per share:

                 

High

  $ 41.02   $ 41.43   $ 42.50   $ 43.99   $ 44.67   $ 48.12   $ 52.34   $ 54.07

Low

    35.86     36.30     35.04     36.38     40.24     42.05     45.32     46.59

End of period

    36.95     39.36     37.72     36.75     41.17     42.98     47.30     49.22

Price/earnings ratio (b)

    13.94     14.52     13.57     14.76     15.77     16.22     17.65     15.68

Supplemental Data

 

                 

Common dividends declared ($ in millions)

  $ 223   $ 211   $ 211   $ 210   $ 195   $ 194   $ 195   $ 180

Full-time equivalent employees

    21,230     21,497     21,681     21,674     21,594     21,287     19,659     19,061

Banking centers

    1,138     1,132     1,119     1,106     1,098     1,092     1,011     1,005

ATMs

    2,034     2,025     2,024     1,996     1,994     1,988     1,898     1,872

 

(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.

 

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Quarterly Data

 

     Three Months Ended
     June 30,
2006
  March 31,
2006
  December 31,
2005
  September 30,
2005
  June 30,
2005
  March 31,
2005
  December 31,
2004
    September 30,
2004

Income Statement ($ in millions)

                 

Interest income (FTE)

  $ 1,483   $ 1,405   $ 1,359   $ 1,291   $ 1,223   $ 1,153   $ 1,090     $ 1,052

Interest expense

    767     687     624     546     465     394     338       286

Net interest income (FTE)

    716     718     735     745     758     759     752       766

Provision for loan and lease losses

    71     78     134     69     60     67     65       26

Noninterest income:

                 

Electronic payment processing revenue

    211     196     204     190     183     171     175       155

Service charges on deposits

    135     126     133     137     132     121     126       134

Mortgage banking net revenue

    41     47     42     45     46     41     24       49

Investment advisory revenue

    96     91     87     89     92     90     83       89

Corporate banking revenue

    82     76     92     71     74     62     65       54

Other noninterest income

    76     80     77     82     93     108     84       114

Securities gains (losses), net

    14     1     1     8     15     14     (78 )     16

Total noninterest income

    655     617     636     622     635     607     479       611

Noninterest expense:

                 

Salaries, wages and incentives

    303     284     287     285     295     265     266       252

Employee benefits

    69     87     65     70     67     82     56       64

Equipment expense

    29     27     29     26     25     25     23       22

Net occupancy expense

    59     58     59     54     54     54     48       45

Deposit insurance expense

    2     2     2     2     2     2     2       2

Other noninterest expense

    297     273     321     295     285     277     540       263

Total noninterest expense

    759     731     763     732     728     705     935       648

Income before income taxes and cumulative effect (FTE)

    541     526     474     566     605     594     231       703

Taxable equivalent adjustment

    6     7     7     8     8     8     9       9

Income before income taxes and cumulative effect

    535     519     467     558     597     586     222       694

Applicable income taxes

    153     160     135     163     180     181     46       223

Income before cumulative effect

    382     359     332     395     417     405     176       471

Cumulative effect of change in accounting principle, net of tax

    -       4     -       -       -       -       -         -  

Net income

  $ 382   $ 363   $ 332   $ 395   $ 417   $ 405   $ 176     $ 471

Net income available to common shareholders (a)

  $ 382   $ 363   $ 332   $ 395   $ 417   $ 404   $ 176     $ 471

Regulatory Capital Data ($ in millions) (b)

                 

Tier I capital

  $ 8,624   $ 8,434   $ 8,209   $ 8,030   $ 7,783   $ 7,509   $ 8,522     $ 8,666

Tier II capital

    1,958     1,966     2,031     2,016     2,131     2,125     1,654       1,674

Total risk-based capital

  $ 10,582   $ 10,400   $ 10,240   $ 10,046   $ 9,914   $ 9,634   $ 10,176     $ 10,340

Risk-weighted assets

  $ 101,082   $ 99,368   $ 97,994   $ 95,083   $ 91,791   $ 89,401   $ 82,633     $ 80,749

Tier I capital ratio

    8.53%     8.49%     8.38%     8.45%     8.48%     8.40%     10.31%       10.73%

Total risk-based capital ratio

    10.47%     10.47%     10.45%     10.57%     10.80%     10.78%     12.31%       12.81%

Tier I leverage ratio

    8.35%     8.24%     8.08%     7.93%     7.76%     7.62%     8.89%       9.13%

 

(a) Dividends on preferred stock are $.185 million for all quarters presented.
(b) June 30, 2006 regulatory capital data and ratios are estimated.

 

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Quarterly Data

 

     As of  
    

June 30,

2006

    March 31,
2006
    December 31,
2005
    September 30,
2005
   

June 30,

2005

    March 31,
2005
    December 31,
2004
    September 30,
2004
 

Balance Sheet ($ in millions, except share data)

                 

Assets

                 

Cash and due from banks

  $ 2,670     $ 2,494     $ 3,078     $ 3,372     $ 2,781     $ 2,420     $ 2,561     $ 2,313  

Available-for-sale and other securities

    20,345       21,276       21,924       22,537       24,647       25,101       24,687       31,557  

Held-to-maturity securities

    358       365       389       332       307       303       255       254  

Trading securities

    173       156       117       105       84       128       77       81  

Other short-term investments

    207       159       158       113       113       1,213       532       384  

Total cash and securities

    23,753       24,450       25,666       26,459       27,932       29,165       28,112       34,589  

Loans held for sale

    931       744       1,304       1,237       783       809       559       452  

Portfolio loans and leases

    72,577       71,422       69,925       68,754       66,296       64,902       59,808       58,036  

Total loans and leases

    73,508       72,166       71,229       69,991       67,079       65,711       60,367       58,488  

Allowance for loan and lease losses

    (753 )     (749 )     (744 )     (727 )     (722 )     (717 )     (713 )     (713 )

Bank premises and equipment

    1,853       1,798       1,726       1,643       1,581       1,529       1,315       1,233  

Operating lease equipment

    150       137       143       159       161       224       304       394  

Goodwill

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

Intangible assets

    185       189       208       220       231       243       150       157  

Servicing rights

    489       468       441       417       378       378       352       349  

Other real estate owned

    69       68       54       52       52       60       63       61  

Other assets

    4,663       4,323       4,333       4,218       4,290       3,953       3,527       2,827  

Total assets

  $ 106,111     $ 105,044     $ 105,225     $ 104,608     $ 103,160     $ 102,713     $ 94,456     $ 98,365  

 

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Quarterly Data

 

     As of  
    

June 30,

2006

    March 31,
2006
    December 31,
2005
    September 30,
2005
   

June 30,

2005

    March 31,
2005
    December 31,
2004
    September 30,
2004
 

Liabilities

                 

Deposits:

                 

Demand

  $ 14,078     $ 14,134     $ 14,609     $ 14,294     $ 14,393     $ 13,960     $ 13,486     $ 12,886  

Interest checking

    16,788       17,511       18,282       18,169       18,811       19,722       19,481       19,362  

Savings

    12,061       11,902       11,276       10,437       9,653       9,711       8,310       8,307  

Money market

    6,505       6,399       6,129       5,855       4,732       4,777       4,321       4,264  

Other time

    10,627       10,105       9,313       8,867       8,513       8,017       6,837       6,569  

Certificates - $100,000 and over

    5,691       5,085       4,343       4,195       3,986       3,867       2,121       2,092  

Foreign office

    4,773       3,874       3,482       3,678       3,089       5,257       3,670       3,380  

Total deposits

    70,523       69,010       67,434       65,495       63,177       65,311       58,226       56,860  

Federal funds purchased

    2,493       3,715       5,323       3,548       4,523       2,669       4,714       5,368  

Short-term bank notes

    -         -         -         -         -         775       775       1,275  

Other short-term borrowings

    5,275       4,472       4,246       6,075       4,972       4,925       4,537       7,330  

Other liabilities

    3,762       3,632       3,549       3,583       3,641       3,824       3,297       3,364  

Long-term debt

    14,502       14,746       15,227       16,522       17,494       16,321       13,983       15,128  

Total liabilities

    96,555       95,575       95,779       95,223       93,807       93,825       85,532       89,325  

Shareholders’ Equity

                 

Common and preferred equity

    11,411       11,274       11,138       11,038       10,762       10,569       10,507       10,515  

Additional minimum pension liability

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

Net unrealized gains (losses):

                 

Available-for-sale securities

    (670 )     (553 )     (395 )     (296 )     (107 )     (295 )     (72 )     (125 )

Qualifying cash flow hedges

    (8 )     (10 )     (13 )     (17 )     (24 )     (24 )     (33 )     (27 )

Treasury stock, at cost

    (1,172 )     (1,237 )     (1,279 )     (1,336 )     (1,274 )     (1,358 )     (1,414 )     (1,257 )

Total shareholders’ equity

  $ 9,556     $ 9,469     $ 9,446     $ 9,385     $ 9,353     $ 8,888     $ 8,924     $ 9,040  

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

    557,894,188       556,500,991       555,623,430       554,400,091       555,938,071       554,054,749       557,648,989       561,112,890  

Treasury shares held

    25,532,916       26,926,113       27,803,674       29,027,013       27,489,033       29,372,355       25,802,702       22,338,801  

 

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Quarterly Data

 

     Three Months Ended  
     June 30,
2006
    March 31,
2006
    December 31,
2005
    September 30,
2005
    June 30,
2005
    March 31,
2005
    December 31,
2004
    September 30,
2004
 

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

                 

Assets

                 

Interest-earning assets:

                 

Loans and leases

  $ 73,093     $ 71,634     $ 70,489     $ 68,556     $ 66,762     $ 65,076     $ 59,440     $ 57,679  

Taxable securities

    21,642       22,116       22,376       24,013       24,771       24,935       28,379       30,241  

Tax exempt securities

    616       644       698       787       815       856       866       890  

Other short-term investments

    181       157       200       115       130       328       480       282  

Total interest-earning assets

    95,532       94,551       93,763       93,471       92,478       91,195       89,165       89,092  

Cash and due from banks

    2,564       2,668       2,847       2,742       2,822       2,619       2,445       2,265  

Other assets

    8,393       8,261       8,105       8,207       8,182       7,909       6,171       5,603  

Allowance for loan and lease losses

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

Total assets

  $ 105,741     $ 104,736     $ 103,988     $ 103,699     $ 102,765     $ 101,009     $ 97,062     $ 96,212  

Liabilities

                 

Interest-bearing liabilities:

                 

Interest checking

  $ 17,025     $ 17,603     $ 17,828     $ 18,498     $ 19,267     $ 19,972     $ 19,345     $ 19,570  

Savings

    12,064       11,588       11,036       9,939       9,697       9,339       8,447       8,212  

Money market

    6,429       6,086       5,974       5,154       4,755       4,786       4,227       3,542  

Other time

    10,449       9,749       9,143       8,730       8,286       7,787       6,681       6,539  

Certificates - $100,000 and over

    5,316       4,670       4,354       4,156       3,946       3,539       2,106       2,459  

Foreign office

    4,382       4,050       3,703       3,925       3,907       4,340       4,073       3,315  

Federal funds purchased

    3,886       4,553       4,771       4,001       3,952       4,170       4,880       4,847  

Short-term bank notes

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

Other short-term borrowings

    4,854       4,718       4,408       5,619       5,190       4,933       5,140       7,152  

Long-term debt

    14,465       15,132       15,956       16,914       17,049       15,604       15,585       15,055  

Total interest-bearing liabilities

    78,870       78,149       77,173       76,936       76,279       75,245       71,672       71,966  

Demand deposits

    13,764       13,674       14,099       13,977       13,905       13,484       13,107       12,537  

Other liabilities

    3,500       3,312       3,236       3,335       3,357       3,172       3,054       2,848  

Total liabilities

    96,134       95,135       94,508       94,248       93,541       91,901       87,833       87,351  

Shareholders’ equity

    9,607       9,601       9,480       9,451       9,224       9,108       9,229       8,861  

Total liabilities & shareholders’ equity

  $ 105,741     $ 104,736     $ 103,988     $ 103,699     $ 102,765     $ 101,009     $ 97,062     $ 96,212  

Average loans and leases (excluding held for sale)

  $ 72,209     $ 70,603     $ 69,218     $ 67,539     $ 65,649     $ 64,269     $ 58,714     $ 57,160  

Average common shares outstanding:

                 

Basic

    554,977,557       554,397,914       553,590,943       553,854,684       553,871,720       556,361,533       560,161,550       560,335,242  

Diluted

    557,489,491       556,868,587       556,321,949       557,681,044       558,176,454       561,658,848       566,107,746       566,543,043  

 

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Quarterly Data

 

     Three Months Ended
     June 30,
2006
  March 31,
2006
  December 31,
2005
  September 30,
2005
  June 30,
2005
  March 31,
2005
  December 31,
2004
  September 30,
2004

Asset Quality ($ in millions)

                 

Nonaccrual loans and leases

  $ 281   $ 291   $ 294   $ 285   $ 273   $ 268   $ 228   $ 207

Renegotiated loans and leases

    -       -       -       1     1     1     1     3

Other assets, including other real estate owned

    77     73     67     65     66     74     74     72

Total nonperforming assets

  $ 358   $ 364   $ 361   $ 351   $ 340   $ 343   $ 303   $ 282

Ninety days past due loans and leases

  $ 191   $ 160   $ 155   $ 156   $ 129   $ 129   $ 142   $ 137

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

                 

Commercial:

                 

Commercial loans

  $ 20,618   $ 19,879   $ 19,299   $ 18,596   $ 18,017   $ 17,501   $ 16,058   $ 15,271

Commercial mortgage

    9,792     9,861     9,188     9,138     9,091     9,048     7,636     7,644

Commercial construction

    5,950     5,883     6,342     5,880     5,590     5,365     4,348     4,077

Commercial leases

    3,740     3,726     3,698     3,619     3,537     3,416     3,426     3,357

Subtotal - commercial

    40,100     39,349     38,527     37,233     36,235     35,330     31,468     30,349

Consumer:

                 

Residential mortgage

    8,780     8,405     8,296     8,564     7,808     8,208     7,533     6,912

Residential construction

    748     717     695     649     611     557     378     371

Credit card

    945     851     866     805     749     790     843     809

Home equity

    12,277     12,087     12,000     11,766     11,521     11,085     10,508     10,243

Other consumer loans

    9,360     9,318     9,250     9,236     8,343     7,840     7,586     7,595

Consumer leases

    1,298     1,439     1,595     1,738     1,812     1,901     2,051     2,209

Subtotal - consumer

    33,408     32,817     32,702     32,758     30,844     30,381     28,899     28,139

Total loans and leases

  $ 73,508   $ 72,166   $ 71,229   $ 69,991   $ 67,079   $ 65,711   $ 60,367   $ 58,488

 

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LOGO

Quarterly Data

 

     Three Months Ended  
     June 30,
2006
    March 31,
2006
    December 31,
2005
    September 30,
2005
    June 30,
2005
    March 31,
2005
    December 31,
2004
    September 30,
2004
 

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

                 

Commercial:

                 

Commercial loans

  $ 20,239     $ 19,461     $ 18,909     $ 18,203     $ 17,768     $ 18,073     $ 15,565     $ 15,068  

Commercial mortgage

    9,980       9,441       9,159       9,095       9,042       8,385       7,617       7,582  

Commercial construction

    5,840       6,211       6,051       5,700       5,467       4,870       4,247       3,963  

Commercial leases

    3,729       3,686       3,611       3,537       3,436       3,393       3,333       3,300  

Subtotal - commercial

    39,788       38,799       37,730       36,535       35,713       34,721       30,762       29,913  

Consumer:

                 

Residential mortgage

    8,756       8,351       8,444       8,271       8,453       8,417       7,346       6,631  

Residential construction

    735       706       673       624       576       468       378       352  

Credit card

    897       855       825       778       755       830       827       797  

Home equity

    12,193       12,072       11,884       11,702       11,325       10,909       10,403       10,056  

Other consumer loans

    9,340       9,311       9,251       8,868       8,089       7,752       7,592       7,651  

Consumer leases

    1,384       1,540       1,682       1,778       1,851       1,979       2,132       2,279  

Subtotal - consumer

    33,305       32,835       32,759       32,021       31,049       30,355       28,678       27,766  

Total average loans and leases

  $ 73,093     $ 71,634     $ 70,489     $ 68,556     $ 66,762     $ 65,076     $ 59,440     $ 57,679  

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

                 

Commercial construction loans

  $ 18     $ 20     $ 31     $ 29     $ 24     $ 23     $ 13     $ 11  

Commercial mortgage

    62       74       51       53       56       56       51       51  

Commercial loans and leases

    129       126       146       140       132       132       111       99  

Consumer mortgage and construction

    34       34       30       31       25       24       24       22  

Other consumer loans and leases

    38       37       36       33       37       34       30       27  

Total nonperforming loans

  $ 281     $ 291     $ 294     $ 286     $ 274     $ 269     $ 229     $ 210  

Credit Charge-Offs ($ in millions)

                 

Gross charge-offs

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

Recoveries

    29       23       20       15       21       17       19       15  

Net losses charged off

  $ (67 )   $ (73 )   $ (117 )   $ (64 )   $ (55 )   $ (63 )   $ (65 )   $ (57 )

 

8