EX-99.3 4 dex993.htm ANNUAL FINANCIAL SUPPLEMENT Annual Financial Supplement
     January 2007
  LOGO    Exhibit 99.3
  ANNUAL 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 year-end information.

If you need further information, please fax or e-mail your request to Fifth Third’s Investor Relations Department at (513) 534-3945 or Jeff.Richardson@53.com

 

Jeff Richardson    Jim Eglseder
SVP/Investor Relations    AVP/Investor Relations
(513) 534-0983    (513) 534-8424

 

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Yearly Data

 

     Years Ended December 31,
     2006    2005    2004    2003    2002

Ratios (percent)

              

Return on average assets

     1.13      1.50      1.61      1.90      2.04

Return on average equity

     12.1      16.6      17.2      19.0      18.4

Average equity as a percent of average assets

     9.32      9.06      9.34      10.01      11.08

Net interest margin (c)

     3.06      3.23      3.48      3.62      3.96

Efficiency (c)

     60.5      53.2      53.9      47.0      47.5

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

     0.44      0.45      0.45      0.63      0.43

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

     1.04      1.06      1.19      1.33      1.49

Allowance for credit losses as a percent of loans and leases (a)

     1.14      1.16      1.31      1.47      1.49

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

     0.61      0.52      0.51      0.61      0.59

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

     169.62      206.03      235.32      218.85      250.62

Allowance for credit losses as a percent of nonperforming assets (a)

     186.33      225.33      259.05      242.01      250.62

Common Share Data

              

Earnings per share

   $ 2.14    $ 2.79    $ 2.72    $ 2.91    $ 2.64

Earnings per diluted share

     2.13      2.77      2.68      2.87      2.59

Cash dividends per common share

     1.59      1.46      1.31      1.13      0.98

Book value per share

     18.02      17.00      16.00      15.29      14.98

Common shares outstanding, excluding treasury

     556,252,674      555,623,430      557,648,989      566,685,301      574,355,247

Market price per share:

              

High

   $ 41.57    $ 48.12    $ 60.00    $ 62.15    $ 69.70

Low

     35.86      35.04      45.32      47.05      55.26

Close

     40.93      37.72      47.30      59.10      58.55

Price/earnings ratio (b)

     19.13      13.57      17.65      20.59      22.61

Supplemental Data

              

Common dividends declared ($ in millions)

   $ 880    $ 810    $ 735    $ 645    $ 568

Full-time equivalent employees

     21,362      21,681      19,659      18,899      19,119

Banking centers

     1,150      1,119      1,011      952      930

(a) As of December 31, 2004, the reserve for unfunded commitments has been reclassified from the allowance for loan and lease losses to other liabilities. The 2003 year end reserve for unfunded commitments has been reclassified to conform to the current presentation. The allowance for credit losses is the sum of the allowance for loan and lease losses and the reserve for unfunded commitments.
(b) Based on the most recent twelve-month earnings per diluted share and end of period stock prices.
(c) Presented on a fully taxable equivalent basis (“FTE”).

 

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Yearly Data

 

     Years Ended December 31,  
     2006     2005     2004     2003     2002  

Income Statement ($ in millions)

          

Interest income (FTE)

   $ 5,981     $ 5,026     $ 4,150     $ 4,030     $ 4,168  

Interest expense

     3,082       2,030       1,102       1,086       1,430  
                                        

Net interest income (FTE)

     2,899       2,996       3,048       2,944       2,738  

Provision for loan and lease losses

     343       330       268       399       246  

Noninterest income:

          

Electronic payment processing revenue

     857       748       631       593       528  

Service charges on deposits

     517       522       515       485       431  

Mortgage banking net revenue

     155       174       178       302       188  

Investment advisory revenue

     367       358       363       335       325  

Corporate banking revenue

     318       299       228       241       195  

Other noninterest income

     300       360       587       443       369  

Securities gains (losses), net

     (364 )     39       (37 )     81       114  

Securities gains, net - non-qualifying hedges on mortgage servicing rights

     3       —         —         3       33  
                                        

Total noninterest income

     2,153       2,500       2,465       2,483       2,183  

Noninterest expense:

          

Salaries, incentives and benefits expense

     1,466       1,416       1,279       1,271       1,230  

Equipment expense

     122       105       84       82       79  

Net occupancy expense

     245       221       185       159       142  

Deposit insurance expense

     9       8       15       17       10  

Operating lease expense

     18       40       114       94       —    

Other noninterest expense

     1,196       1,137       1,295       928       876  
                                        

Total noninterest expense

     3,056       2,927       2,972       2,551       2,337  
                                        

Income from continuing operations before income taxes, minority interest and cumulative effect (FTE)

     1,653       2,239       2,273       2,477       2,338  

Taxable equivalent adjustment

     26       31       36       39       39  
                                        

Income from continuing operations before income taxes, minority interest and cumulative effect

     1,627       2,208       2,237       2,438       2,299  

Applicable income taxes

     443       659       712       786       734  
                                        

Income from continuing operations before minority interest and cumulative effect

     1,184       1,549       1,525       1,652       1,565  

Minority interest, net of tax

     —         —         —         (20 )     (38 )
                                        

Income from continuing operations before cumulative effect

     1,184       1,549       1,525       1,632       1,527  

Income from discontinued operations, net of tax (a)

     —         —         —         44       4  
                                        

Income before cumulative effect

     1,184       1,549       1,525       1,676       1,531  

Cumulative effect of change in accounting principle, net of tax

     4       —         —         (11 )     —    
                                        

Net income

   $ 1,188     $ 1,549     $ 1,525     $ 1,665     $ 1,531  
                                        

Net income available to common shareholders (b)

   $ 1,188     $ 1,548     $ 1,524     $ 1,664     $ 1,530  
                                        

Regulatory Capital Data ($ in millions) (c)

          

Tier I capital

   $ 8,622     $ 8,209     $ 8,522     $ 8,168     $ 7,656  

Tier II capital

     2,760       2,031       1,654       1,824       1,188  
                                        

Total risk-based capital

   $ 11,382     $ 10,240     $ 10,176     $ 9,992     $ 8,844  
                                        

Total risk-weighted assets

   $ 103,124     $ 98,293     $ 82,633     $ 74,477     $ 65,444  
                                        

Tier I capital ratio

     8.36 %     8.35 %     10.31 %     10.97 %     11.70 %

Total risk-based capital ratio

     11.04 %     10.42 %     12.31 %     13.42 %     13.51 %

Tier I leverage ratio

     8.44 %     8.08 %     8.89 %     9.11 %     9.73 %

(a) Includes gain on sale of discontinued operations of $40 million, net of tax, in 2003.
(b) Dividends on preferred stock are $.740 million for all years presented.
(c) 2006 regulatory capital data and ratios are estimated.

 

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Yearly Data

 

     As of December 31,  
     2006     2005     2004     2003     2002  

Balance Sheet ($ in millions, except share data)

          

Assets

          

Cash and due from banks

   $ 2,737     $ 3,078     $ 2,561     $ 2,359     $ 1,891  

Available-for-sale securities

     11,053       21,924       24,687       28,999       25,464  

Held-to-maturity securities

     356       389       255       135       52  

Trading securities

     187       117       77       55       18  

Other short-term investments

     809       158       532       268       294  
                                        

Total cash and securities

     15,142       25,666       28,112       31,816       27,719  

Loans held for sale

     1,150       1,304       559       1,881       3,358  

Portfolio loans and leases

     74,353       69,925       59,808       52,308       45,928  
                                        

Total loans and leases

     75,503       71,229       60,367       54,189       49,286  

Allowance for loan and lease losses

     (771 )     (744 )     (713 )     (697 )     (683 )

Operating lease equipment

     202       143       304       767       —    

Goodwill

     2,193       2,169       979       738       740  

Intangible assets

     166       208       150       195       236  

Servicing rights

     524       441       352       299       263  

Other real estate owned

     88       54       63       55       27  

Other assets

     7,622       6,059       4,842       3,892       3,344  
                                        

Total assets

   $ 100,669     $ 105,225     $ 94,456     $ 91,254     $ 80,932  
                                        

Liabilities

          

Deposits:

          

Demand

   $ 14,331     $ 14,609     $ 13,486     $ 12,142     $ 10,095  

Interest checking

     15,993       18,282       19,481       19,757       17,878  

Savings

     13,181       11,276       8,310       7,375       10,056  

Money market

     6,584       6,129       4,321       3,201       1,044  

Other time

     10,987       9,313       6,837       6,201       7,638  

Certificates - $100,000 and over

     6,628       4,343       2,121       1,856       1,723  

Foreign office

     1,676       3,482       3,670       6,563       3,774  
                                        

Total deposits

     69,380       67,434       58,226       57,095       52,208  

Federal funds purchased

     1,421       5,323       4,714       6,928       4,748  

Short-term bank notes

     —         —         775       500       —    

Other short-term borrowings

     2,796       4,246       4,537       5,742       4,075  

Other liabilities

     4,492       3,549       3,297       3,259       2,657  

Long-term debt

     12,558       15,227       13,983       9,063       8,179  
                                        

Total liabilities

     90,647       95,779       85,532       82,587       71,867  
                                        

Minority interest

     —         —         —         —         461  
                                        

Shareholders’ Equity

          

Common and preferred equity

     11,433       11,138       10,507       9,749       8,779  

Additional minimum pension liability

     (59 )     (5 )     (64 )     (63 )     (52 )

Net unrealized (losses) gains on available-for-sale securities and qualifying cash flow hedges

     (120 )     (408 )     (105 )     (57 )     421  

Treasury stock, at cost

     (1,232 )     (1,279 )     (1,414 )     (962 )     (544 )
                                        

Total shareholders’ equity

   $ 10,022     $ 9,446     $ 8,924     $ 8,667     $ 8,604  
                                        

Share Data

          

Preferred shares outstanding

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

Common shares outstanding, excluding treasury

     556,252,674       555,623,430       557,648,989       566,685,301       574,355,247  

Treasury shares held

     27,174,430       27,803,674       25,802,702       16,766,390       9,071,857  

 

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Yearly Data

 

     Years Ended December 31,  
     2006     2005     2004     2003     2002  

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

          

Assets

          

Interest-earning assets:

          

Loans and leases

   $ 73,493     $ 67,737     $ 57,042     $ 52,414     $ 45,539  

Taxable securities

     20,306       24,017       29,365       27,584       22,145  

Tax exempt securities

     604       789       917       1,056       1,101  

Other short-term investments

     378       193       315       307       339  
                                        

Total interest-earning assets

     94,781       92,736       87,639       81,361       69,124  

Cash and due from banks

     2,495       2,758       2,216       1,600       1,551  

Other assets

     8,713       8,102       5,763       5,250       5,007  

Allowance for loan and lease losses

     (751 )     (720 )     (722 )     (730 )     (645 )
                                        

Total assets

   $ 105,238     $ 102,876     $ 94,896     $ 87,481     $ 75,037  
                                        

Liabilities

          

Interest-bearing liabilities:

          

Interest checking

   $ 16,650     $ 18,884     $ 19,434     $ 18,679     $ 16,239  

Savings

     12,189       10,007       7,941       8,020       9,465  

Money market

     6,366       5,170       3,473       3,189       1,162  

Other time

     10,500       8,491       6,208       6,426       8,855  

Certificates - $100,000 and over

     5,795       4,001       2,403       3,832       2,237  

Foreign office

     3,711       3,967       4,449       3,862       2,018  

Short-term borrowings

     8,670       9,511       13,539       12,373       7,191  

Long-term debt

     14,247       16,384       13,323       8,747       7,640  
                                        

Total interest-bearing liabilities

     78,128       76,415       70,770       65,128       54,807  

Demand deposits

     13,741       13,868       12,327       10,482       8,953  

Other liabilities

     3,558       3,276       2,939       2,883       2,520  
                                        

Total liabilities

     95,427       93,559       86,036       78,493       66,280  

Minority interest

     —         —         —         234       440  

Shareholders’ equity

     9,811       9,317       8,860       8,754       8,317  
                                        

Total liabilities & shareholders’ equity

   $ 105,238     $ 102,876     $ 94,896     $ 87,481     $ 75,037  
                                        

Average loans and leases (excluding held for sale)

   $ 72,447     $ 66,685     $ 55,951     $ 49,700     $ 43,529  

Average common shares outstanding:

          

Basic

     554,983,021       554,410,581       561,258,539       571,590,128       580,326,693  

Diluted

     557,493,607       558,442,819       568,234,313       580,003,074       592,020,246  

 

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Yearly Data

 

     Years Ended December 31,  
     2006     2005     2004     2003     2002  

Asset Quality ($ in millions)

          

Nonaccrual loans and leases

   $ 352     $ 294     $ 228     $ 242     $ 247  

Renegotiated loans and leases

     —         —         1       8       —    

Other assets, including other real estate owned

     103       67       74       69       26  
                                        

Total nonperforming assets

     455       361       303       319       273  

Ninety days past due loans and leases

     210       155       142       145       162  
                                        

Total underperforming assets

   $ 665     $ 516     $ 445     $ 464     $ 435  
                                        

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

          

Commercial:

          

Commercial loans

   $ 20,725     $ 19,299     $ 16,058     $ 14,226     $ 12,786  

Commercial mortgage

     10,405       9,188       7,636       6,894       5,885  

Commercial construction

     6,168       6,342       4,348       3,301       3,009  

Commercial leases

     3,841       3,698       3,426       3,264       3,019  
                                        

Subtotal - commercial

     41,139       38,527       31,468       27,685       24,699  

Consumer:

          

Consumer mortgage

     9,226       8,296       7,533       5,530       6,804  

Consumer construction

     679       695       378       335       319  

Credit card

     1,110       866       843       762       537  

Home equity

     12,365       12,000       10,508       8,993       8,675  

Other consumer loans

     9,911       9,250       7,586       8,436       5,909  

Consumer leases

     1,073       1,595       2,051       2,448       2,343  
                                        

Subtotal - consumer

     34,364       32,702       28,899       26,504       24,587  
                                        

Total loans and leases

   $ 75,503     $ 71,229     $ 60,367     $ 54,189     $ 49,286  
                                        

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

          

Commercial construction loans

   $ 54     $ 31     $ 13     $ 19     $ 14  

Commercial mortgage

     84       51       51       42       41  

Commercial loans and leases

     133       146       111       136       159  

Residential mortgage and construction

     38       30       24       26       18  

Other consumer loans and leases

     43       36       30       27       15  
                                        

Total nonperforming loans

   $ 352     $ 294     $ 229     $ 250     $ 247  
                                        

Credit Charge-Offs ($ in millions)

          

Gross charge-offs

   $ (408 )   $ (373 )   $ (321 )   $ (380 )   $ (273 )

Recoveries

     92       74       69       68       86  
                                        

Net losses charged off

   $ (316 )   $ (299 )   $ (252 )   $ (312 )   $ (187 )
                                        

 

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