UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): January 20, 2012
(Exact Name of Registrant as Specified in Its Charter)
OHIO
(State or Other Jurisdiction of Incorporation)
001-33653 | 31-0854434 | |
(Commission File Number) |
(IRS Employer Identification No.) | |
Fifth Third Center 38 Fountain Square Plaza, Cincinnati, Ohio |
45263 | |
(Address of Principal Executive Offices) | (Zip Code) |
(800) 972-3030
(Registrants Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
On January 20, 2012, Fifth Third Bancorp issued a press release and its quarterly and annual financial supplements announcing its earnings release for the fourth quarter of 2011. A copy of this press release, its quarterly financial supplement and annual financial supplement are attached as Exhibits 99.1, 99.3 and 99.4, respectively. This information is furnished under both Item 2.02 Results of Operations and Financial Condition and Item 7.01 Regulation FD Disclosure. The information in this Form 8-K and Exhibits attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference.
Item 7.01 | Regulation FD Disclosure |
On January 20, 2012, Fifth Third Bancorp issued a press release and its quarterly and annual financial supplements announcing its earnings release for the fourth quarter of 2011. A copy of this press release, its quarterly financial supplement and annual financial supplement are attached as Exhibits 99.1, 99.3 and 99.4, respectively. This information is furnished under both Item 2.02 Results of Operations and Financial Condition and Item 7.01 Regulation FD Disclosure. The information in this Form 8-K and Exhibits attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference.
For the benefit of its investors, Fifth Third Bancorp is furnishing information regarding its earnings conference call. A copy of this item is attached as Exhibit 99.2. The information in this Form 8-K and Exhibit attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference.
Item 9.01 | Financial Statements and Exhibits |
Exhibit 99.1 Press release dated January 20, 2012
Exhibit 99.2 Fourth Quarter Earnings Conference Call
Exhibit 99.3 Quarterly Financial Supplement
Exhibit 99.4 Annual Financial Supplement
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
FIFTH THIRD BANCORP | ||
(Registrant) | ||
January 20, 2012 |
/s/ Daniel T. Poston | |
Daniel T. Poston | ||
Executive Vice President and | ||
Chief Financial Officer |
Exhibit 99.1
News Release
CONTACTS: | Jim Eglseder (Investors) | FOR IMMEDIATE RELEASE | ||
(513) 534-8424 | January 20, 2012 | |||
Rich Rosen, CFA (Investors) | ||||
(513) 534-3307 | ||||
Debra DeCourcy, APR (Media) | ||||
(513) 534-4153 |
FIFTH THIRD BANCORP ANNOUNCES 2011 NET INCOME OF $1.3 BILLION
Fourth quarter net income of $314 million, earnings per diluted share of $0.33
| 4Q11 net income available to common shareholders of $305 million, or $0.33 per diluted common share, vs. $373 million, or $0.40 per share, in 3Q11 and $270 million, or $0.33 per share in 4Q10 |
| 4Q11 return on assets of 1.1% |
| 4Q11 return on average common equity of 9.5%; return on average tangible common equity* of 11.9% |
| Full year EPS of $1.18, up 87% compared with 2010; 2011 included $153 million, or $0.17 per share, of TARP discount accretion recorded in 1Q11 |
| Pre-provision net revenue (PPNR)* of $473 million reflected: |
| Net interest income (FTE) of $920 million, up 2% sequentially; net interest margin 3.67%; period end portfolio loans up 2% sequentially driven by 5% growth in C&I loans |
| Noninterest income of $550 million compared with $665 million in the prior quarter; decline largely due to $54 million charge to a swap liability related to our previous sale of class B Visa shares, about $30 million lower debit interchange revenue due to change in debit interchange regulations, $22 million lower mortgage banking revenue, and $21 million lower net investment securities gains |
| Noninterest expense of $993 million, up 5% sequentially, driven by a $14 million litigation reserve charge related to card association membership and higher compensation and benefits expense which included a $10 million sequential increase largely due to the impact of a higher stock price on long term equity awards, $6 million in pension settlement expense, and the effect of higher loan volumes |
| Credit trends remain favorable |
| 4Q11 net charge-offs of $239 million (1.19% of loans and leases), versus 3Q11 NCOs of $262 million and 4Q10 NCOs of $356 million; lowest NCO level since 4Q07; 4Q11 provision expense of $55 million compared with 3Q11 provision of $87 million and 4Q10 provision of $166 million |
| Loan loss allowance declined $184 million, similar to 3Q11 and 4Q10, due to improvement in credit results; allowance to loan ratio of 2.78%, 124% of nonperforming assets, 157% of nonperforming loans and leases, and 2.4 times 4Q11 annualized net charge-offs |
| Total nonperforming assets of $2.0 billion including held-for-sale declined $187 million or 9% sequentially; nonperforming assets excluding held-for-sale of $1.8 billion declined $128 million or 7%; lowest levels since 1Q08 |
| NPA ratio of 2.23% down 21 bps from 3Q11, NPL ratio of 1.76% down 17 bps from 3Q11; gross NPL inflows of $396 million down 5% sequentially |
| Total delinquencies (includes 30-89 days past dues and over 90 days past dues) down 13% sequentially |
| No direct European sovereign exposure; total exposure to European peripheral borrowers less than $0.2 billion; total exposure to European banks less than $0.2 billion** |
| Strong capital ratios; exceed fully phased-in Basel III proposed standards |
| Tier 1 common ratio 9.34%*, up 1 bp sequentially (pro forma*** ~9.7% on a fully-phased in Basel III-adjusted basis, estimated among highest of large cap U.S. banks) |
| Tier 1 capital ratio 11.91%, Total capital ratio 16.08%, Leverage ratio 11.10% |
| Tangible common equity ratio* of 8.68% excluding unrealized gains/losses; 9.04% including unrealized gains/losses |
| Book value per share of $13.92, tangible book value per share* of $11.25 |
| Tangible book value per share growth 2% from 3Q11, 13% from 4Q10 |
* | Non-GAAP measure; See Reg. G reconciliation on page 33 |
** | European includes non-Eurozone countries; European peripheral includes Greece, Ireland, Italy, Portugal, Spain |
*** | Current estimate (non-GAAP), subject to final rule-making and clarification by U.S. banking regulators; currently assumes unrealized securities gains are included in common equity for purposes of this calculation |
Fifth Third Bancorp (Nasdaq: FITB) today reported full year 2011 net income of $1.3 billion, compared with net income of $753 million in 2010. After preferred dividends, 2011 net income available to common shareholders was $1.1 billion, or $1.18 per diluted share, compared with 2010 net income available to common shareholders of $503 million, or $0.63 per diluted share. Preferred dividends in the first quarter of 2011 included $153 million, or $0.17 per diluted share, of discount accretion primarily related to the repayment of TARP preferred stock, as well as $15 million, or $0.02 per diluted share, of contractual dividend payments on the TARP preferred stock. TARP preferred dividends in 2010 were $215 million, or $0.27 per diluted share, including $170 million of contractual dividend payments and $45 million of discount accretion.
Fourth quarter 2011 net income was $314 million, compared with net income of $381 million in the third quarter of 2011 and net income of $333 million in the fourth quarter of 2010. After preferred dividends, fourth quarter 2011 net income available to common shareholders was $305 million or $0.33 per diluted share, compared with third quarter net income of $373 million or $0.40 per diluted share, and net income of $270 million or $0.33 per diluted share in the fourth quarter of 2010.
As previously announced, fourth quarter 2011 results included a $54 million pre-tax charge to noninterest income related to changes in the fair value of a swap liability that Fifth Third entered into in conjunction with its sale of Class B Visa shares in 2009 (compared with a $17 million charge in the third quarter of 2011 and a $5 million charge in the fourth quarter of 2010) and a $14 million charge in noninterest expense to increase litigation reserves associated with bankcard association membership. Fourth quarter 2011 results also included $10 million in positive valuation adjustments on Vantiv LLC puts and warrants compared with $3 million in positive valuation adjustments in both the third quarter of 2011 and the fourth quarter of 2010, and investment securities gains of $5 million compared with gains of $26 million in the third quarter of 2011 and gains of $21 million in the fourth quarter of 2010. Third quarter 2011 results also included $28 million of expense related to the termination of certain FHLB borrowings and hedging transactions. Fourth quarter 2010 results also included a $17 million charge related to the early extinguishment of $1.0 billion in FHLB borrowings.
2
Earnings Highlights
For the Three Months Ended | % Change | |||||||||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
Seq | Yr/Yr | ||||||||||||||||||||||
Earnings ($ in millions) |
||||||||||||||||||||||||||||
Net income attributable to Bancorp |
$ | 314 | $ | 381 | $ | 337 | $ | 265 | $ | 333 | (18 | %) | (6 | %) | ||||||||||||||
Net income available to common shareholders |
$ | 305 | $ | 373 | $ | 328 | $ | 88 | $ | 270 | (18 | %) | 13 | % | ||||||||||||||
Common Share Data |
||||||||||||||||||||||||||||
Earnings per share, basic |
0.33 | 0.41 | 0.36 | 0.10 | 0.34 | (20 | %) | (3 | %) | |||||||||||||||||||
Earnings per share, diluted |
0.33 | 0.40 | 0.35 | 0.10 | 0.33 | (18 | %) | | ||||||||||||||||||||
Cash dividends per common share |
0.08 | 0.08 | 0.06 | 0.06 | 0.01 | | 700 | % | ||||||||||||||||||||
Financial Ratios |
||||||||||||||||||||||||||||
Return on average assets |
1.08 | % | 1.34 | % | 1.22 | % | 0.97 | % | 1.18 | % | (19 | %) | (8 | %) | ||||||||||||||
Return on average common equity |
9.5 | 11.9 | 11.0 | 3.1 | 10.4 | (20 | %) | (9 | %) | |||||||||||||||||||
Return on average tangible common equity |
11.9 | 14.9 | 14.0 | 4.2 | 13.9 | (20 | %) | (14 | %) | |||||||||||||||||||
Tier I capital |
11.91 | 11.96 | 11.93 | 12.20 | 13.89 | | (14 | %) | ||||||||||||||||||||
Tier I common equity |
9.34 | 9.33 | 9.20 | 8.99 | 7.48 | | 25 | % | ||||||||||||||||||||
Net interest margin (a) |
3.67 | 3.65 | 3.62 | 3.71 | 3.75 | 1 | % | (2 | %) | |||||||||||||||||||
Efficiency (a) |
67.5 | 60.4 | 59.1 | 62.5 | 62.6 | 12 | % | 8 | % | |||||||||||||||||||
Common shares outstanding (in thousands) |
919,804 | 919,779 | 919,818 | 918,728 | 796,273 | | 16 | % | ||||||||||||||||||||
Average common shares outstanding (in thousands): |
||||||||||||||||||||||||||||
Basic |
914,997 | 914,947 | 914,601 | 880,830 | 791,072 | | 16 | % | ||||||||||||||||||||
Diluted |
956,349 | 955,490 | 955,478 | 894,841 | 836,225 | | 14 | % |
(a) | Presented on a fully taxable equivalent basis |
Fifth Thirds 2011 results clearly demonstrated continued improvement, with net income available to common shareholders more than doubling compared with last year, said Kevin T. Kabat, president and CEO of Fifth Third Bancorp. Were growing our loan portfolio, credit trends continued to improve, and we continue to maintain a strong capital position.
Throughout 2011, we have seen solid expansion of the loan portfolio through our lending activities, although demand remained relatively soft, with total loan growth of 5 percent from a year ago. The fourth quarter saw a significant pick-up in demand and loan growth, with end of period total loan growth of 2 percent, including 5 percent in C&I lending which continues to be a strength for us.
Growth in loans, along with continued runoff in excess CD balances, drove an expansion in net interest income and net interest margin, which were up sequentially by 2 percent and 2 basis points, respectively. Noninterest income trends reflected the impact of several fourth quarter developments, including the implementation of new debit interchange regulations, a charge related to our previous sale of Visa, Inc. shares, and lower mortgage banking revenue relative to last quarters strong results. Fourth quarter expenses were elevated due to a litigation reserve charge related to bankcard association membership and higher compensation expense, which included several unusual items as well as the impact of strong loan production volumes, particularly mortgages, on incentives and fulfillment costs.
Credit trends continued to be favorable, with net charge-offs down 9 percent sequentially to 1.19 percent of loans and leases, the lowest since 2007. Nonperforming assets (excluding held-for-sale) declined 7 percent sequentially, and delinquency trends remain consistent with pre-crisis levels.
3
While regulatory headwinds remain for the industry, as we look to 2012, we believe Fifth Third Bank is well-positioned to continue to outperform other banking competitors.
Income Statement Highlights
For the Three Months Ended | % Change | |||||||||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
Seq | Yr/Yr | ||||||||||||||||||||||
Condensed Statements of Income ($ in millions) |
||||||||||||||||||||||||||||
Net interest income (taxable equivalent) |
$ | 920 | $ | 902 | $ | 869 | $ | 884 | $ | 919 | 2 | % | | |||||||||||||||
Provision for loan and lease losses |
55 | 87 | 113 | 168 | 166 | (36 | %) | (67 | %) | |||||||||||||||||||
Total noninterest income |
550 | 665 | 656 | 584 | 656 | (17 | %) | (16 | %) | |||||||||||||||||||
Total noninterest expense |
993 | 946 | 901 | 918 | 987 | 5 | % | 1 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income before income taxes (taxable equivalent) |
422 | 534 | 511 | 382 | 422 | (21 | %) | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable equivalent adjustment |
4 | 4 | 5 | 5 | 5 | | (20 | %) | ||||||||||||||||||||
Applicable income taxes |
104 | 149 | 169 | 112 | 83 | (30 | %) | 25 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income |
314 | 381 | 337 | 265 | 334 | (18 | %) | (6 | %) | |||||||||||||||||||
Less: Net income attributable to noncontrolling interest |
| | | | 1 | | | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income attributable to Bancorp |
314 | 381 | 337 | 265 | 333 | (18 | %) | (6 | %) | |||||||||||||||||||
Dividends on preferred stock |
9 | 8 | 9 | 177 | 63 | 13 | % | (86 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income available to common shareholders |
305 | 373 | 328 | 88 | 270 | (18 | %) | 13 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Earnings per share, diluted |
$ | 0.33 | $ | 0.40 | $ | 0.35 | $ | 0.10 | $ | 0.33 | (18 | %) | | |||||||||||||||
Net Interest Income
|
||||||||||||||||||||||||||||
For the Three Months Ended | % Change | |||||||||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
Seq | Yr/Yr | ||||||||||||||||||||||
Interest Income ($ in millions) |
||||||||||||||||||||||||||||
Total interest income (taxable equivalent) |
$ | 1,061 | $ | 1,059 | $ | 1,050 | $ | 1,065 | $ | 1,109 | | (4 | %) | |||||||||||||||
Total interest expense |
141 | 157 | 181 | 181 | 190 | (10 | %) | (26 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income (taxable equivalent) |
$ | 920 | $ | 902 | $ | 869 | $ | 884 | $ | 919 | 2 | % | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Average Yield |
||||||||||||||||||||||||||||
Yield on interest-earning assets (taxable equivalent) |
4.23 | % | 4.28 | % | 4.37 | % | 4.47 | % | 4.52 | % | (1 | %) | (6 | %) | ||||||||||||||
Yield on interest-bearing liabilities |
0.79 | % | 0.86 | % | 1.00 | % | 1.02 | % | 1.04 | % | (8 | %) | (24 | %) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest rate spread (taxable equivalent) |
3.44 | % | 3.42 | % | 3.37 | % | 3.45 | % | 3.48 | % | 1 | % | (1 | %) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest margin (taxable equivalent) |
3.67 | % | 3. 65 | % | 3.62 | % | 3.71 | % | 3.75 | % | 1 | % | (2 | %) | ||||||||||||||
Average Balances ($ in millions) |
||||||||||||||||||||||||||||
Loans and leases, including held for sale |
$ | 82,278 | $ | 80,013 | $ | 79,153 | $ | 79,379 | $ | 79,148 | 3 | % | 4 | % | ||||||||||||||
Total securities and other short-term investments |
17,243 | 18,142 | 17,192 | 17,290 | 18,066 | (5 | %) | (5 | %) | |||||||||||||||||||
Total interest-earning assets |
99,521 | 98,155 | 96,345 | 96,669 | 97,214 | 1 | % | 2 | % | |||||||||||||||||||
Total interest-bearing liabilities |
71,467 | 72,473 | 72,503 | 72,372 | 72,657 | (1 | %) | (2 | %) | |||||||||||||||||||
Bancorp shareholders equity |
13,147 | 12,841 | 12,365 | 13,052 | 14,007 | 2 | % | (6 | %) |
Net interest income of $920 million on a fully taxable equivalent basis increased $18 million from the third quarter of 2011. Interest income increased $2 million and interest expense declined $16 million. Interest income results reflected a $12 million increase from loans and $10 million reduction from securities. Those trends were driven by loan growth, which more than offset the effect of lower securities balances, lower reinvestment rates on securities given the current interest rate environment, and lower yields on loans. Interest expense improvements were driven by lower deposit costs, including the $16 million impact of continued run-off of high-rate CDs and their replacement into lower yielding products, as well as the benefit from FHLB debt termination and swap redemptions in the third quarter of 2011. These effects were partially offset by increased expense as a result of hedge ineffectiveness in the fourth quarter of 2011 due to changes in the interest rate environment.
4
The net interest margin was 3.67 percent, an increase of 2 bps from 3.65 percent in the previous quarter. The increase reflected the net effect of the factors mentioned in the net interest income discussion, with net certificate of deposit (CD) runoff contributing approximately 7 bps to the margin and loan growth contributing 2 bps, while lower loan yields reduced the margin by approximately 5 bps while increased hedge ineffectiveness reduced the margin by 2 bps.
Compared with the fourth quarter of 2010, net interest income increased $1 million and the net interest margin decreased 8 bps, which was largely the result of lower loan and investment securities yields, partially offset by higher average loan balances, run-off in higher-priced CDs, and mix shift to lower cost deposit products.
Securities
Average securities and other short-term investments were $17.2 billion in the fourth quarter of 2011 compared with $18.1 billion in the previous quarter and $18.1 billion in the fourth quarter of 2010. The decline was related to lower reinvestment of portfolio cash flows and lower short-term investment balances due to the repayment of FHLB borrowings entered into during the debt ceiling crisis.
Loans
For the Three Months Ended | % Change | |||||||||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
Seq | Yr/Yr | ||||||||||||||||||||||
Average Portfolio Loans and Leases ($ in millions) |
||||||||||||||||||||||||||||
Commercial: |
||||||||||||||||||||||||||||
Commercial and industrial loans |
$ | 29,891 | $ | 28,777 | $ | 27,909 | $ | 27,331 | $ | 26,338 | 4 | % | 13 | % | ||||||||||||||
Commercial mortgage |
10,262 | 10,050 | 10,394 | 10,685 | 10,985 | 2 | % | (7 | %) | |||||||||||||||||||
Commercial construction |
1,132 | 1,752 | 1,918 | 2,030 | 2,171 | (35 | %) | (48 | %) | |||||||||||||||||||
Commercial leases |
3,351 | 3,300 | 3,349 | 3,364 | 3,314 | 2 | % | 1 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Subtotal - commercial loans and leases |
44,636 | 43,879 | 43,570 | 43,410 | 42,808 | 2 | % | 4 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Residential mortgage loans |
10,464 | 10,006 | 9,654 | 9,282 | 8,382 | 5 | % | 25 | % | |||||||||||||||||||
Home equity |
10,810 | 10,985 | 11,144 | 11,376 | 11,655 | (2 | %) | (7 | %) | |||||||||||||||||||
Automobile loans |
11,696 | 11,445 | 11,188 | 11,070 | 10,825 | 2 | % | 8 | % | |||||||||||||||||||
Credit card |
1,906 | 1,864 | 1,834 | 1,852 | 1,844 | 2 | % | 3 | % | |||||||||||||||||||
Other consumer loans and leases |
402 | 441 | 547 | 646 | 722 | (9 | %) | (44 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Subtotal - consumer loans and leases |
35,278 | 34,741 | 34,367 | 34,226 | 33,428 | 2 | % | 6 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total average loans and leases (excluding held for sale) |
$ | 79,914 | $ | 78,620 | $ | 77,937 | $ | 77,636 | $ | 76,236 | 2 | % | 5 | % | ||||||||||||||
Average loans held for sale |
2,364 | 1,393 | 1,216 | 1,743 | 2,912 | 70 | % | (19 | %) |
Average and end of period loan and lease balances (excluding loans held-for-sale) were up 2 percent sequentially and 5 percent from the fourth quarter of 2010.
Average commercial portfolio loan and lease balances were up $757 million sequentially, or 2 percent, and increased $1.8 billion, or 4 percent, from the fourth quarter of 2010. Average C&I loans increased 4 percent sequentially and 13 percent compared with the fourth quarter of 2010. Average commercial mortgage and commercial construction loan balances declined by a combined 3 percent sequentially and 13 percent from the same period the previous year, reflecting continued low customer demand and current underwriting standards. Commercial line usage, on an end of period basis, was 32 percent of committed lines in the fourth
5
quarter versus 33 percent in both the third quarter of 2011 and the fourth quarter of 2010. The decline was primarily due to an increase in committed lines accompanied with relatively stable usage.
Average consumer portfolio loan and lease balances were up $537 million sequentially, or 2 percent, and increased $1.9 billion, or 6 percent, from the fourth quarter of 2010. Average residential mortgage loans increased 5 percent sequentially, reflecting stronger originations during the quarter as rates remained at historically low levels, as well as the continued retention of certain branch originated shorter-term fixed-rate residential mortgages which totaled $476 million on an end of period basis in the fourth quarter. Compared with the fourth quarter of 2010, average residential mortgage loans increased 25 percent and reflected the previously mentioned retention of mortgages. Average auto loans increased 2 percent sequentially and 8 percent year-over-year as loan origination volumes more than offset pay-downs. The growth outlined above was partially offset by lower home equity loan balances, which declined 2 percent sequentially and 7 percent year-over-year due to lower demand and production.
Average loans held-for-sale of $2.4 billion increased $971 million from third quarter levels primarily due to the high level of mortgage refinancing activity during the quarter. Compared with the fourth quarter of 2010, average loans held-for-sale decreased $548 million due to the effect of elevated mortgage refinancing activity in 2010 in the fourth quarter 2010 mortgage loan warehouse.
Deposits
For the Three Months Ended | % Change | |||||||||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
Seq | Yr/Yr | ||||||||||||||||||||||
Average Deposits ($ in millions) |
||||||||||||||||||||||||||||
Demand deposits |
$ | 26,069 | $ | 23,677 | $ | 22,174 | $ | 21,582 | $ | 21,066 | 10 | % | 24 | % | ||||||||||||||
Interest checking |
19,263 | 18,322 | 18,701 | 18,539 | 17,578 | 5 | % | 10 | % | |||||||||||||||||||
Savings |
21,715 | 21,747 | 21,817 | 21,324 | 20,602 | | 5 | % | ||||||||||||||||||||
Money market |
5,255 | 5,213 | 5,009 | 5,136 | 4,985 | 1 | % | 5 | % | |||||||||||||||||||
Foreign office (a) |
3,325 | 3,255 | 3,805 | 3,580 | 3,733 | 2 | % | (11 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Subtotal - Transaction deposits |
75,627 | 72,214 | 71,506 | 70,161 | 67,964 | 5 | % | 11 | % | |||||||||||||||||||
Other time |
4,960 | 6,008 | 6,738 | 7,363 | 8,490 | (17 | %) | (42 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Subtotal - Core deposits |
80,587 | 78,222 | 78,244 | 77,524 | 76,454 | 3 | % | 5 | % | |||||||||||||||||||
Certificates - $100,000 and over |
3,085 | 3,376 | 3,955 | 4,226 | 4,858 | (9 | %) | (36 | %) | |||||||||||||||||||
Other |
16 | 7 | 2 | 1 | 9 | 147 | % | 92 | % | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total deposits |
$ | 83,688 | $ | 81,605 | $ | 82,201 | $ | 81,751 | $ | 81,321 | 3 | % | 3 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Includes commercial customer Eurodollar sweep balances for which the Bancorp pays rates comparable to other commercial deposit accounts. |
Average core deposits increased 3 percent sequentially and 5 percent from the fourth quarter of 2010, as transaction deposit growth was partially offset by continued runoff of other time deposits. Average transaction deposits, excluding other time deposits, increased 5 percent from the third quarter of 2011 primarily driven by higher demand deposit account (DDA) and interest checking balances. Year-over-year growth of 11 percent was driven by higher DDA, interest checking, savings, and money market account balances.
Retail average transaction deposits increased 3 percent sequentially and reflected higher DDA, interest checking, and money market account balances. Growth of 12 percent from the fourth quarter of 2010 reflected higher balances across all transaction deposit account categories. Consumer CDs included in core
6
deposits declined 17 percent sequentially and 42 percent year-over-year, driven by maturities of higher-rate CDs and customer reluctance to purchase longer CD maturities given the current low rate environment.
Commercial average transaction deposits increased 9 percent sequentially and 11 percent from the previous year driven by higher average account balances. Sequential growth reflected seasonally higher inflows to DDAs and interest checking during the quarter, partially offset by lower money market account balances. Year-over-year growth also reflected higher inflows to DDAs and interest checking, partially offset by lower foreign office deposits and money market account balances. Average public funds balances were $5.4 billion compared with $5.4 billion in the third quarter of 2011 and $5.1 billion in the fourth quarter of 2010.
Noninterest Income
For the Three Months Ended | % Change | |||||||||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
Seq | Yr/Yr | ||||||||||||||||||||||
Noninterest Income ($ in millions) |
||||||||||||||||||||||||||||
Service charges on deposits |
$ | 136 | $ | 134 | $ | 126 | $ | 124 | $ | 140 | 1 | % | (3 | %) | ||||||||||||||
Corporate banking revenue |
82 | 87 | 95 | 86 | 103 | (5 | %) | (20 | %) | |||||||||||||||||||
Mortgage banking net revenue |
156 | 178 | 162 | 102 | 149 | (12 | %) | 5 | % | |||||||||||||||||||
Investment advisory revenue |
90 | 92 | 95 | 98 | 93 | (2 | %) | (3 | %) | |||||||||||||||||||
Card and processing revenue |
60 | 78 | 89 | 80 | 81 | (24 | %) | (26 | %) | |||||||||||||||||||
Other noninterest income |
24 | 64 | 83 | 81 | 55 | (63 | %) | (57 | %) | |||||||||||||||||||
Securities gains, net |
5 | 26 | 6 | 8 | 21 | (81 | %) | (76 | %) | |||||||||||||||||||
Securities gains, net - non-qualifying hedgeson mortgage servicing rights |
(3 | ) | 6 | | 5 | 14 | NM | NM | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total noninterest income |
$ | 550 | $ | 665 | $ | 656 | $ | 584 | $ | 656 | (17 | %) | (16 | %) |
NM: Not Meaningful
Noninterest income of $550 million decreased $115 million sequentially, or 17 percent, and declined $106 million, or 16 percent, compared with year ago results. The sequential decline was primarily driven by lower mortgage banking net revenue, the impact of new debit interchange regulation on interchange revenue, lower net securities gains, and the effect of valuation adjustments on the Visa total return swap.
Fourth quarter 2011 noninterest income results included a $54 million charge related to the increase in fair value of the liability related to the total return swap entered into as part of the 2009 sale of Visa, Inc. Class B shares; this compares with a $17 million charge in the third quarter of 2011 and a $5 million charge in the fourth quarter of 2010. Fourth quarter 2011 results also included a $10 million positive valuation adjustment on warrants and puts related to the 2009 sale of a 51 percent interest in our processing business, compared with $3 million in positive valuation adjustments on these instruments in both the third quarter of 2011 and the fourth quarter of 2010. Excluding these items, as well as investment securities gains in all periods, noninterest income decreased $64 million, or 10 percent, from the previous quarter. On a year-over-year basis, noninterest income, excluding the items mentioned above, decreased $48 million, or 8 percent, primarily due to lower debit interchange revenue and mortgage banking revenue.
Service charges on deposits of $136 million increased 1 percent from the third quarter and decreased 3 percent compared with the same quarter last year. Retail service charges were flat sequentially. Compared
7
with the fourth quarter of 2010, retail service charges declined 7 percent largely due to the implementation of new overdraft regulations and overdraft policies. Commercial service charges increased 2 percent sequentially due to reductions in earnings credit rates and account growth and were consistent with results from a year ago.
Corporate banking revenue of $82 million decreased 5 percent from the third quarter of 2011 and decreased 20 percent from the same period last year. The sequential decline was primarily driven by lower foreign exchange, interest rate derivative, and lease related fees. The year-over-year decline was driven by these factors as well as strong syndication fees and institutional sales revenue results in the fourth quarter of 2010.
Mortgage banking net revenue was $156 million in the fourth quarter of 2011, a 12 percent decrease from the third quarter of 2011 and a 5 percent increase from the fourth quarter of 2010. Fourth quarter 2011 originations were $7.1 billion, compared with $4.5 billion in the previous quarter and $7.4 billion in the fourth quarter of 2010. Fourth quarter 2011 originations resulted in gains of $152 million on mortgages sold compared with gains of $119 million during the previous quarter and $158 million during the fourth quarter of 2010. Mortgage servicing fees this quarter were $58 million, compared with $59 million in both the third quarter of 2011 and the fourth quarter of 2010. Mortgage banking net revenue is also affected by net servicing asset value adjustments, which include mortgage servicing rights (MSR) amortization and MSR valuation adjustments (including mark-to-market adjustments on free-standing derivatives used to economically hedge the MSR portfolio). These net servicing asset valuation adjustments were negative $54 million in the fourth quarter of 2011 (reflecting MSR amortization of $47 million and MSR valuation adjustments of negative $7 million); net zero in the third quarter of 2011 (MSR amortization of $34 million and MSR valuation adjustments of positive $34 million); and negative $67 million in the fourth quarter of 2010 (MSR amortization of $47 million and MSR valuation adjustments of negative $20 million). The mortgage-servicing asset, net of the valuation reserve, was $681 million at year end on a servicing portfolio of $57 billion.
Net losses on securities held as non-qualifying hedges for the MSR portfolio were $3 million in the fourth quarter of 2011, compared with net gains of $6 million in the third quarter of 2011 and $14 million in the fourth quarter of 2010.
Investment advisory revenue of $90 million decreased 2 percent sequentially and 3 percent from the fourth quarter of 2010. Sequential and year-over-year declines were driven by lower securities and brokerage revenue, institutional trust fees, and mutual fund fees largely due to fluctuations in equity and bond markets, partially offset by higher private client service revenue due to increased production.
Card and processing revenue was $60 million in the fourth quarter of 2011, a decrease of 24 percent sequentially and 26 percent from the fourth quarter of 2010. The sequential and year-over-year declines were
8
driven by the approximately $30 million impact of the recently enacted debit interchange legislation, partially offset by increased transaction volumes and initial mitigation activity.
Other noninterest income totaled $24 million in the fourth quarter of 2011, compared with $64 million in the previous quarter and $55 million in the fourth quarter of 2010. Other noninterest income includes changes in income related to the valuation of the total return swap entered into as part of the 2009 sale of Visa, Inc. Class B shares, revenue from our equity interest in the processing business, and effects of the valuation of warrants and puts related to the processing business sale. For periods ending December 31, 2011, September 30, 2011, and December 31, 2010, reductions in income related to the Visa, Inc. total return swap were $54 million, $17 million, and $5 million, respectively; revenue from our processing business equity interest was $25 million, $17 million, and $8 million, respectively; and warrant/put valuation adjustments were a benefit of $10 million, $3 million, and $3 million, respectively. Excluding these items, other noninterest income decreased $18 million from the previous quarter and $6 million from the fourth quarter of 2010.
Net credit-related costs recognized in other noninterest income were $33 million in the fourth quarter of 2011 versus $25 million last quarter and $34 million in the fourth quarter of 2010. Fourth quarter 2011 results included $9 million of net gains on sales of commercial loans held-for-sale and $18 million of fair value charges on commercial loans held-for-sale, as well as $22 million of losses on other real estate owned (OREO). Third quarter 2011 results included $3 million of net gains on sales of commercial loans held-for-sale and $6 million of fair value charges on commercial loans held-for-sale, as well as $21 million of losses on OREO. Fourth quarter 2010 results included net losses of $21 million on the sale of loans held-for-sale, $35 million of fair value charges on commercial loans held-for-sale, and $19 million of losses on OREO.
Net gains on investment securities were $5 million in the fourth quarter of 2011, compared with investment securities gains of $26 million in the previous quarter and $21 million in the fourth quarter of 2010.
Noninterest Expense
For the Three Months Ended | % Change | |||||||||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
Seq | Yr/Yr | ||||||||||||||||||||||
Noninterest Expense ($ in millions) |
||||||||||||||||||||||||||||
Salaries, wages and incentives |
$ | 393 | $ | 369 | $ | 365 | $ | 351 | $ | 385 | 7 | % | 2 | % | ||||||||||||||
Employee benefits |
84 | 70 | 79 | 97 | 73 | 21 | % | 16 | % | |||||||||||||||||||
Net occupancy expense |
79 | 75 | 75 | 77 | 76 | 5 | % | 4 | % | |||||||||||||||||||
Technology and communications |
48 | 48 | 48 | 45 | 52 | | (8 | %) | ||||||||||||||||||||
Equipment expense |
27 | 28 | 28 | 29 | 32 | (3 | %) | (13 | %) | |||||||||||||||||||
Card and processing expense |
28 | 34 | 29 | 29 | 26 | (17 | %) | 9 | % | |||||||||||||||||||
Other noninterest expense |
334 | 322 | 277 | 290 | 343 | 4 | % | (3 | %) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total noninterest expense |
$ | 993 | $ | 946 | $ | 901 | $ | 918 | $ | 987 | 5 | % | 1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense of $993 million increased 5 percent from the third quarter of 2011 and increased 1 percent from the fourth quarter of 2010. Fourth quarter 2011 expenses included a $14 million addition to litigation reserves related to bankcard association membership and $5 million in other litigation reserve additions. Third quarter 2011 expenses included $28 million of costs related to the termination of certain
9
FHLB borrowings and hedging transactions. Fourth quarter 2010 included $17 million of expenses related to the termination of $1 billion in FHLB funding. Excluding these items, noninterest expense increased 6 percent from the third quarter of 2011 and was flat compared with the fourth quarter of 2010, driven by higher compensation and benefits expense, with the former driven by higher loan volume fulfillment costs and incentives, particularly mortgage, as well as the effect of a higher stock price on long term equity awards, and the latter driven by $6 million of annual pension settlement expense.
Credit costs related to problem assets recorded as noninterest expense totaled $44 million in the fourth quarter of 2011, compared with $45 million in the third quarter of 2011 and $52 million in the fourth quarter of 2010. Fourth quarter credit-related expenses included provisioning for mortgage repurchases of $18 million, compared with $19 million in the third quarter and $20 million a year ago. (Realized mortgage repurchase losses were $17 million in the fourth quarter of 2011, compared with $31 million last quarter and $23 million in the fourth quarter of 2010.) Provision for unfunded commitments was a benefit of $6 million in the current quarter, compared with a benefit of $10 million last quarter and a benefit of $4 million a year ago. Derivative valuation adjustments related to customer credit risk were a positive $5 million this quarter versus $4 million in expense last quarter and positive $1 million a year ago. OREO expense was $8 million this quarter, compared with $7 million last quarter and $11 million a year ago. Other problem asset-related expenses were $28 million in the fourth quarter, compared with $25 million the previous quarter and $27 million in the same period last year.
Credit Quality
For the Three Months Ended | ||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
||||||||||||||||
Total net losses charged off ($ in millions) |
||||||||||||||||||||
Commercial and industrial loans |
($ | 62 | ) | ($ | 55 | ) | ($ | 76 | ) | ($ | 83 | ) | ($ | 85 | ) | |||||
Commercial mortgage loans |
(47 | ) | (47 | ) | (47 | ) | (54 | ) | (80 | ) | ||||||||||
Commercial construction loans |
(4 | ) | (35 | ) | (20 | ) | (26 | ) | (11 | ) | ||||||||||
Commercial leases |
| 1 | 2 | (1 | ) | 3 | ||||||||||||||
Residential mortgage loans |
(36 | ) | (36 | ) | (36 | ) | (65 | ) | (62 | ) | ||||||||||
Home equity |
(50 | ) | (53 | ) | (54 | ) | (63 | ) | (65 | ) | ||||||||||
Automobile loans |
(13 | ) | (12 | ) | (8 | ) | (20 | ) | (19 | ) | ||||||||||
Credit card |
(21 | ) | (18 | ) | (28 | ) | (31 | ) | (33 | ) | ||||||||||
Other consumer loans and leases |
(6 | ) | (7 | ) | (37 | ) | (24 | ) | (4 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total net losses charged off |
(239 | ) | (262 | ) | (304 | ) | (367 | ) | (356 | ) | ||||||||||
Total losses |
(280 | ) | (294 | ) | (343 | ) | (397 | ) | (399 | ) | ||||||||||
Total recoveries |
41 | 32 | 39 | 30 | 43 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total net losses charged off |
($ | 239 | ) | ($ | 262 | ) | ($ | 304 | ) | ($ | 367 | ) | ($ | 356 | ) | |||||
Ratios (annualized) |
||||||||||||||||||||
Net losses charged off as a percent of average loans and leases (excluding held for sale) |
1.19 | % | 1.32 | % | 1.56 | % | 1.92 | % | 1.86 | % | ||||||||||
Commercial |
1.00 | % | 1.23 | % | 1.30 | % | 1.52 | % | 1.59 | % | ||||||||||
Consumer |
1.43 | % | 1.43 | % | 1.89 | % | 2.43 | % | 2.20 | % |
Net charge-offs were $239 million in the fourth quarter of 2011, or 119 bps of average loans on an annualized basis. Net charge-offs were 9 percent lower than third quarter 2011 net charge-offs of $262 million, and 33 percent lower than fourth quarter 2010 net charge-offs of $356 million.
10
Commercial net charge-offs were $113 million, or 100 bps, down $23 million versus $136 million, or 123 bps, in the third quarter. C&I net losses were $62 million compared with net losses of $55 million in the previous quarter. Commercial mortgage net losses totaled $47 million, unchanged from the third quarter. Commercial construction net losses were $4 million, compared with net losses of $35 million in the prior quarter. Net losses on residential builder and developer portfolio loans across the C&I and commercial real estate categories totaled $2 million. Originations of homebuilder / developer loans were suspended in 2007 and the remaining portfolio balance is $512 million, down from a peak of $3.3 billion in the second quarter of 2008.
Consumer net charge-offs were $126 million, or 143 bps, flat sequentially. Net charge-offs on residential mortgage loans in the portfolio were $36 million, unchanged from the previous quarter. Home equity net charge-offs were $50 million, versus $53 million in the third quarter. Net losses on brokered home equity loans represented 34 percent of third quarter home equity losses; such loans are 14 percent of the total home equity portfolio. The home equity portfolio included $1.5 billion of brokered loans, down from a peak of $2.6 billion in 2007; originations of these loans were discontinued in 2007. Net charge-offs in the auto portfolio of $13 million increased $1 million seasonally from the prior quarter. Net losses on consumer credit card loans were $21 million, up $3 million from the previous quarter. Net charge-offs in other consumer loans were $6 million, down $1 million from the previous quarter.
For the Three Months Ended | ||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
||||||||||||||||
Allowance for Credit Losses ($ in millions) |
||||||||||||||||||||
Allowance for loan and lease losses, beginning |
$ | 2,439 | $ | 2,614 | $ | 2,805 | $ | 3,004 | $ | 3,194 | ||||||||||
Total net losses charged off |
(239 | ) | (262 | ) | (304 | ) | (367 | ) | (356 | ) | ||||||||||
Provision for loan and lease losses |
55 | 87 | 113 | 168 | 166 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Allowance for loan and lease losses, ending |
2,255 | 2,439 | 2,614 | 2,805 | 3,004 | |||||||||||||||
Reserve for unfunded commitments, beginning |
187 | 197 | 211 | 227 | 231 | |||||||||||||||
Provision for unfunded commitments |
(6 | ) | (10 | ) | (14 | ) | (16 | ) | (4 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reserve for unfunded commitments, ending |
181 | 187 | 197 | 211 | 227 | |||||||||||||||
Components of allowance for credit losses: |
||||||||||||||||||||
Allowance for loan and lease losses |
2,255 | 2,439 | 2,614 | 2,805 | 3,004 | |||||||||||||||
Reserve for unfunded commitments |
181 | 187 | 197 | 211 | 227 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total allowance for credit losses |
$ | 2,436 | $ | 2,626 | $ | 2,811 | $ | 3,016 | $ | 3,231 | ||||||||||
Allowance for loan and lease losses ratio |
||||||||||||||||||||
As a percent of loans and leases |
2.78 | % | 3.08 | % | 3.35 | % | 3.62 | % | 3.88 | % | ||||||||||
As a percent of nonperforming loans and leases (a) |
157 | % | 158 | % | 160 | % | 170 | % | 179 | % | ||||||||||
As a percent of nonperforming assets (a) |
124 | % | 125 | % | 125 | % | 132 | % | 138 | % |
(a) | Excludes non accrual loans and leases in loans held for sale |
Provision for loan and lease losses totaled $55 million in the fourth quarter of 2011, down $32 million from the third quarter of 2011 and down $111 million from the fourth quarter of 2010. The allowance for loan and lease losses declined $184 million, reflecting continued improvement in credit trends, a similar reduction to that recorded in recent quarters. This allowance represented 2.78 percent of total loans and leases outstanding as of year end, compared with 3.08 percent last quarter, and represented 157 percent of nonperforming loans and leases, 124 percent of nonperforming assets, and 238 percent of third quarter annualized net charge-offs.
11
As of | ||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
||||||||||||||||
Nonperforming Assets and Delinquent Loans ($ in millions) |
||||||||||||||||||||
Nonaccrual portfolio loans and leases: |
||||||||||||||||||||
Commercial and industrial loans (a) |
$ | 408 | $ | 449 | $ | 485 | $ | 477 | $ | 473 | ||||||||||
Commercial mortgage loans |
358 | 353 | 417 | 415 | 407 | |||||||||||||||
Commercial construction loans |
123 | 151 | 147 | 159 | 182 | |||||||||||||||
Commercial leases |
9 | 13 | 16 | 11 | 11 | |||||||||||||||
Residential mortgage loans |
134 | 142 | 145 | 140 | 152 | |||||||||||||||
Home equity |
25 | 25 | 26 | 24 | 23 | |||||||||||||||
Automobile loans |
| | 1 | 1 | 1 | |||||||||||||||
Other consumer loans and leases (a) |
1 | 1 | 3 | 60 | 84 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonaccrual loans and leases |
$ | 1,058 | $ | 1,134 | $ | 1,240 | $ | 1,287 | $ | 1,333 | ||||||||||
Restructured loans and leases - commercial (nonaccrual) |
160 | 189 | 188 | 149 | 141 | |||||||||||||||
Restructured loans and leases - consumer (nonaccrual) |
220 | 215 | 211 | 209 | 206 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonperforming loans and leases |
$ | 1,438 | $ | 1,538 | $ | 1,639 | $ | 1,645 | $ | 1,680 | ||||||||||
Repossessed personal property |
14 | 17 | 15 | 20 | 27 | |||||||||||||||
Other real estate owned (b) |
364 | 389 | 434 | 461 | 467 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonperforming assets (c) |
$ | 1,816 | $ | 1,944 | $ | 2,088 | $ | 2,126 | $ | 2,174 | ||||||||||
Nonaccrual loans held for sale |
131 | 171 | 147 | 184 | 247 | |||||||||||||||
Restructured loans - commercial (nonaccrual) held for sale |
7 | 26 | 29 | 32 | 47 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonperforming assets including loans held for sale |
$ | 1,954 | $ | 2,141 | $ | 2,264 | $ | 2,342 | $ | 2,468 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Restructured Consumer loans and leases (accrual) |
$ | 1,612 | $ | 1,601 | $ | 1,593 | $ | 1,573 | $ | 1,560 | ||||||||||
Restructured Commercial loans and leases (accrual) |
$ | 390 | $ | 349 | $ | 266 | $ | 243 | $ | 228 | ||||||||||
Total loans and leases 90 days past due |
$ | 200 | $ | 274 | $ | 279 | $ | 266 | $ | 274 | ||||||||||
Nonperforming loans and leases as a percent of portfolio loans, leases and other assets, including other real estate owned (c) |
1.76 | % | 1.93 | % | 2.09 | % | 2.11 | % | 2.15 | % | ||||||||||
Nonperforming assets as a percent of portfolio loans, leases and other assets, including other real estate owned (c) |
2.23 | % | 2.44 | % | 2.66 | % | 2.73 | % | 2.79 | % |
(a) | Nonaccrual loans and leases at December 31, 2010 reflect a reclassification of $84 million in nonperforming loans from commercial and industrial loans to other consumer loans and leases which occurred after the Bancorp's Form 8-K was filed on January 19, 2011. This reclassification was primarily a result of the determination that consumer loans obtained in the foreclosure of a commercial loan were more appropriately categorized as other consumer loans and leases in accordance with regulatory guidelines. |
(b) | Excludes government insured advances. |
(c) | Does not include nonaccrual loans held-for-sale. |
Total nonperforming assets, including loans held-for-sale, were $2.0 billion, a decline of $187 million, or 9 percent, from the previous quarter. Nonperforming assets held-for-investment (NPAs) at year end were $1.8 billion or 2.23 percent of total loans, leases and OREO, and decreased $128 million, or 7 percent, from the previous quarter. Nonperforming loans held-for-investment (NPLs) at year end were $1.4 billion or 1.76 percent of total loans, leases and OREO, and decreased $100 million or 7 percent from the third quarter.
Commercial portfolio NPAs at year end were $1.3 billion, or 2.92 percent of commercial loans, leases and OREO, and decreased $136 million, or 9 percent, from the third quarter. Commercial portfolio NPLs were $1.1 billion, or 2.31 percent of commercial loans and leases, and decreased $96 million from last quarter. Commercial construction portfolio NPAs were $179 million, a decline of $58 million from the previous quarter. Commercial mortgage portfolio NPAs were $637 million, up $7 million from the prior quarter. Commercial real estate loans in Michigan and Florida represented 46 percent of commercial real estate NPAs and 38 percent of our total commercial real estate portfolio. C&I portfolio NPAs of $509 million decreased $79 million from the previous quarter. Within the overall commercial loan portfolio, residential real estate builder and developer portfolio NPAs of $155 million declined $52 million from the third quarter, of which $53 million were commercial construction assets, $88 million were commercial mortgage assets and $14 million were C&I assets. Commercial portfolio NPAs included $160 million of nonaccrual troubled debt restructurings (TDRs), compared with $189 million last quarter.
12
Consumer portfolio NPAs of $478 million, or 1.34 percent of consumer loans, leases and OREO, increased $8 million from the third quarter. Consumer portfolio NPLs were $379 million, or 1.06 percent of consumer loans and leases, and decreased $4 million from last quarter. Of consumer NPAs, $416 million were in residential real estate portfolios. Residential mortgage NPAs were $350 million, $13 million higher than last quarter, with Florida representing 45 percent of residential mortgage NPAs and 16 percent of total residential mortgage loans. Home equity NPAs of $66 million were down $4 million compared with last quarter. Credit card NPAs increased $2 million from the previous quarter to $48 million. Other consumer NPAs were $1 million. Consumer nonaccrual TDRs were $220 million in the fourth quarter of 2011, compared with $215 million in the third quarter.
Fourth quarter OREO balances included in portfolio NPA balances described above were $364 million, down $25 million from $389 million in the third quarter, and included $277 million in commercial OREO and $87 million in consumer OREO. Repossessed personal property of $14 million consisted largely of autos.
Loans still accruing over 90 days past due were $200 million, down $74 million, or 27 percent, from the third quarter of 2011. Commercial balances 90 days past due of $8 million decreased $55 million sequentially. Consumer balances 90 days past due of $192 million were down $19 million from the previous quarter. Loans 30-89 days past due of $452 million decreased $22 million, or 5 percent, from the previous quarter. Commercial balances 30-89 days past due of $98 million were down $37 million sequentially and consumer balances 30-89 days past due of $354 million increased $15 million from the third quarter.
At year-end, we held $138 million of commercial nonaccrual loans for sale, compared with $197 million at the end of the third quarter. During the quarter we sold approximately $31 million of non-accrual held-for-sale loans; we transferred approximately $3 million of non-accrual commercial loans from the portfolio to loans held-for-sale, and we transferred approximately $5 million of loans from loans held-for-sale to OREO. We recorded negative valuation adjustments of $18 million on held-for-sale loans and we recorded net gains of $8 million on loans that were sold or settled during the quarter.
13
Capital Position
For the Three Months Ended | ||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
||||||||||||||||
Capital Position | ||||||||||||||||||||
Average shareholders equity to average assets |
11.41 | % | 11.33 | % | 11.12 | % | 11.77 | % | 12.52 | % | ||||||||||
Tangible equity (a) |
9.03 | % | 8.98 | % | 9.01 | % | 8.76 | % | 10.42 | % | ||||||||||
Tangible common equity (excluding unrealized gains/losses) (a) |
8.68 | % | 8.63 | % | 8.64 | % | 8.39 | % | 7.04 | % | ||||||||||
Tangible common equity (including unrealized gains/losses) (a) |
9.04 | % | 9.04 | % | 8.96 | % | 8.60 | % | 7.30 | % | ||||||||||
Tangible common equity as a percent of risk-weighted assets (excluding unrealized gains/losses) (a) (b) |
9.41 | % | 9.39 | % | 9.28 | % | 9.09 | % | 7.56 | % | ||||||||||
Regulatory capital ratios: (c) |
||||||||||||||||||||
Tier I capital |
11.91 | % | 11.96 | % | 11.93 | % | 12.20 | % | 13.89 | % | ||||||||||
Total risk-based capital |
16.08 | % | 16.25 | % | 16.03 | % | 16.27 | % | 18.08 | % | ||||||||||
Tier I leverage |
11.10 | % | 11.08 | % | 11.03 | % | 11.21 | % | 12.79 | % | ||||||||||
Tier I common equity (a) |
9.34 | % | 9.33 | % | 9.20 | % | 8.99 | % | 7.48 | % | ||||||||||
Book value per share |
13.92 | 13.73 | 13.23 | 12.80 | 13.06 | |||||||||||||||
Tangible book value per share (a) |
11.25 | 11.05 | 10.55 | 10.11 | 9.94 |
(a) | The tangible equity, tangible common equity, tier I common equity and tangible book value per share ratios, while not required by accounting principles generally accepted in the United States of America (U.S. GAAP), are considered to be critical metrics with which to analyze banks. The ratios have been included herein to facilitate a greater understanding of the Bancorps capital structure and financial condition. See the Regulation G Non-GAAP Reconciliation table for a reconciliation of these ratios to U.S. GAAP. |
(b) | Under the banking agencies risk-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned to broad risk categories. The aggregate dollar amount in each risk category is multiplied by the associated risk weight of the category. The resulting weighted values are added together resulting in the Bancorps total risk weighted assets. |
(c) | Current period regulatory capital data ratios are estimated. |
Capital ratios remained strong during the quarter and reflected the effect of growth in retained earnings as well as in assets. Compared with the prior quarter, the Tier 1 common equity ratio* increased 1 bp to 9.34 percent. The tangible common equity to tangible assets ratio* was 8.68 percent (excluding unrealized gains/losses) and 9.04 percent (including unrealized gains/losses). The Tier 1 capital ratio decreased 5 bps to 11.91 percent and the Total capital ratio decreased 17 bps to 16.08 percent; and the Leverage ratio increased 2 bps to 11.10 percent. In addition to the effect of retained earnings and asset growth, the Tier 1, Total, and Leverage capital ratios also reflected the redemption of $25 million in TruPS during the quarter;
Book value per share at December 31, 2011 was $13.92 and tangible book value per share* was $11.25, compared with September 30, 2011 book value per share of $13.73 and tangible book value per share* of $11.05.
The Basel Committee has proposed new capital rules for Internationally Active banks, known as Basel III. Fifth Third is subject to U.S. bank regulations for capital, which have not yet been issued in response to the Basel proposals. Fifth Thirds capital levels exceed current U.S. well-capitalized standards and proposed Basel III capital standards, and we expect Fifth Thirds capital levels to continue to exceed U.S. well-capitalized standards including the adoption of U.S. rules that incorporate changes contemplated under Basel III and/or the Dodd-Frank Act.
* | Non-GAAP measure; See Reg. G reconciliation on page 33 |
14
Fifth Thirds Tier 1 and Total capital levels at December 31, 2011 included $2.2 billion of TruPS, or 2.1 percent of risk weighted assets. During the quarter, the Bancorp redeemed at par $25 million of its TruPS. Under the Dodd-Frank financial reform legislation, these TruPS are intended to be phased out of Tier 1 capital over three years beginning in 2013. The Basel Committee also issued proposals that would include a phase-out of these securities, although over a longer period. We will continue to evaluate the role of these types of securities in our capital structure, based on regulatory developments. To the extent these types of securities remain outstanding during and after the phase-in period, they would be expected to continue to be included in Total capital, subject to prevailing U.S. capital standards. The Basel Committee has also proposed adjustments to definitions of capital, including what is to be included in the definition of Tier 1 common, and to risk weightings applied to certain types of assets. We do not currently expect these proposed adjustments, if adopted into U.S. banking regulations, to negatively affect Fifth Thirds Tier 1 common capital levels and for any potentially positive effect to be modest.
Fifth Third is one of 31 large U.S. Bank Holding Companies (BHCs) subject to the Federal Reserves (FRB) Capital Plans Rule which was issued November 22, 2011. Under this rule, we are required to submit our annual capital plan to the Federal Reserve, for its objection or non-objection. Fifth Third submitted its capital plan on January 9, 2012, as required. The submitted plans included an evaluation of results under four required macroeconomic scenarios: a baseline and stress scenario determined by the firms, and a baseline and stress scenario provided by the Federal Reserve. As required, the plan also included those capital actions Fifth Third intends to pursue or contemplate during the period covered by the FRBs response, which is 2012 and the first quarter of 2013. Our plan for the covered period included the possibility that we would increase our common dividend and would initiate common share repurchases, although any such actions would be based on the FRBs non-objection, environmental conditions, earnings results, our capital position, and other factors, as well as approval by the Fifth Third Board of Directors, at the time. The Federal Reserve has indicated to the BHCs that it will issue its response on or before March 15, 2012. We expect to manage our capital structure over time including the components represented by common equity and non-common equity to adapt to and reflect the effect of legislation, changes in U.S. bank capital regulations that reflect international capital rules developments, regulatory expectations, and our goals for capital levels and capital composition as appropriate given any changes in rules.
Other
Fifth Third Bank owns a 49 percent interest in Vantiv, LLC, formerly Fifth Third Processing Solutions, LLC. (Advent International owns the remaining 51 percent interest.) The 49 percent interest is recorded on Fifth Thirds balance sheet as an equity method investment with a book value of $576 million. Additionally, Fifth Third has a warrant to purchase additional shares in Vantiv which is carried as a derivative asset at a fair market value of $111 million, and Advent has a contingent put option to sell shares in Vantiv to Fifth Third which is carried as a derivative liability at a fair market value of $1 million.
15
Conference Call
Fifth Third will host a conference call to discuss these financial results at 9:00 a.m. (Eastern Time) today. This conference call will be webcast live by Thomson Financial and may be accessed through the Fifth Third Investor Relations website at www.53.com (click on About Fifth Third then Investor Relations). The webcast also is being distributed over Thomson Financials Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson Financials individual investor center at www.earnings.com or by visiting any of the investor sites in Thomson Financials Individual Investor Network. Institutional investors can access the call via Thomson Financials password-protected event management site, StreetEvents (www.streetevents.com).
Those unable to listen to the live webcast may access a webcast replay or podcast through the Fifth Third Investor Relations website at the same web address. Additionally, a telephone replay of the conference call will be available beginning approximately two hours after the conference call until Friday, February 3rd by dialing 800-585-8367 for domestic access and 404-537-3406 for international access (passcode 32053529#).
Corporate Profile
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. As of December 31, 2011, the Company had $117 billion in assets and operated 15 affiliates with 1,316 full-service Banking Centers, including 104 Bank Mart® locations open seven days a week inside select grocery stores and 2,425 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Investment Advisors. Fifth Third also has a 49% interest in Vantiv, LLC, formerly Fifth Third Processing Solutions, LLC. Fifth Third is among the largest money managers in the Midwest and, as of December 31, 2011, had $282 billion in assets under care, of which it managed $24 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed at www.53.com. Fifth Thirds common stock is traded on the NASDAQ® National Global Select Market under the symbol FITB.
Forward-Looking Statements
This news release contains statements that we believe are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder. These statements relate to our financial condition, results of operations, plans, objectives, future performance or business. They usually can be identified by the use of forward-looking language such as will likely result, may, are expected to, is anticipated, estimate, forecast, projected, intends to, or may include other similar words or phrases such as believes, plans, trend, objective, continue, remain, or similar expressions, or future or conditional verbs such as will, would, should, could, might, can, or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including but not limited to the risk factors set forth in our most recent Annual Report on Form 10-K. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements we may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to us.
There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) general economic conditions and weakening in the economy, specifically the real estate market, either nationally or in the states in which Fifth Third, one or more acquired entities and/or the combined company do business, are less favorable than expected; (2) deteriorating credit quality; (3) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (4) changes in the interest rate environment reduce interest margins; (5) prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; (6) Fifth Thirds ability to maintain required capital levels and adequate sources of funding and liquidity; (7) maintaining capital requirements may limit Fifth Thirds operations and potential growth; (8) changes and trends in capital markets; (9) problems encountered by larger or similar financial institutions may adversely affect the banking industry and/or Fifth Third; (10) competitive
16
pressures among depository institutions increase significantly; (11) effects of critical accounting policies and judgments; (12) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board (FASB) or other regulatory agencies; (13) legislative or regulatory changes or actions, or significant litigation, adversely affect Fifth Third, one or more acquired entities and/or the combined company or the businesses in which Fifth Third, one or more acquired entities and/or the combined company are engaged, including the Dodd-Frank Wall Street Reform and Consumer Protection Act; (14) ability to maintain favorable ratings from rating agencies; (15) fluctuation of Fifth Thirds stock price; (16) ability to attract and retain key personnel; (17) ability to receive dividends from its subsidiaries; (18) potentially dilutive effect of future acquisitions on current shareholders ownership of Fifth Third; (19) effects of accounting or financial results of one or more acquired entities; (20) difficulties in separating Vantiv, LLC, formerly Fifth Third Processing Solutions from Fifth Third; (21) loss of income from any sale or potential sale of businesses that could have an adverse effect on Fifth Thirds earnings and future growth; (22) ability to secure confidential information through the use of computer systems and telecommunications networks; and (23) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity.
You should refer to our periodic and current reports filed with the Securities and Exchange Commission, or SEC, for further information on other factors, which could cause actual results to be significantly different from those expressed or implied by these forward-looking statements.
# # #
17
Quarterly Financial Review for December 31, 2011
Table of Contents
Financial Highlights |
19-20 | |||
Consolidated Statements of Income |
21 | |||
Consolidated Statements of Income (Taxable Equivalent) |
22 | |||
Consolidated Balance Sheets |
23-24 | |||
Consolidated Statements of Changes in Equity |
25 | |||
Average Balance Sheet and Yield Analysis |
26-28 | |||
Summary of Loans and Leases |
29 | |||
Regulatory Capital |
30 | |||
Summary of Credit Loss Experience |
31 | |||
Asset Quality |
32 | |||
Regulation G Non-GAAP Reconciliation |
33 | |||
Segment Presentation |
34 |
18
Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share data
(unaudited)
For the Three Months Ended | % Change | Year to Date | % Change | |||||||||||||||||||||||||||||
December 2011 |
September 2011 |
December 2010 |
Seq | Yr/Yr | December 2011 |
December 2010 |
Yr/Yr | |||||||||||||||||||||||||
Income Statement Data |
||||||||||||||||||||||||||||||||
Net interest income (a) |
$ | 920 | $ | 902 | $ | 919 | 2 | % | | $ | 3,575 | $ | 3,622 | (1 | %) | |||||||||||||||||
Noninterest income |
550 | 665 | 656 | (17 | %) | (16 | %) | 2,455 | 2,729 | (10 | %) | |||||||||||||||||||||
Total revenue (a) |
1,470 | 1,567 | 1,575 | (6 | %) | (7 | %) | 6,030 | 6,351 | (5 | %) | |||||||||||||||||||||
Provision for loan and lease losses |
55 | 87 | 166 | (36 | %) | (67 | %) | 423 | 1,538 | (73 | %) | |||||||||||||||||||||
Noninterest expense |
993 | 946 | 987 | 5 | % | 1 | % | 3,758 | 3,855 | (3 | %) | |||||||||||||||||||||
Net income attributable to Bancorp |
314 | 381 | 333 | (18 | %) | (6 | %) | 1,297 | 753 | 72 | % | |||||||||||||||||||||
Net income available to common shareholders |
305 | 373 | 270 | (18 | %) | 13 | % | 1,094 | 503 | 118 | % | |||||||||||||||||||||
Common Share Data |
||||||||||||||||||||||||||||||||
Earnings per share, basic |
$ | 0.33 | $ | 0.41 | $ | 0.34 | (20 | %) | (3 | %) | $ | 1.20 | $ | 0.63 | 90 | % | ||||||||||||||||
Earnings per share, diluted |
0.33 | 0.40 | 0.33 | (18 | %) | | 1.18 | 0.63 | 87 | % | ||||||||||||||||||||||
Cash dividends per common share |
0.08 | 0.08 | 0.01 | | 700 | % | 0.28 | 0.04 | 600 | % | ||||||||||||||||||||||
Book value per share |
13.92 | 13.73 | 13.06 | 1 | % | 7 | % | 13.92 | 13.06 | 7 | % | |||||||||||||||||||||
Market price per share |
12.72 | 10.10 | 14.68 | 26 | % | (13 | %) | 12.72 | 14.68 | (13 | %) | |||||||||||||||||||||
Common shares outstanding (in thousands) |
919,804 | 919,779 | 796,273 | | 16 | % | 919,804 | 796,273 | 16 | % | ||||||||||||||||||||||
Average common shares outstanding (in thousands): |
||||||||||||||||||||||||||||||||
Basic |
914,997 | 914,947 | 791,072 | | 16 | % | 906,461 | 790,852 | 15 | % | ||||||||||||||||||||||
Diluted |
956,349 | 955,490 | 836,225 | | 14 | % | 949,534 | 799,381 | 19 | % | ||||||||||||||||||||||
Market capitalization |
$ | 11,700 | $ | 9,290 | $ | 11,689 | 26 | % | | $ | 11,700 | $ | 11,689 | | ||||||||||||||||||
Financial Ratios |
||||||||||||||||||||||||||||||||
Return on assets |
1.08 | % | 1.34 | % | 1.18 | % | (19 | %) | (8 | %) | 1.15 | % | 0.67 | % | 72 | % | ||||||||||||||||
Return on average common equity |
9.5 | % | 11.9 | % | 10.4 | % | (20 | %) | (9 | %) | 9.0 | % | 5.0 | % | 80 | % | ||||||||||||||||
Return on average tangible common equity (b) |
11.9 | % | 14.9 | % | 13.9 | % | (20 | %) | (14 | %) | 11.4 | % | 7.0 | % | 63 | % | ||||||||||||||||
Noninterest income as a percent of total revenue |
37 | % | 42 | % | 42 | % | (12 | %) | (12 | %) | 41 | % | 43 | % | (5 | %) | ||||||||||||||||
Average equity as a percent of average assets |
11.41 | % | 11.33 | % | 12.52 | % | 1 | % | (9 | %) | 11.41 | % | 12.22 | % | (7 | %) | ||||||||||||||||
Tangible common equity (c) (d) |
8.68 | % | 8.63 | % | 7.04 | % | 1 | % | 23 | % | 8.68 | % | 7.04 | % | 23 | % | ||||||||||||||||
Net interest margin (a) |
3.67 | % | 3.65 | % | 3.75 | % | 1 | % | (2 | %) | 3.66 | % | 3.66 | % | | |||||||||||||||||
Efficiency (a) |
67.5 | % | 60.4 | % | 62.6 | % | 12 | % | 8 | % | 62.3 | % | 60.7 | % | 3 | % | ||||||||||||||||
Effective tax rate |
24.9 | % | 27.9 | % | 20.0 | % | (11 | %) | 25 | % | 29.1 | % | 19.8 | % | 47 | % | ||||||||||||||||
Credit Quality |
||||||||||||||||||||||||||||||||
Net losses charged off |
$ | 239 | $ | 262 | $ | 356 | (9 | %) | (33 | %) | $ | 1,172 | $ | 2,328 | (49 | %) | ||||||||||||||||
Net losses charged off as a percent of average loans and leases |
1.19 | % | 1.32 | % | 1.86 | % | (10 | %) | (36 | %) | 1.49 | % | 3.02 | % | (51 | %) | ||||||||||||||||
Allowance for loan and lease losses as a percent of loans and leases |
2.78 | % | 3.08 | % | 3.88 | % | (10 | %) | (28 | %) | 2.78 | % | 3.88 | % | (28 | %) | ||||||||||||||||
Allowance for credit losses as a percent of loans and leases |
3.01 | % | 3.32 | % | 4.17 | % | (9 | %) | (28 | %) | 3.01 | % | 4.17 | % | (28 | %) | ||||||||||||||||
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned (e) |
2.23 | % | 2.44 | % | 2.79 | % | (9 | %) | (20 | %) | 2.23 | % | 2.79 | % | (20 | %) | ||||||||||||||||
Average Balances |
||||||||||||||||||||||||||||||||
Loans and leases, including held for sale |
$ | 82,278 | $ | 80,013 | $ | 79,148 | 3 | % | 4 | % | $ | 80,214 | $ | 79,232 | 1 | % | ||||||||||||||||
Total securities and other |
17,243 | 18,142 | 18,066 | (5 | %) | (5 | %) | 17,468 | 19,699 | (11 | %) | |||||||||||||||||||||
Total assets |
115,268 | 113,295 | 111,858 | 2 | % | 3 | % | 112,666 | 112,434 | | ||||||||||||||||||||||
Transaction deposits (f) |
75,627 | 72,214 | 67,964 | 5 | % | 11 | % | 72,392 | 65,662 | 10 | % | |||||||||||||||||||||
Core deposits (g) |
80,587 | 78,222 | 76,454 | 3 | % | 5 | % | 78,652 | 76,188 | 3 | % | |||||||||||||||||||||
Wholesale funding (h) |
17,081 | 17,932 | 17,269 | (5 | %) | (1 | %) | 16,973 | 18,917 | (10 | %) | |||||||||||||||||||||
Bancorp shareholders equity |
13,147 | 12,841 | 14,007 | 2 | % | (6 | %) | 12,851 | 13,737 | (6 | %) | |||||||||||||||||||||
Regulatory Capital Ratios (i) |
||||||||||||||||||||||||||||||||
Tier I capital |
11.91 | % | 11.96 | % | 13.89 | % | | (14 | %) | 11.91 | % | 13.89 | % | (14 | %) | |||||||||||||||||
Total risk-based capital |
16.08 | % | 16.25 | % | 18.08 | % | (1 | %) | (11 | %) | 16.08 | % | 18.08 | % | (11 | %) | ||||||||||||||||
Tier I leverage |
11.10 | % | 11.08 | % | 12.79 | % | | (13 | %) | 11.10 | % | 12.79 | % | (13 | %) | |||||||||||||||||
Tier I common equity (d) |
9.34 | % | 9.33 | % | 7.48 | % | | 25 | % | 9.34 | % | 7.48 | % | 25 | % | |||||||||||||||||
Operations |
||||||||||||||||||||||||||||||||
Banking centers |
1,316 | 1,314 | 1,312 | | | 1,316 | 1,312 | | ||||||||||||||||||||||||
ATMs |
2,425 | 2,437 | 2,445 | | (1 | %) | 2,425 | 2,445 | (1 | %) | ||||||||||||||||||||||
Full-time equivalent employees |
21,334 | 21,172 | 20,838 | 1 | % | 2 | % | 21,334 | 20,838 | 2 | % |
(a) | Presented on a fully taxable equivalent basis |
(b) | The return on average tangible common equity is calculated as tangible net income available to common shareholders (net income available to common shareholders excluding tax effected amortization of intangibles) divided by average tangible common equity, (average common equity less goodwill and intangible assets). |
(c) | The tangible common equity ratio is calculated as tangible common equity (shareholders equity less preferred stock, goodwill, intangible assets and accumulated other comprehensive income) divided by tangible assets (total assets less goodwill, intangible assets and accumulated other comprehensive income.) |
(d) | The tangible common equity and tier I common equity ratios, while not required by U.S. GAAP, are considered to be important metrics with which to analyze a banks position. The ratios have been included herein to facilitate a greater understanding of the Bancorps capital structure and financial condition. |
(e) | Excludes nonaccrual loans held for sale |
(f) | Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers |
(g) | Includes transaction deposits plus other time deposits |
(h) | Includes certificates $100,000 and over, other deposits, federal funds purchased, short-term borrowings and long-term debt |
(i) | Current period regulatory capital ratios are estimates |
19
Fifth Third Bancorp and Subsidiaries
Financial Highlights
$ in millions, except per share data
(unaudited)
For the Three Months Ended | ||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
||||||||||||||||
Income Statement Data |
||||||||||||||||||||
Net interest income (a) |
$ | 920 | $ | 902 | $ | 869 | $ | 884 | $ | 919 | ||||||||||
Noninterest income |
550 | 665 | 656 | 584 | 656 | |||||||||||||||
Total revenue (a) |
1,470 | 1,567 | 1,525 | 1,468 | 1,575 | |||||||||||||||
Provision for loan and lease losses |
55 | 87 | 113 | 168 | 166 | |||||||||||||||
Noninterest expense |
993 | 946 | 901 | 918 | 987 | |||||||||||||||
Net income attributable to Bancorp |
314 | 381 | 337 | 265 | 333 | |||||||||||||||
Net income available to common shareholders |
305 | 373 | 328 | 88 | 270 | |||||||||||||||
Common Share Data |
||||||||||||||||||||
Earnings per share, basic |
$ | 0.33 | $ | 0.41 | $ | 0.36 | $ | 0.10 | $ | 0.34 | ||||||||||
Earnings per share, diluted |
0.33 | 0.40 | 0.35 | 0.10 | 0.33 | |||||||||||||||
Cash dividends per common share |
0.08 | 0.08 | 0.06 | 0.06 | 0.01 | |||||||||||||||
Book value per share |
13.92 | 13.73 | 13.23 | 12.80 | 13.06 | |||||||||||||||
Market price per share |
12.72 | 10.10 | 12.75 | 13.89 | 14.68 | |||||||||||||||
Common shares outstanding (in thousands) |
919,804 | 919,779 | 919,818 | 918,728 | 796,273 | |||||||||||||||
Average common shares outstanding (in thousands): |
||||||||||||||||||||
Basic |
914,997 | 914,947 | 914,601 | 880,830 | 791 ,072 | |||||||||||||||
Diluted |
956,349 | 955,490 | 955,478 | 894,841 | 836,225 | |||||||||||||||
Market capitalization |
$ | 11,700 | $ | 9,290 | $ | 11,728 | $ | 12,761 | $ | 11,689 | ||||||||||
Financial Ratios |
||||||||||||||||||||
Return on assets |
1.08 | % | 1.34 | % | 1.22 | % | 0.97 | % | 1.18 | % | ||||||||||
Return on average common equity |
9.5 | % | 11.9 | % | 11.0 | % | 3.1 | % | 10.4 | % | ||||||||||
Return on average tangible common equity (b) |
11.9 | % | 14.9 | % | 14.0 | % | 4.2 | % | 13.9 | % | ||||||||||
Noninterest income as a percent of total revenue |
37 | % | 42 | % | 43 | % | 40 | % | 42 | % | ||||||||||
Average equity as a percent of average assets |
11.41 | % | 11.33 | % | 11.12 | % | 11.77 | % | 12.52 | % | ||||||||||
Tangible common equity (c) (d) |
8.68 | % | 8.63 | % | 8.64 | % | 8.39 | % | 7.04 | % | ||||||||||
Net interest margin (a) |
3.67 | % | 3.65 | % | 3.62 | % | 3.71 | % | 3.75 | % | ||||||||||
Efficiency (a) |
67.5 | % | 60.4 | % | 59.1 | % | 62.5 | % | 62.6 | % | ||||||||||
Effective tax rate |
24.9 | % | 27.9 | % | 33.3 | % | 29.7 | % | 20.0 | % | ||||||||||
Credit Quality |
||||||||||||||||||||
Net losses charged off |
$ | 239 | $ | 262 | $ | 304 | $ | 367 | $ | 356 | ||||||||||
Net losses charged off as a percent of average loans and leases |
1.19 | % | 1.32 | % | 1.56 | % | 1.92 | % | 1.86 | % | ||||||||||
Allowance for loan and lease losses as a percent of loans and leases |
2.78 | % | 3.08 | % | 3.35 | % | 3.62 | % | 3.88 | % | ||||||||||
Allowance for credit losses as a percent of loans and leases |
3.01 | % | 3.32 | % | 3.61 | % | 3.89 | % | 4.17 | % | ||||||||||
Nonperforming assets as a percent of loans, leases and other assets, including other real estate owned (e) |
2.23 | % | 2.44 | % | 2.66 | % | 2.73 | % | 2.79 | % | ||||||||||
Average Balances |
||||||||||||||||||||
Loans and leases, including held for sale |
$ | 82,278 | $ | 80,013 | $ | 79,153 | $ | 79,379 | $ | 79,148 | ||||||||||
Total securities and other short-term investments |
17,243 | 18,142 | 17,192 | 17,290 | 18,066 | |||||||||||||||
Total assets |
115,268 | 113,295 | 111,200 | 110,844 | 111,858 | |||||||||||||||
Transaction deposits (f) |
75,627 | 72,214 | 71,506 | 70,161 | 67,964 | |||||||||||||||
Core deposits (g) |
80,587 | 78,222 | 78,244 | 77,524 | 76,454 | |||||||||||||||
Wholesale funding (h) |
17,081 | 17,932 | 16,433 | 16,430 | 17,269 | |||||||||||||||
Bancorp shareholders equity |
13,147 | 12,841 | 12,365 | 13,052 | 14,007 | |||||||||||||||
Regulatory Capital Ratios (i) |
||||||||||||||||||||
Tier I capital |
11.91 | % | 11.96 | % | 11.93 | % | 12.20 | % | 13.89 | % | ||||||||||
Total risk-based capital |
16.08 | % | 16.25 | % | 16.03 | % | 16.27 | % | 18.08 | % | ||||||||||
Tier I leverage |
11.10 | % | 11.08 | % | 11.03 | % | 11.21 | % | 12.79 | % | ||||||||||
Tier I common equity (d) |
9.34 | % | 9.33 | % | 9.20 | % | 8.99 | % | 7.48 | % | ||||||||||
Operations |
||||||||||||||||||||
Banking centers |
1,316 | 1,314 | 1,316 | 1,310 | 1,312 | |||||||||||||||
ATMs |
2,425 | 2,437 | 2,456 | 2,453 | 2,445 | |||||||||||||||
:Full-time equivalent employees |
21,334 | 21,172 | 20,953 | 20,837 | 20,838 |
(a) | Presented on a fully taxable equivalent basis |
(b) | The return on average tangible common equity is calculated as tangible net income available to common shareholders (net income available to common shareholders excluding tax effected amortization of intangibles) divided by average tangible common equity, (average common equity less goodwill and intangible assets). |
(c) | The tangible common equity ratio is calculated as tangible common equity (shareholders equity less preferred stock, goodwill, intangible assets and accumulated other comprehensive income) divided by tangible assets (total assets less goodwill, intangible assets and accumulated other comprehensive income.) |
(d) | The tangible common equity and tier I common equity ratios, while not required by U.S. GAAP, are considered to be important metrics with which to analyze a banks position. The ratios have been included herein to facilitate a greater understanding of the Bancorps capital structure and financial condition. |
(e) | Excludes nonaccrual loans held for sale |
(f) | Includes demand, interest checking, savings, money market and foreign office deposits of commercial customers |
(g) | Includes transaction deposits plus other time deposits |
(h) | Includes certificates $100,000 and over, other deposits, federal funds purchased, short-term borrowings and long-term debt |
(i) | Current period regulatory capital ratios are estimates |
20
Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income
$ in millions
(unaudited)
For the Three Months Ended | % Change | Year to Date | % Change | |||||||||||||||||||||||||||||
December 2011 |
September 2011 |
December 2010 |
Seq | Yr/Yr | December 2011 |
December 2010 |
Yr/Yr | |||||||||||||||||||||||||
Interest Income |
||||||||||||||||||||||||||||||||
Interest and fees on loans and leases |
$ | 911 | $ | 899 | $ | 950 | 1 | % | (4 | %) | $ | 3,613 | $ | 3,823 | (6 | %) | ||||||||||||||||
Interest on securities |
145 | 155 | 152 | (7 | %) | (5 | %) | 600 | 658 | (9 | %) | |||||||||||||||||||||
Interest on other short-term investments |
1 | 1 | 2 | | (50 | %) | 5 | 8 | (39 | %) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest income |
1,057 | 1,055 | 1,104 | | (4 | %) | 4,218 | 4,489 | (6 | %) | ||||||||||||||||||||||
Interest Expense |
||||||||||||||||||||||||||||||||
Interest on deposits |
65 | 84 | 118 | (22 | %) | (45 | %) | 352 | 591 | (41 | %) | |||||||||||||||||||||
Interest on short-term borrowings |
1 | 1 | 1 | | | 4 | 4 | | ||||||||||||||||||||||||
Interest on long-term debt |
75 | 72 | 71 | 4 | % | 6 | % | 305 | 290 | 5 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest expense |
141 | 157 | 190 | (10 | %) | (26 | %) | 661 | 885 | (25 | %) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Interest Income |
916 | 898 | 914 | 2 | % | | 3,557 | 3,604 | (1 | %) | ||||||||||||||||||||||
Provision for loan and lease losses |
55 | 87 | 166 | (36 | %) | (67 | %) | 423 | 1,538 | (73 | %) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net interest income after provision for loan and lease losses |
861 | 811 | 748 | 6 | % | 15 | % | 3,134 | 2,066 | 52 | % | |||||||||||||||||||||
Noninterest Income |
||||||||||||||||||||||||||||||||
Service charges on deposits |
136 | 134 | 140 | 1 | % | (3 | %) | 520 | 574 | (9 | %) | |||||||||||||||||||||
Corporate banking revenue |
82 | 87 | 103 | (5 | %) | (20 | %) | 350 | 364 | (4 | %) | |||||||||||||||||||||
Mortgage banking net revenue |
156 | 178 | 149 | (12 | %) | 5 | % | 597 | 647 | (8 | %) | |||||||||||||||||||||
Investment advisory revenue |
90 | 92 | 93 | (2 | %) | (3 | %) | 375 | 361 | 4 | % | |||||||||||||||||||||
Card and processing revenue |
60 | 78 | 81 | (24 | %) | (26 | %) | 308 | 316 | (3 | %) | |||||||||||||||||||||
Other noninterest income |
24 | 64 | 55 | (63 | %) | (57 | %) | 250 | 406 | (38 | %) | |||||||||||||||||||||
Securities gains, net |
5 | 26 | 21 | (81 | %) | (76 | %) | 46 | 47 | (2 | %) | |||||||||||||||||||||
Securities gains, net - non-qualifying hedges on mortgage servicing rights |
(3 | ) | 6 | 14 | NM | NM | 9 | 14 | (36 | %) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total noninterest income |
550 | 665 | 656 | (17 | %) | (16 | %) | 2,455 | 2,729 | (10 | %) | |||||||||||||||||||||
Noninterest Expense |
||||||||||||||||||||||||||||||||
Salaries, wages and incentives |
393 | 369 | 385 | 7 | % | 2 | % | 1,478 | 1,430 | 3 | % | |||||||||||||||||||||
Employee benefits |
84 | 70 | 73 | 21 | % | 16 | % | 330 | 314 | 5 | % | |||||||||||||||||||||
Net occupancy expense |
79 | 75 | 76 | 5 | % | 4 | % | 305 | 298 | 2 | % | |||||||||||||||||||||
Technology and communications |
48 | 48 | 52 | | (8 | %) | 188 | 189 | (1 | %) | ||||||||||||||||||||||
Equipment expense |
27 | 28 | 32 | (3 | %) | (13 | %) | 113 | 122 | (8 | %) | |||||||||||||||||||||
Card and processing expense |
28 | 34 | 26 | (17 | %) | 9 | % | 120 | 108 | 12 | % | |||||||||||||||||||||
Other noninterest expense |
334 | 322 | 343 | 4 | % | (3 | %) | 1,224 | 1,394 | (12 | %) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total noninterest expense |
993 | 946 | 987 | 5 | % | 1 | % | 3,758 | 3,855 | (3 | %) | |||||||||||||||||||||
Income before income taxes |
418 | 530 | 417 | (21 | %) | _ | 1,831 | 940 | 95 | % | ||||||||||||||||||||||
Applicable income taxes |
104 | 149 | 83 | (30 | %) | 25 | % | 533 | 187 | 185 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Income |
314 | 381 | 334 | (18 | %) | (6 | %) | 1,298 | 753 | 72 | % | |||||||||||||||||||||
Less: Net income attributable to noncontrolling interest |
| | 1 | | (100 | %) | 1 | | 100 | % | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income attributable to Bancorp |
314 | 381 | 333 | (18 | %) | (6 | %) | 1,297 | 753 | 72 | % | |||||||||||||||||||||
Dividends on preferred stock |
9 | 8 | 63 | 13 | % | (86 | %) | 203 | 250 | (19 | %) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income available to common shareholders |
$ | 305 | $ | 373 | $ | 270 | (18 | %) | 13 | % | $ | 1,094 | $ | 503 | 118 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21
Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Income (Taxable Equivalent)
$ in millions
(unaudited)
For the Three Months Ended | ||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
||||||||||||||||
Interest Income |
||||||||||||||||||||
Interest and fees on loans and leases |
$ | 911 | $ | 899 | $ | 893 | $ | 910 | $ | 950 | ||||||||||
Interest on securities |
145 | 155 | 151 | 149 | 152 | |||||||||||||||
Interest on other short-term investments |
1 | 1 | 1 | 1 | 2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total interest income |
1,057 | 1,055 | 1,045 | 1,060 | 1,104 | |||||||||||||||
Taxable equivalent adjustment |
4 | 4 | 5 | 5 | 5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total interest income (taxable equivalent) |
1,061 | 1,059 | 1,050 | 1,065 | 1,109 | |||||||||||||||
Interest Expense |
||||||||||||||||||||
Interest on deposits |
65 | 84 | 97 | 106 | 118 | |||||||||||||||
Interest on short-term borrowings |
1 | 1 | 1 | 1 | 1 | |||||||||||||||
Interest on long-term debt |
75 | 72 | 83 | 74 | 71 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total interest expense |
141 | 157 | 181 | 181 | 190 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net interest income (taxable equivalent) |
920 | 902 | 869 | 884 | 919 | |||||||||||||||
Provision for loan and lease losses |
55 | 87 | 113 | 168 | 166 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net interest income (taxable equivalent) after provision for loan and lease losses |
865 | 815 | 756 | 716 | 753 | |||||||||||||||
Noninterest Income |
||||||||||||||||||||
Service charges on deposits |
136 | 134 | 126 | 124 | 140 | |||||||||||||||
Corporate banking revenue |
82 | 87 | 95 | 86 | 103 | |||||||||||||||
Mortgage banking net revenue |
156 | 178 | 162 | 102 | 149 | |||||||||||||||
Investment advisory revenue |
90 | 92 | 95 | 98 | 93 | |||||||||||||||
Card and processing revenue |
60 | 78 | 89 | 80 | 81 | |||||||||||||||
Other noninterest income |
24 | 64 | 83 | 81 | 55 | |||||||||||||||
Securities gains, net |
5 | 26 | 6 | 8 | 21 | |||||||||||||||
Securities gains, net - non-qualifying hedges on mortgage servicing rights |
(3 | ) | 6 | | 5 | 14 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total noninterest income |
550 | 665 | 656 | 584 | 656 | |||||||||||||||
Noninterest Expense |
||||||||||||||||||||
Salaries, wages and incentives |
393 | 369 | 365 | 351 | 385 | |||||||||||||||
Employee benefits |
84 | 70 | 79 | 97 | 73 | |||||||||||||||
Net occupancy expense |
79 | 75 | 75 | 77 | 76 | |||||||||||||||
Technology and communications |
48 | 48 | 48 | 45 | 52 | |||||||||||||||
Equipment expense |
27 | 28 | 28 | 29 | 32 | |||||||||||||||
Card and processing expense |
28 | 34 | 29 | 29 | 26 | |||||||||||||||
Other noninterest expense |
334 | 322 | 277 | 290 | 343 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total noninterest expense |
993 | 946 | 901 | 918 | 987 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income before income taxes (taxable equivalent) |
422 | 534 | 511 | 382 | 422 | |||||||||||||||
Taxable equivalent adjustment |
4 | 4 | 5 | 5 | 5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income before income taxes |
418 | 530 | 506 | 377 | 417 | |||||||||||||||
Applicable income taxes |
104 | 149 | 169 | 112 | 83 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Income |
314 | 381 | 337 | 265 | 334 | |||||||||||||||
Less: Net Income attributable to noncontrolling interest |
| | | | 1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income attributable to Bancorp |
314 | 381 | 337 | 265 | 333 | |||||||||||||||
Dividends on preferred stock |
9 | 8 | 9 | 177 | 63 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income available to common shareholders |
$ | 305 | $ | 373 | $ | 328 | $ | 88 | $ | 270 | ||||||||||
|
|
|
|
|
|
|
|
|
|
22
Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share data
(unaudited)
As of | % Change | |||||||||||||||||||
December 2011 |
September 2011 |
December 2010 |
Seq | Yr/Yr | ||||||||||||||||
Assets |
||||||||||||||||||||
Cash and due from banks |
$ | 2,663 | $ | 2,348 | $ | 2,159 | 13 | % | 23 | % | ||||||||||
Available-for-sale and other securities (a) |
15,362 | 16,227 | 15,414 | (5 | %) | | ||||||||||||||
Held-to-maturity securities (b) |
322 | 337 | 353 | (5 | %) | (9 | %) | |||||||||||||
Trading securities |
177 | 189 | 294 | (6 | %) | (40 | %) | |||||||||||||
Other short-term investments |
1,781 | 2,028 | 1,515 | (12 | %) | 18 | % | |||||||||||||
Loans held for sale |
2,954 | 1,840 | 2,216 | 61 | % | 33 | % | |||||||||||||
Portfolio loans and leases: |
||||||||||||||||||||
Commercial and industrial loans |
30,783 | 29,258 | 27,191 | 5 | % | 13 | % | |||||||||||||
Commercial mortgage loans |
10,138 | 10,330 | 10,845 | (2 | %) | (7 | %) | |||||||||||||
Commercial construction loans |
1,020 | 1,213 | 2,048 | (16 | %) | (50 | %) | |||||||||||||
Commercial leases |
3,531 | 3,368 | 3,378 | 5 | % | 5 | % | |||||||||||||
Residential mortgage loans |
10,672 | 10,249 | 8,956 | 4 | % | 19 | % | |||||||||||||
Home equity |
10,719 | 10,920 | 11,513 | (2 | %) | (7 | %) | |||||||||||||
Automobile loans |
11,827 | 11,593 | 10,983 | 2 | % | 8 | % | |||||||||||||
Credit card |
1,978 | 1,878 | 1,896 | 5 | % | 4 | % | |||||||||||||
Other consumer loans and leases |
350 | 407 | 681 | (14 | %) | (49 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio loans and leases |
81,018 | 79,216 | 77,491 | 2 | % | 5 | % | |||||||||||||
Allowance for loan and lease losses |
(2,255 | ) | (2,439 | ) | (3,004 | ) | (8 | %) | (25 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio loans and leases, net |
78,763 | 76,777 | 74,487 | 3 | % | 6 | % | |||||||||||||
Bank premises and equipment |
2,447 | 2,410 | 2,389 | 2 | % | 2 | % | |||||||||||||
Operating lease equipment |
497 | 462 | 479 | 8 | % | 4 | % | |||||||||||||
Goodwill |
2,417 | 2,417 | 2,417 | | | |||||||||||||||
Intangible assets |
40 | 45 | 62 | (10 | %) | (36 | %) | |||||||||||||
Servicing rights |
681 | 662 | 822 | 3 | % | (17 | %) | |||||||||||||
Other assets |
8,863 | 9,163 | 8,400 | (3 | %) | 6 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 116,967 | $ | 114,905 | $ | 111,007 | 2 | % | 5 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Demand |
$ | 27,600 | $ | 24,547 | $ | 21,413 | 12 | % | 29 | % | ||||||||||
Interest checking |
20,392 | 18,616 | 18,560 | 10 | % | 10 | % | |||||||||||||
Savings |
21,756 | 21,673 | 20,903 | | 4 | % | ||||||||||||||
Money market |
4,989 | 5,448 | 5,035 | (8 | %) | (1 | %) | |||||||||||||
Foreign office |
3,250 | 3,139 | 3,721 | 4 | % | (13 | %) | |||||||||||||
Other time |
4,638 | 5,439 | 7,728 | (15 | %) | (40 | %) | |||||||||||||
Certificates - $100,000 and over |
3,039 | 3,092 | 4,287 | (2 | %) | (29 | %) | |||||||||||||
Other |
46 | 93 | 1 | (51 | %) | NM | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total deposits |
85,710 | 82,047 | 81,648 | 4 | % | 5 | % | |||||||||||||
Federal funds purchased |
346 | 427 | 279 | (19 | %) | 24 | % | |||||||||||||
Other short-term borrowings |
3,239 | 4,894 | 1,574 | (34 | %) | 106 | % | |||||||||||||
Accrued taxes, interest and expenses |
1,469 | 1,307 | 889 | 12 | % | 65 | % | |||||||||||||
Other liabilities |
3,270 | 3,372 | 2,979 | (3 | %) | 10 | % | |||||||||||||
Long-term debt |
9,682 | 9,800 | 9,558 | (1 | %) | 1 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
103,716 | 101,847 | 96,927 | 2 | % | 7 | % | |||||||||||||
Equity |
||||||||||||||||||||
Common stock |
2,051 | 2,051 | 1,779 | | 15 | % | ||||||||||||||
Preferred stock |
398 | 398 | 3,654 | | (89 | %) | ||||||||||||||
Capital surplus |
2,792 | 2,780 | 1,715 | | 63 | % | ||||||||||||||
Retained earnings |
7,554 | 7,323 | 6,719 | 3 | % | 12 | % | |||||||||||||
Accumulated other comprehensive income |
470 | 542 | 314 | (13 | %) | 50 | % | |||||||||||||
Treasury stock |
(64 | ) | (65 | ) | (130 | ) | (2 | %) | (51 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Bancorp shareholders equity |
13,201 | 13,029 | 14,051 | 1 | % | (6 | %) | |||||||||||||
Noncontrolling interest |
50 | 29 | 29 | 72 | % | 69 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Equity |
13,251 | 13,058 | 14,080 | 1 | % | (6 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities and equity |
$ | 116,967 | $ | 114,905 | $ | 111 ,007 | 2 | % | 5 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(a) Amortized cost |
$ | 14,614 | $ | 15,427 | $ | 14,919 | (5 | %) | (2 | %) | ||||||||||
(b) Market values |
322 | 337 | 353 | (5 | %) | (9 | %) | |||||||||||||
(c) Common shares, stated value $2.22 per share (in thousands): |
|
|||||||||||||||||||
Authorized |
2,000,000 | 2,000,000 | 2,000,000 | | | |||||||||||||||
Outstanding, excluding treasury |
919,804 | 919,779 | 796,273 | | 16 | % | ||||||||||||||
Treasury |
4,088 | 4,114 | 5,232 | (1 | %) | (22 | %) |
23
Fifth Third Bancorp and Subsidiaries
Consolidated Balance Sheets
$ in millions, except per share data
(unaudited)
As of | ||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
||||||||||||||||
Assets |
||||||||||||||||||||
Cash and due from banks |
$ | 2,663 | $ | 2,348 | $ | 2,380 | $ | 2,121 | $ | 2,159 | ||||||||||
Available-for-sale and other securities (a) |
15,362 | 16,227 | 15,502 | 15,135 | 15,414 | |||||||||||||||
Held-to-maturity securities (b) |
322 | 337 | 344 | 346 | 353 | |||||||||||||||
Trading securities |
177 | 189 | 217 | 216 | 294 | |||||||||||||||
Other short-term investments |
1,781 | 2,028 | 1,370 | 2,481 | 1,515 | |||||||||||||||
Loans held for sale |
2,954 | 1,840 | 1,185 | 1,291 | 2,216 | |||||||||||||||
Portfolio loans and leases: |
||||||||||||||||||||
Commercial and industrial loans |
30,783 | 29,258 | 28,099 | 27,344 | 27,191 | |||||||||||||||
Commercial mortgage loans |
10,138 | 10,330 | 10,233 | 10,510 | 10,845 | |||||||||||||||
Commercial construction loans |
1,020 | 1,213 | 1,778 | 1,980 | 2,048 | |||||||||||||||
Commercial leases |
3,531 | 3,368 | 3,326 | 3,367 | 3,378 | |||||||||||||||
Residential mortgage loans |
10,672 | 10,249 | 9,849 | 9,530 | 8,956 | |||||||||||||||
Home equity |
10,719 | 10,920 | 11,048 | 11,222 | 11,513 | |||||||||||||||
Automobile loans |
11,827 | 11,593 | 11,315 | 11,129 | 10,983 | |||||||||||||||
Credit card |
1,978 | 1,878 | 1,856 | 1,821 | 1,896 | |||||||||||||||
Other consumer loans and leases |
350 | 407 | 463 | 562 | 681 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio loans and leases |
81,018 | 79,216 | 77,967 | 77,465 | 77,491 | |||||||||||||||
Allowance for loan and lease losses |
(2,255 | ) | (2,439 | ) | (2,614 | ) | (2,805 | ) | (3,004 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Portfolio loans and leases, net |
78,763 | 76,777 | 75,353 | 74,660 | 74,487 | |||||||||||||||
Bank premises and equipment |
2,447 | 2,410 | 2,395 | 2,389 | 2,389 | |||||||||||||||
Operating lease equipment |
497 | 462 | 492 | 513 | 479 | |||||||||||||||
Goodwill |
2,417 | 2,417 | 2,417 | 2,417 | 2,417 | |||||||||||||||
Intangible assets |
40 | 45 | 49 | 55 | 62 | |||||||||||||||
Servicing rights |
681 | 662 | 847 | 894 | 822 | |||||||||||||||
Other assets |
8,863 | 9,163 | 8,254 | 7,967 | 8,400 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 116,967 | $ | 114,905 | $ | 110,805 | $ | 110,485 | $ | 111,007 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Demand |
$ | 27,600 | $ | 24,547 | $ | 22,589 | $ | 22,066 | $ | 21,413 | ||||||||||
Interest checking |
20,392 | 18,616 | 18,072 | 18,597 | 18,560 | |||||||||||||||
Savings |
21,756 | 21,673 | 21,764 | 21,697 | 20,903 | |||||||||||||||
Money market |
4,989 | 5,448 | 4,859 | 5,184 | 5,035 | |||||||||||||||
Foreign office |
3,250 | 3,139 | 3,271 | 3,569 | 3,721 | |||||||||||||||
Other time |
4,638 | 5,439 | 6,399 | 7,043 | 7,728 | |||||||||||||||
Certificates - $100,000 and over |
3,039 | 3,092 | 3,642 | 4,160 | 4,287 | |||||||||||||||
Other |
46 | 93 | 2 | 1 | 1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total deposits |
85,710 | 82,047 | 80,598 | 82,317 | 81,648 | |||||||||||||||
Federal funds purchased |
346 | 427 | 403 | 332 | 279 | |||||||||||||||
Other short-term borrowings |
3,239 | 4,894 | 2,702 | 1,297 | 1,574 | |||||||||||||||
Accrued taxes, interest and expenses |
1,469 | 1,307 | 1,067 | 844 | 889 | |||||||||||||||
Other liabilities |
3,270 | 3,372 | 3,282 | 2,948 | 2,979 | |||||||||||||||
Long-term debt |
9,682 | 9,800 | 10,152 | 10,555 | 9,558 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
103,716 | 101,847 | 98,204 | 98,293 | 96,927 | |||||||||||||||
Equity |
||||||||||||||||||||
Common stock |
2,051 | 2,051 | 2,051 | 2,051 | 1,779 | |||||||||||||||
Preferred stock |
398 | 398 | 398 | 398 | 3,654 | |||||||||||||||
Capital surplus |
2,792 | 2,780 | 2,769 | 2,824 | 1,715 | |||||||||||||||
Retained earnings |
7,554 | 7,323 | 7,024 | 6,752 | 6,719 | |||||||||||||||
Accumulated other comprehensive income |
470 | 542 | 396 | 263 | 314 | |||||||||||||||
Treasury stock |
(64 | ) | (65 | ) | (66 | ) | (125 | ) | (130 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Bancorp shareholders equity |
13,201 | 13,029 | 12,572 | 12,163 | 14,051 | |||||||||||||||
Noncontrolling interest |
50 | 29 | 29 | 29 | 29 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Equity |
13,251 | 13,058 | 12,601 | 12,192 | 14,080 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities and equity |
$ | 116,967 | $ | 114,905 | $ | 110,805 | $ | 110,485 | $ | 111,007 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(a) Amortized cost |
$ | 14,614 | $ | 15,427 | $ | 14,889 | $ | 14,707 | $ | 14,919 | ||||||||||
(b) Market values |
322 | 337 | 344 | 346 | 353 | |||||||||||||||
(c) Common shares, stated value $2.22 per share (in thousands): |
|
|||||||||||||||||||
Authorized |
2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | |||||||||||||||
Outstanding, excluding treasury |
919,804 | 919,779 | 919,818 | 918,728 | 796,273 | |||||||||||||||
Treasury |
4,088 | 4,114 | 4,074 | 5,165 | 5,232 |
24
Fifth Third Bancorp and Subsidiaries
Consolidated Statements of Changes in Equity
$ in millions
(unaudited)
For the Three Months Ended | Year to Date | |||||||||||||||
December 2011 |
December 2010 |
December 2011 |
December 2010 |
|||||||||||||
Total equity, beginning |
$ | 13,058 | $ | 13,913 | $ | 14,080 | $ | 13,497 | ||||||||
Net income attributable to Bancorp |
314 | 333 | 1,297 | 753 | ||||||||||||
Other comprehensive income, net of tax: |
||||||||||||||||
Change in unrealized gains and (losses): |
||||||||||||||||
Available-for-sale securities |
(34 | ) | (112 | ) | 164 | 105 | ||||||||||
Qualifying cash flow hedges |
(11 | ) | (6 | ) | 13 | (38 | ) | |||||||||
Change in accumulated other comprehensive income related to employee benefit plans |
(26 | ) | 1 | (20 | ) | 6 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income |
243 | 216 | 1,454 | 826 | ||||||||||||
Cash dividends declared: |
||||||||||||||||
Common stock |
(74 | ) | (8 | ) | (258 | ) | (32 | ) | ||||||||
Preferred stock |
(9 | ) | (51 | ) | (50 | ) | (205 | ) | ||||||||
Issuance of common stock |
| | 1,648 | | ||||||||||||
TARP repayment |
| | (3,408 | ) | | |||||||||||
Stock-based awards exercised, including treasury shares issued |
| | 1 | (4 | ) | |||||||||||
Loans repaid (issued) related to exercise of stock-based awards, net |
| 1 | 1 | 1 | ||||||||||||
Redemption of preferred stock warrants issued under TARP CPP |
| | (280 | ) | | |||||||||||
Stock-based compensation expense |
12 | 11 | 42 | 44 | ||||||||||||
Impact of cumulative effect of change in accounting principle |
| | | (77 | ) | |||||||||||
Noncontrolling interest |
21 | (1 | ) | 21 | 29 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total equity, endinq |
$ | 13,251 | $ | 14,080 | $ | 13,251 | $ | 14,080 | ||||||||
|
|
|
|
|
|
|
|
25
Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield Analysis
$ in millions, except share data
(unaudited)
For the Three Months Ended | % Change | |||||||||||||||||||
December 2011 |
September 2011 |
December 2010 |
Seq | Yr/Yr | ||||||||||||||||
Assets |
||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||
Commercial and industrial loans |
$ | 29,954 | $ | 28,824 | $ | 26,509 | 4 | % | 13 | % | ||||||||||
Commercial mortgage loans |
10,350 | 10,140 | 11,276 | 2 | % | (8 | %) | |||||||||||||
Commercial construction loans |
1,155 | 1,777 | 2,289 | (35 | %) | (50 | %) | |||||||||||||
Commercial leases |
3,352 | 3,300 | 3,314 | 2 | % | 1 | % | |||||||||||||
Residential mortgage loans |
12,638 | 11,224 | 10,693 | 13 | % | 18 | % | |||||||||||||
Home equity |
10,810 | 10,985 | 11,655 | (2 | %) | (7 | %) | |||||||||||||
Automobile loans |
11,696 | 11,445 | 10,825 | 2 | % | 8 | % | |||||||||||||
Credit card |
1,906 | 1,864 | 1,844 | 2 | % | 3 | % | |||||||||||||
Other consumer loans and leases |
417 | 454 | 743 | (8 | %) | (44 | %) | |||||||||||||
Taxable securities |
15,270 | 15,790 | 15,367 | (3 | %) | (1 | %) | |||||||||||||
Tax exempt securities |
58 | 64 | 268 | (9 | %) | (78 | %) | |||||||||||||
Other short-term investments |
1,915 | 2,288 | 2,431 | (16 | %) | (21 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total interest-earning assets |
99,521 | 98,155 | 97,214 | 1 | % | 2 | % | |||||||||||||
Cash and due from banks |
2,418 | 2,362 | 2,284 | 2 | % | 6 | % | |||||||||||||
Other assets |
15,758 | 15,381 | 15,449 | 2 | % | 2 | % | |||||||||||||
Allowance for loan and lease losses |
(2,429 | ) | (2,603 | ) | (3,089 | ) | (7 | %) | (21 | %) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 115,268 | $ | 113,295 | $ | 111,858 | 2 | % | 3 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities |
||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||
Interest checking |
$ | 19,263 | $ | 18,322 | $ | 17,578 | 5 | % | 10 | % | ||||||||||
Savings |
21,715 | 21,747 | 20,602 | | 5 | % | ||||||||||||||
Money market |
5,255 | 5,213 | 4,985 | 1 | % | 5 | % | |||||||||||||
Foreign office |
3,325 | 3,255 | 3,733 | 2 | % | (11 | %) | |||||||||||||
Other time |
4,960 | 6,008 | 8,490 | (17 | %) | (42 | %) | |||||||||||||
Certificates - $100,000 and over |
3,085 | 3,376 | 4,858 | (9 | %) | (36 | %) | |||||||||||||
Other |
16 | 7 | 9 | 147 | % | 92 | % | |||||||||||||
Federal funds purchased |
348 | 376 | 376 | (7 | %) | (7 | %) | |||||||||||||
Other short-term borrowings |
3,793 | 4,033 | 1,728 | (6 | %) | 119 | % | |||||||||||||
Long-term debt |
9,707 | 10,136 | 10,298 | (4 | %) | (6 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total interest-bearing liabilities |
71 ,467 | 72,473 | 72,657 | (1 | %) | (2 | %) | |||||||||||||
Demand deposits |
26,069 | 23,677 | 21,066 | 10 | % | 24 | % | |||||||||||||
Other liabilities |
4,536 | 4,275 | 4,099 | 6 | % | 11 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
102,072 | 100,425 | 97,822 | 2 | % | 4 | % | |||||||||||||
Equity |
13,196 | 12,870 | 14,036 | 3 | % | (6 | %) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities and equity |
$ | 115,268 | $ | 113,295 | $ | 111,858 | 2 | % | 3 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Yield Analysis |
||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||
Commercial and industrial loans |
4.28 | % | 4.29 | % | 4.64 | % | ||||||||||||||
Commercial mortgage loans |
3.89 | % | 3.94 | % | 4.17 | % | ||||||||||||||
Commercial construction loans |
3.04 | % | 3.02 | % | 2.90 | % | ||||||||||||||
Commercial leases |
3.87 | % | 3.87 | % | 4.21 | % | ||||||||||||||
Residential mortgage loans |
4.16 | % | 4.47 | % | 4.64 | % | ||||||||||||||
Home equity |
3.87 | % | 3.89 | % | 3.98 | % | ||||||||||||||
Automobile loans |
4.27 | % | 4.52 | % | 5.41 | % | ||||||||||||||
Credit card |
9.66 | % | 9.49 | % | 10.55 | % | ||||||||||||||
Other consumer loans and leases |
36.95 | % | 30.76 | % | 18.68 | % | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total loans and leases |
4.41 | % | 4.48 | % | 4.78 | % | ||||||||||||||
Taxable securities |
3.75 | % | 3.88 | % | 3.88 | % | ||||||||||||||
Tax exempt securities |
5.42 | % | 5.84 | % | 4.27 | % | ||||||||||||||
Other short-term investments |
0.24 | % | 0.25 | % | 0.25 | % | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total interest-earning assets |
4.23 | % | 4.28 | % | 4.52 | % | ||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||
Interest checking |
0.24 | % | 0.25 | % | 0.28 | % | ||||||||||||||
Savings |
0.23 | % | 0.25 | % | 0.45 | % | ||||||||||||||
Money market |
0.22 | % | 0.27 | % | 0.34 | % | ||||||||||||||
Foreign office |
0.25 | % | 0.26 | % | 0.34 | % | ||||||||||||||
Other time |
1.77 | % | 2.27 | % | 2.39 | % | ||||||||||||||
Certificates - $100,000 and over |
1.73 | % | 2.09 | % | 1.94 | % | ||||||||||||||
Other |
0.03 | % | 0.03 | % | 0.26 | % | ||||||||||||||
Federal funds purchased |
0.10 | % | 0.10 | % | 0.19 | % | ||||||||||||||
Other short-term borrowings |
0.10 | % | 0.10 | % | 0.19 | % | ||||||||||||||
Long-term debt |
3.09 | % | 2.85 | % | 2.72 | % | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total interest-bearing liabilities |
0.79 | % | 0.86 | % | 1.04 | % | ||||||||||||||
Ratios: |
||||||||||||||||||||
Net interest margin (taxable equivalent) |
3.67 | % | 3.65 | % | 3.75 | % | ||||||||||||||
Net interest rate spread (taxable equivalent) |
3.44 | % | 3.42 | % | 3.48 | % | ||||||||||||||
Interest-bearing liabilities to interest-earning assets |
71.81 | % | 73.83 | % | 74.74 | % |
26
Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield Analysis
$ in millions, except share data
(unaudited)
Year to Date | % Change | |||||||||||
December 2011 |
December 2010 |
Yr/Yr | ||||||||||
Assets |
||||||||||||
Interest-earning assets: |
||||||||||||
Commercial and industrial loans |
$ | 28,546 | $ | 26,334 | 8 | % | ||||||
Commercial mortgage loans |
10,447 | 11,585 | (10 | %) | ||||||||
Commercial construction loans |
1,740 | 3,066 | (43 | %) | ||||||||
Commercial leases |
3,341 | 3,343 | | |||||||||
Residential mortgage loans |
11,318 | 9,868 | 15 | % | ||||||||
Home equity |
11,077 | 11,996 | (8 | %) | ||||||||
Automobile loans |
11,352 | 10,427 | 9 | % | ||||||||
Credit card |
1,864 | 1,870 | | |||||||||
Other consumer loans and leases |
529 | 743 | (29 | %) | ||||||||
Taxable securities |
15,334 | 16,054 | (4 | %) | ||||||||
Tax exempt securities |
103 | 317 | (67 | %) | ||||||||
Other short-term investments |
2,031 | 3,328 | (39 | %) | ||||||||
|
|
|
|
|
|
|||||||
Total interest-earning assets |
97,682 | 98,931 | (1 | %) | ||||||||
Cash and due from banks |
2,352 | 2,245 | 5 | % | ||||||||
Other assets |
15,335 | 14,841 | 3 | % | ||||||||
Allowance for loan and lease losses |
(2,703 | ) | (3,583 | ) | (25 | %) | ||||||
|
|
|
|
|
|
|||||||
Total assets |
$ | 112,666 | $ | 112,434 | | |||||||
|
|
|
|
|
|
|||||||
Liabilities |
||||||||||||
Interest-bearing liabilities: |
||||||||||||
Interest checking |
$ | 18,707 | $ | 18,218 | 3 | % | ||||||
Savings |
21,652 | 19,612 | 10 | % | ||||||||
Money market |
5,154 | 4,808 | 7 | % | ||||||||
Foreign office |
3,490 | 3,355 | 4 | % | ||||||||
Other time |
6,260 | 10,526 | (41 | %) | ||||||||
Certificates - $100,000 and over |
3,656 | 6,083 | (40 | %) | ||||||||
Other |
7 | 6 | 6 | % | ||||||||
Federal funds purchased |
345 | 291 | 18 | % | ||||||||
Other short-term borrowings |
2,777 | 1,635 | 70 | % | ||||||||
Long-term debt |
10,154 | 10,902 | (7 | %) | ||||||||
|
|
|
|
|
|
|||||||
Total interest-bearing liabilities |
72,202 | 75,436 | (4 | %) | ||||||||
Demand deposits |
23,389 | 19,669 | 19 | % | ||||||||
Other liabilities |
4,189 | 3,580 | 17 | % | ||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
99,780 | 98,685 | 1 | % | ||||||||
Equity |
12,886 | 13,749 | (6 | %) | ||||||||
|
|
|
|
|
|
|||||||
Total liabilities and equity |
$ | 112,666 | $ | 112,434 | | |||||||
|
|
|
|
|
|
|||||||
Yield Analysis |
||||||||||||
Interest-earning assets: |
||||||||||||
Commercial and industrial loans |
4.34 | % | 4.70 | % | ||||||||
Commercial mortgage loans |
3.99 | % | 4.11 | % | ||||||||
Commercial construction loans |
3.06 | % | 3.01 | % | ||||||||
Commercial leases |
3.99 | % | 4.40 | % | ||||||||
Residential mortgage loans |
4.45 | % | 4.84 | % | ||||||||
Home equity |
3.91 | % | 4.00 | % | ||||||||
Automobile loans |
4.67 | % | 5.83 | % | ||||||||
Credit card |
9.86 | % | 10.73 | % | ||||||||
Other consumer loans and leases |
25.77 | % | 15.58 | % | ||||||||
|
|
|
|
|||||||||
Total loans and leases |
4.52 | % | 4.84 | % | ||||||||
Taxable securities |
3.89 | % | 4.05 | % | ||||||||
Tax exempt securities |
5.41 | % | 3.92 | % | ||||||||
Other short-term investments |
0.25 | % | 0.25 | % | ||||||||
|
|
|
|
|||||||||
Total interest-earning assets |
4.34 | % | 4.56 | % | ||||||||
Interest-bearing liabilities: |
||||||||||||
Interest checking |
0.26 | % | 0.29 | % | ||||||||
Savings |
0.31 | % | 0.55 | % | ||||||||
Money market |
0.27 | % | 0.40 | % | ||||||||
Foreign office |
0.28 | % | 0.35 | % | ||||||||
Other time |
2.23 | % | 2.62 | % | ||||||||
Certificates - $100,000 and over |
1.97 | % | 2.06 | % | ||||||||
Other |
0.03 | % | 0.13 | % | ||||||||
Federal funds purchased |
0.11 | % | 0.17 | % | ||||||||
Other short-term borrowings |
0.12 | % | 0.21 | % | ||||||||
Long-term debt |
3.01 | % | 2.65 | % | ||||||||
|
|
|
|
|||||||||
Total interest-bearing liabilities |
0.92 | % | 1.17 | % | ||||||||
Ratios: |
||||||||||||
Net interest margin (taxable equivalent) |
3.66 | % | 3.66 | % | ||||||||
Net interest rate spread (taxable equivalent) |
3.42 | % | 3.39 | % | ||||||||
Interest-bearing liabilities to interest-earning assets |
73.92 | % | 76.25 | % |
27
Fifth Third Bancorp and Subsidiaries
Average Balance Sheet and Yield Analysis
$ in millions, except share data
(unaudited)
For the Three Months Ended | ||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
||||||||||||||||
Assets |
||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||
Commercial and industrial loans |
$ | 29,954 | $ | 28,824 | $ | 27,970 | $ | 27,404 | $ | 26,509 | ||||||||||
Commercial mortgage loans |
10,350 | 10,140 | 10,491 | 10,816 | 11,276 | |||||||||||||||
Commercial construction loans |
1,155 | 1,777 | 1,950 | 2,085 | 2,289 | |||||||||||||||
Commercial leases |
3,352 | 3,300 | 3,349 | 3,364 | 3,314 | |||||||||||||||
Residential mortgage loans |
12,638 | 11,224 | 10,655 | 10,736 | 10,693 | |||||||||||||||
Home equity |
10,810 | 10,985 | 11,144 | 11,376 | 11,655 | |||||||||||||||
Automobile loans |
11,696 | 11,445 | 11,188 | 11,070 | 10,825 | |||||||||||||||
Credit card |
1,906 | 1,864 | 1,834 | 1,852 | 1,844 | |||||||||||||||
Other consumer loans and leases |
417 | 454 | 572 | 676 | 743 | |||||||||||||||
Taxable securities |
15,270 | 15,790 | 15,115 | 15,156 | 15,367 | |||||||||||||||
Tax exempt securities |
58 | 64 | 96 | 197 | 268 | |||||||||||||||
Other short-term investments |
1,915 | 2,288 | 1,981 | 1,937 | 2,431 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total interest-earning assets |
99,521 | 98,155 | 96,345 | 96,669 | 97,214 | |||||||||||||||
Cash and due from banks |
2,418 | 2,362 | 2,356 | 2,268 | 2,284 | |||||||||||||||
Other assets |
15,758 | 15,381 | 15,298 | 14,897 | 15,449 | |||||||||||||||
Allowance for loan and lease losses |
(2,429 | ) | (2,603 | ) | (2,799 | ) | (2,990 | ) | (3,089 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 115,268 | $ | 113,295 | $ | 111,200 | $ | 110,844 | $ | 111,858 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities |
||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||
Interest checking |
$ | 19,263 | $ | 18,322 | $ | 18,701 | $ | 18,539 | $ | 17,578 | ||||||||||
Savings |
21,715 | 21,747 | 21,817 | 21,324 | 20,602 | |||||||||||||||
Money market |
5,255 | 5,213 | 5,009 | 5,136 | 4,985 | |||||||||||||||
Foreign office |
3,325 | 3,255 | 3,805 | 3,580 | 3,733 | |||||||||||||||
Other time |
4,960 | 6,008 | 6,738 | 7,363 | 8,490 | |||||||||||||||
Certificates - $100,000 and over |
3,085 | 3,376 | 3,955 | 4,226 | 4,858 | |||||||||||||||
Other |
16 | 7 | 2 | 1 | 9 | |||||||||||||||
Federal funds purchased |
348 | 376 | 344 | 310 | 376 | |||||||||||||||
Other short-term borrowings |
3,793 | 4,033 | 1,605 | 1,638 | 1,728 | |||||||||||||||
Long-term debt |
9,707 | 10,136 | 10,527 | 10,255 | 10,298 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total interest-bearing liabilities |
71,467 | 72,473 | 72,503 | 72,372 | 72,657 | |||||||||||||||
Demand deposits |
26,069 | 23,677 | 22,174 | 21,582 | 21,066 | |||||||||||||||
Other liabilities |
4,536 | 4,275 | 4,129 | 3,809 | 4,099 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
102,072 | 100,425 | 98,806 | 97,763 | 97,822 | |||||||||||||||
Equity |
13,196 | 12,870 | 12,394 | 13,081 | 14,036 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities and equity |
$ | 115,268 | $ | 113,295 | $ | 111,200 | $ | 110,844 | $ | 111,858 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Yield Analysis |
||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||
Commercial and industrial loans |
4.28 | % | 4.29 | % | 4.35 | % | 4.45 | % | 4.64 | % | ||||||||||
Commercial mortgage loans |
3.89 | % | 3.94 | % | 4.00 | % | 4.11 | % | 4.17 | % | ||||||||||
Commercial construction loans |
3.04 | % | 3.02 | % | 3.01 | % | 3.15 | % | 2.90 | % | ||||||||||
Commercial leases |
3.87 | % | 3.87 | % | 4.06 | % | 4.17 | % | 4.21 | % | ||||||||||
Residential mortgage loans |
4.16 | % | 4.47 | % | 4.54 | % | 4.67 | % | 4.64 | % | ||||||||||
Home equity |
3.87 | % | 3.89 | % | 3.91 | % | 3.96 | % | 3.98 | % | ||||||||||
Automobile loans |
4.27 | % | 4.52 | % | 4.81 | % | 5.10 | % | 5.41 | % | ||||||||||
Credit card |
9.66 | % | 9.49 | % | 9.91 | % | 10.43 | % | 10.55 | % | ||||||||||
Other consumer loans and leases |
36.95 | % | 30.76 | % | 22.02 | % | 18.54 | % | 18.68 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total loans and leases |
4.41 | % | 4.48 | % | 4.54 | % | 4.67 | % | 4.78 | % | ||||||||||
Taxable securities |
3.75 | % | 3.88 | % | 3.97 | % | 3.96 | % | 3.88 | % | ||||||||||
Tax exempt securities |
5.42 | % | 5.84 | % | 6.41 | % | 4.77 | % | 4.27 | % | ||||||||||
Other short-term investments |
0.24 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total interest-earning assets |
4.23 | % | 4.28 | % | 4.37 | % | 4.47 | % | 4.52 | % | ||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||
Interest checking |
0.24 | % | 0.25 | % | 0.26 | % | 0.28 | % | 0.28 | % | ||||||||||
Savings |
0.23 | % | 0.25 | % | 0.33 | % | 0.43 | % | 0.45 | % | ||||||||||
Money market |
0.22 | % | 0.27 | % | 0.29 | % | 0.32 | % | 0.34 | % | ||||||||||
Foreign office |
0.25 | % | 0.26 | % | 0.29 | % | 0.31 | % | 0.34 | % | ||||||||||
Other time |
1.77 | % | 2.27 | % | 2.40 | % | 2.36 | % | 2.39 | % | ||||||||||
Certificates - $100,000 and over |
1.73 | % | 2.09 | % | 2.05 | % | 1.99 | % | 1.94 | % | ||||||||||
Other |
0.03 | % | 0.03 | % | 0.02 | % | 0.05 | % | 0.26 | % | ||||||||||
Federal funds purchased |
0.10 | % | 0.10 | % | 0.11 | % | 0.14 | % | 0.19 | % | ||||||||||
Other short-term borrowings |
0.10 | % | 0.10 | % | 0.16 | % | 0.19 | % | 0.19 | % | ||||||||||
Long-term debt |
3.09 | % | 2.85 | % | 3.16 | % | 2.95 | % | 2.72 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total interest-bearing liabilities |
0.79 | % | 0.86 | % | 1.00 | % | 1.02 | % | 1.04 | % | ||||||||||
Ratios: |
||||||||||||||||||||
Net interest margin (taxable equivalent) |
3.67 | % | 3.65 | % | 3.62 | % | 3.71 | % | 3.75 | % | ||||||||||
Net interest rate spread (taxable equivalent) |
3.44 | % | 3.42 | % | 3.37 | % | 3.45 | % | 3.48 | % | ||||||||||
Interest-bearing liabilities to interest-earning assets |
71.81 | % | 73.83 | % | 75.25 | % | 74.87 | % | 74.74 | % |
28
Fifth Third Bancorp and Subsidiaries
Summary of Loans and Leases
$ in millions
(unaudited)
For the Three Months Ended | ||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
||||||||||||||||
Average Loans and Leases |
||||||||||||||||||||
Commercial: |
||||||||||||||||||||
Commercial and industrial loans |
$ | 29,891 | $ | 28,777 | $ | 27,909 | $ | 27,331 | $ | 26,338 | ||||||||||
Commercial mortgage loans |
10,262 | 10,050 | 10,394 | 10,685 | 10,985 | |||||||||||||||
Commercial construction loans |
1,132 | 1,752 | 1,918 | 2,030 | 2,171 | |||||||||||||||
Commercial leases |
3,351 | 3,300 | 3,349 | 3,364 | 3,314 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal - commercial |
44,636 | 43,879 | 43,570 | 43,410 | 42,808 | |||||||||||||||
Consumer: |
||||||||||||||||||||
Residential mortgage loans |
10,464 | 10,006 | 9,654 | 9,282 | 8,382 | |||||||||||||||
Home equity |
10,810 | 10,985 | 11,144 | 11,376 | 11,655 | |||||||||||||||
Automobile loans |
11,696 | 11,445 | 11,188 | 11,070 | 10,825 | |||||||||||||||
Credit card |
1,906 | 1,864 | 1,834 | 1,852 | 1,844 | |||||||||||||||
Other consumer loans and leases |
402 | 441 | 547 | 646 | 722 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal - consumer |
35,278 | 34,741 | 34,367 | 34,226 | 33,428 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total average loans and leases (excluding held for sale) |
$ | 79,914 | $ | 78,620 | $ | 77,937 | $ | 77,636 | $ | 76,236 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Average loans held for sale |
2,364 | 1,393 | 1,216 | 1,743 | 2,912 | |||||||||||||||
End of Period Loans and Leases |
||||||||||||||||||||
Commercial: |
||||||||||||||||||||
Commercial and industrial loans |
$ | 30,783 | $ | 29,258 | $ | 28,099 | $ | 27,344 | $ | 27,191 | ||||||||||
Commercial mortgage loans |
10,138 | 10,330 | 10,233 | 10,510 | 10,845 | |||||||||||||||
Commercial construction loans |
1,020 | 1,213 | 1,778 | 1,980 | 2,048 | |||||||||||||||
Commercial leases |
3,531 | 3,368 | 3,326 | 3,367 | 3,378 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal - commercial |
45,472 | 44,169 | 43,436 | 43,201 | 43,462 | |||||||||||||||
Consumer: |
||||||||||||||||||||
Residential mortgage loans |
10,672 | 10,249 | 9,849 | 9,530 | 8,956 | |||||||||||||||
Home equity |
10,719 | 10,920 | 11,048 | 11,222 | 11,513 | |||||||||||||||
Automobile loans |
11,827 | 11,593 | 11,315 | 11,129 | 10,983 | |||||||||||||||
Credit card |
1,978 | 1,878 | 1,856 | 1,821 | 1,896 | |||||||||||||||
Other consumer loans and leases |
350 | 407 | 463 | 562 | 681 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal - consumer |
35,546 | 35,047 | 34,531 | 34,264 | 34,029 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total portfolio loans and leases |
$ | 81,018 | $ | 79,216 | $ | 77,967 | $ | 77,465 | $ | 77,491 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Core business activity |
2,816 | 1,643 | 1,009 | 1,076 | 1,922 | |||||||||||||||
Portfolio management activity |
138 | 197 | 176 | 216 | 294 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total loans held for sale |
2,954 | 1,840 | 1,185 | 1,291 | 2,216 | |||||||||||||||
Operating lease equipment |
497 | 462 | 492 | 513 | 479 | |||||||||||||||
Loans and Leases Serviced for Others (a): |
||||||||||||||||||||
Commercial and industrial loans |
606 | 640 | 602 | 547 | 490 | |||||||||||||||
Commercial mortgage loans |
286 | 301 | 304 | 328 | 337 | |||||||||||||||
Commercial construction loans |
64 | 67 | 67 | 56 | 55 | |||||||||||||||
Commercial leases |
166 | 94 | 104 | 118 | 125 | |||||||||||||||
Residential mortgage loans |
57,126 | 56,483 | 56,026 | 55,447 | 54,234 | |||||||||||||||
Home equity |
| | | | | |||||||||||||||
Automobile loans |
| | | | | |||||||||||||||
Credit card |
| | | | | |||||||||||||||
Other consumer loans and leases |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total loans and leases serviced for others |
58,248 | 57,585 | 57,103 | 56,496 | 55,241 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total loans and leases serviced |
$ | 142,717 | $ | 139,103 | $ | 136,747 | $ | 135,765 | $ | 135,427 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | Fifth Third sells certain loans and leases and obtains servicing responsibilities |
29
Fifth Third Bancorp and Subsidiaries
Regulatory Capital (a)
$ in millions
(unaudited)
As of | ||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
||||||||||||||||
Tier I capital: |
||||||||||||||||||||
Bancorp shareholders equity |
$ | 13,201 | $ | 13,029 | $ | 12,572 | $ | 12,162 | $ | 14,051 | ||||||||||
Goodwill and certain other intangibles |
(2,514 | ) | (2,514 | ) | (2,536 | ) | (2,546 | ) | (2,546 | ) | ||||||||||
Unrealized (gains) losses |
(470 | ) | (542 | ) | (396 | ) | (263 | ) | (314 | ) | ||||||||||
Qualifying trust preferred securities |
2,248 | 2,273 | 2,312 | 2,763 | 2,763 | |||||||||||||||
Other |
38 | 20 | 20 | 13 | 11 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total tier I capital |
$ | 12,503 | $ | 12,266 | $ | 11,972 | $ | 12,129 | $ | 13,965 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total risk-based capital: |
||||||||||||||||||||
Tier I capital |
$ | 12,503 | $ | 12,266 | $ | 11,972 | $ | 12,129 | $ | 13,965 | ||||||||||
Qualifying allowance for credit losses |
1,328 | 1,299 | 1,275 | 1,266 | 1,283 | |||||||||||||||
Qualifying subordinated notes |
3,054 | 3,098 | 2,837 | 2,780 | 2,930 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total risk-based capital |
$ | 16,885 | $ | 16,663 | $ | 16,084 | $ | 16,175 | $ | 18,178 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Risk-weighted assets (b) |
$ | 104,999 | $ | 102,562 | $ | 100,320 | $ | 99,392 | $ | 100,561 | ||||||||||
Ratios: |
||||||||||||||||||||
Average shareholders equity to average assets |
11.41 | % | 11.33 | % | 11.12 | % | 11.77 | % | 12.52 | % | ||||||||||
Regulatory capital: |
||||||||||||||||||||
Fifth Third Bancorp |
||||||||||||||||||||
Tier I capital |
11.91 | % | 11.96 | % | 11.93 | % | 12.20 | % | 13.89 | % | ||||||||||
Total risk-based capital |
16.08 | % | 16.25 | % | 16.03 | % | 16.27 | % | 18.08 | % | ||||||||||
Tier I leverage |
11.10 | % | 11.08 | % | 11.03 | % | 11.21 | % | 12.79 | % | ||||||||||
Tier I common equity |
9.34 | % | 9.33 | % | 9.20 | % | 8.99 | % | 7.48 | % | ||||||||||
Fifth Third Bank |
||||||||||||||||||||
Tier I capital |
12.01 | % | 12.32 | % | 13.26 | % | 13.61 | % | 13.13 | % | ||||||||||
Total risk-based capital |
13.61 | % | 14.18 | % | 15.13 | % | 15.49 | % | 15.12 | % | ||||||||||
Tier I leverage |
11.20 | % | 11.40 | % | 12.25 | % | 12.49 | % | 12.08 | % | ||||||||||
Tier I common equity |
12.01 | % | 12.32 | % | 13.26 | % | 13.61 | % | 13.13 | % |
(a) | Current period regulatory capital data and ratios are estimated. |
(b) | Under the banking agencies risk-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned to broad risk categories. The aggregate dollar amount in each risk category is multiplied by the associated risk weight of the category. The resulting weighted values are added together resulting in the Bancorps total risk weighted assets. |
30
Fifth Third Bancorp and Subsidiaries
Summary of Credit Loss Experience
$ in millions
(unaudited)
For the Three Months Ended | ||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
||||||||||||||||
Average loans and leases (excluding held for sale): |
||||||||||||||||||||
Commercial and industrial loans |
$ | 29,891 | $ | 28,777 | $ | 27,909 | $ | 27,331 | $ | 26,338 | ||||||||||
Commercial mortgage loans |
10,262 | 10,050 | 10,394 | 10,685 | 10,985 | |||||||||||||||
Commercial construction loans |
1,132 | 1,752 | 1,918 | 2,030 | 2,171 | |||||||||||||||
Commercial leases |
3,351 | 3,300 | 3,349 | 3,364 | 3,314 | |||||||||||||||
Residential mortgage loans |
10,464 | 10,006 | 9,654 | 9,282 | 8,382 | |||||||||||||||
Home equity |
10,810 | 10,985 | 11,144 | 11,376 | 11,655 | |||||||||||||||
Automobile loans |
11,696 | 11 ,445 | 11,188 | 11,070 | 10,825 | |||||||||||||||
Credit card |
1,906 | 1,864 | 1,834 | 1,852 | 1,844 | |||||||||||||||
Other consumer loans and leases |
402 | 441 | 547 | 646 | 722 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total average loans and leases (excluding held for sale) |
$ | 79,914 | $ | 78,620 | $ | 77,937 | $ | 77,636 | $ | 76,236 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Losses charged off: |
||||||||||||||||||||
Commercial and industrial loans |
($ | 76 | ) | ($ | 62 | ) | ($ | 86 | ) | ($ | 90 | ) | ($ | 98 | ) | |||||
Commercial mortgage loans |
(53 | ) | (49 | ) | (51 | ) | (58 | ) | (83 | ) | ||||||||||
Commercial construction loans |
(6 | ) | (35 | ) | (21 | ) | (27 | ) | (15 | ) | ||||||||||
Commercial leases |
(1 | ) | | | (1 | ) | (1 | ) | ||||||||||||
Residential mortgage loans |
(38 | ) | (38 | ) | (37 | ) | (67 | ) | (63 | ) | ||||||||||
Home equity |
(54 | ) | (56 | ) | (58 | ) | (66 | ) | (68 | ) | ||||||||||
Automobile loans |
(20 | ) | (19 | ) | (18 | ) | (28 | ) | (28 | ) | ||||||||||
Credit card |
(25 | ) | (26 | ) | (31 | ) | (33 | ) | (35 | ) | ||||||||||
Other consumer loans and leases |
(7 | ) | (9 | ) | (41 | ) | (27 | ) | (8 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total losses |
(280 | ) | (294 | ) | (343 | ) | (397 | ) | (399 | ) | ||||||||||
Recoveries of losses previously charged off: |
||||||||||||||||||||
Commercial and industrial loans |
14 | 7 | 10 | 7 | 13 | |||||||||||||||
Commercial mortgage loans |
6 | 2 | 4 | 4 | 3 | |||||||||||||||
Commercial construction loans |
2 | | 1 | 1 | 4 | |||||||||||||||
Commercial leases |
1 | 1 | 2 | | 4 | |||||||||||||||
Residential mortgage loans |
2 | 2 | 1 | 2 | 1 | |||||||||||||||
Home equity |
4 | 3 | 4 | 3 | 3 | |||||||||||||||
Automobile loans |
7 | 7 | 10 | 8 | 9 | |||||||||||||||
Credit card |
4 | 8 | 3 | 2 | 2 | |||||||||||||||
Other consumer loans and leases |
1 | 2 | 4 | 3 | 4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total recoveries |
41 | 32 | 39 | 30 | 43 | |||||||||||||||
Net losses charged off: |
||||||||||||||||||||
Commercial and industrial loans |
(62 | ) | (55 | ) | (76 | ) | (83 | ) | (85 | ) | ||||||||||
Commercial mortgage loans |
(47 | ) | (47 | ) | (47 | ) | (54 | ) | (80 | ) | ||||||||||
Commercial construction loans |
(4 | ) | (35 | ) | (20 | ) | (26 | ) | (11 | ) | ||||||||||
Commercial leases |
| 1 | 2 | (1 | ) | 3 | ||||||||||||||
Residential mortgage loans |
(36 | ) | (36 | ) | (36 | ) | (65 | ) | (62 | ) | ||||||||||
Home equity |
(50 | ) | (53 | ) | (54 | ) | (63 | ) | (65 | ) | ||||||||||
Automobile loans |
(13 | ) | (12 | ) | (8 | ) | (20 | ) | (19 | ) | ||||||||||
Credit card |
(21 | ) | (18 | ) | (28 | ) | (31 | ) | (33 | ) | ||||||||||
Other consumer loans and leases |
(6 | ) | (7 | ) | (37 | ) | (24 | ) | (4 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total net losses charged off |
($ | 239 | ) | ($ | 262 | ) | ($ | 304 | ) | ($ | 367 | ) | ($ | 356 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net charge-off Ratios: |
||||||||||||||||||||
Commercial and industrial loans |
0.82 | % | 0.76 | % | 1.10 | % | 1.22 | % | 1.27 | % | ||||||||||
Commercial mortgage loans |
1.82 | % | 1.86 | % | 1.83 | % | 2.04 | % | 2.86 | % | ||||||||||
Commercial construction loans |
1.37 | % | 7.90 | % | 4.09 | % | 5.24 | % | 1.88 | % | ||||||||||
Commercial leases |
(0.01 | %) | (0.12 | %) | (0.25 | %) | 0.04 | % | (0.34 | %) | ||||||||||
Residential mortgage loans |
1.38 | % | 1.41 | % | 1.50 | % | 2.82 | % | 2.93 | % | ||||||||||
Home equity |
1.83 | % | 1.89 | % | 1.94 | % | 2.23 | % | 2.20 | % | ||||||||||
Automobile loans |
0.44 | % | 0.41 | % | 0.29 | % | 0.73 | % | 0.68 | % | ||||||||||
Credit card |
4.29 | % | 3.86 | % | 6.08 | % | 6.60 | % | 7.12 | % | ||||||||||
Other consumer loans and leases |
6.75 | % | 6.67 | % | 26.47 | % | 17.16 | % | 4.09 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total net charge-off ratio |
1.19 | % | 1.32 | % | 1.56 | % | 1.92 | % | 1.86 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
31
Fifth Third Bancorp and Subsidiaries
Asset Quality
$ in millions
(unaudited)
For the Three Months Ended | ||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
Decmeber 2010 |
||||||||||||||||
Allowance for Credit Losses |
||||||||||||||||||||
Allowance for loan and lease losses, beginning |
$ | 2,439 | $ | 2,614 | $ | 2,805 | $ | 3,004 | $ | 3,194 | ||||||||||
Total net losses charged off |
(239 | ) | (262 | ) | (304 | ) | (367 | ) | (356 | ) | ||||||||||
Provision for loan and lease losses |
55 | 87 | 113 | 168 | 166 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Allowance for loan and lease losses, ending |
$ | 2,255 | $ | 2,439 | $ | 2,614 | $ | 2,805 | $ | 3,004 | ||||||||||
Reserve for unfunded commitments, beginning |
$ | 187 | $ | 197 | $ | 211 | $ | 227 | $ | 231 | ||||||||||
Provision for unfunded commitments |
(6 | ) | (10 | ) | (14 | ) | (16 | ) | (4 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reserve for unfunded commitments, ending |
$ | 181 | $ | 187 | $ | 197 | $ | 211 | $ | 227 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Components of allowance for credit losses: |
||||||||||||||||||||
Allowance for loan and lease losses |
$ | 2,255 | $ | 2,439 | $ | 2,614 | $ | 2,805 | $ | 3,004 | ||||||||||
Reserve for unfunded commitments |
181 | 187 | 197 | 211 | 227 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total allowance for credit losses |
$ | 2,436 | $ | 2,626 | $ | 2,811 | $ | 3,016 | $ | 3,231 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nonperforming Assets and Delinquent Loans |
||||||||||||||||||||
Nonaccrual portfolio loans and leases: |
||||||||||||||||||||
Commercial and industrial loans |
$ | 408 | $ | 449 | $ | 485 | $ | 477 | $ | 473 | ||||||||||
Commercial mortgage loans |
358 | 353 | 417 | 415 | 407 | |||||||||||||||
Commercial construction loans |
123 | 151 | 147 | 159 | 182 | |||||||||||||||
Commercial leases |
9 | 13 | 16 | 11 | 11 | |||||||||||||||
Residential mortgage loans |
134 | 142 | 145 | 140 | 152 | |||||||||||||||
Home equity |
25 | 25 | 26 | 24 | 23 | |||||||||||||||
Automobile loans |
| | 1 | 1 | 1 | |||||||||||||||
Other consumer loans and leases |
1 | 1 | 3 | 60 | 84 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonaccrual portfolio loans and leases |
1,058 | 1,134 | 1,240 | 1,287 | 1,333 | |||||||||||||||
Restructured loans and leases - commercial (non accrual) |
160 | 189 | 188 | 149 | 141 | |||||||||||||||
Restructured loans and leases - consumer (non accrual) |
220 | 215 | 211 | 209 | 206 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonperforming portfolio loans and leases |
1,438 | 1,538 | 1,639 | 1,645 | 1,680 | |||||||||||||||
Repossessed property |
14 | 17 | 15 | 20 | 27 | |||||||||||||||
Other real estate owned |
364 | 389 | 434 | 461 | 467 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonperforming assets (a) |
1,816 | 1,944 | 2,088 | 2,126 | 2,174 | |||||||||||||||
Nonaccrual loans held for sale |
131 | 171 | 147 | 184 | 247 | |||||||||||||||
Restructured loans - commercial (non accrual) held for sale |
7 | 26 | 29 | 32 | 47 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonperforming assets including loans held for sale |
$ | 1,954 | $ | 2,141 | $ | 2,264 | $ | 2,342 | $ | 2,468 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Restructured portfolio consumer loans and leases (accrual) |
$ | 1,612 | $ | 1,601 | $ | 1,593 | $ | 1,573 | $ | 1,560 | ||||||||||
Restructured portfolio commercial loans and leases (accrual) |
$ | 390 | $ | 349 | $ | 266 | $ | 243 | $ | 228 | ||||||||||
Ninety days past due loans and leases: |
||||||||||||||||||||
Commercial and industrial loans |
$ | 4 | $ | 9 | $ | 7 | $ | 8 | $ | 16 | ||||||||||
Commercial mortgage loans |
3 | 10 | 12 | 8 | 11 | |||||||||||||||
Commercial construction loans |
1 | 43 | 48 | 23 | 3 | |||||||||||||||
Commercial leases |
| 1 | 1 | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total commercial loans and leases |
8 | 63 | 68 | 39 | 30 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential mortgage loans |
79 | 91 | 87 | 98 | 100 | |||||||||||||||
Home equity |
74 | 83 | 84 | 84 | 89 | |||||||||||||||
Automobile loans |
9 | 9 | 10 | 9 | 13 | |||||||||||||||
Credit card |
30 | 28 | 30 | 36 | 42 | |||||||||||||||
Other consumer loans and leases |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total consumer loans and leases |
192 | 211 | 211 | 227 | 244 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total ninety days past due loans and leases |
$ | 200 | $ | 274 | $ | 279 | $ | 266 | $ | 274 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios |
||||||||||||||||||||
Net losses charged off as a percent of average loans and leases |
1.19 | % | 1.32 | % | 1.56 | % | 1.92 | % | 1.86 | % | ||||||||||
Allowance for loan and lease losses: |
||||||||||||||||||||
As a percent of loans and leases |
2.78 | % | 3.08 | % | 3.35 | % | 3.62 | % | 3.88 | % | ||||||||||
As a percent of nonperforming loans and leases (a) |
157 | % | 158 | % | 160 | % | 170 | % | 179 | % | ||||||||||
As a percent of nonperforming assets (a) |
124 | % | 125 | % | 125 | % | 132 | % | 138 | % | ||||||||||
Nonperforming loans and leases as a percent of portfolio loans, leases and other assets, including other real estate owned (a) |
1.76 | % | 1.93 | % | 2.09 | % | 2.11 | % | 2.15 | % | ||||||||||
Nonperforming assets as a percent of portfolio loans, leases and other assets, including other real estate owned (a) |
2.23 | % | 2.44 | % | 2.66 | % | 2.73 | % | 2.79 | % | ||||||||||
Nonperforming assets as a percent of total loans, leases and other assets, including other real estate owned |
2.32 | % | 2.64 | % | 2.84 | % | 2.96 | % | 3.08 | % |
(a) | Does not include nonaccrual loans held for sale |
32
Fifth Third Bancorp and Subsidiaries
Regulation G Non-GAAP Reconcilation
$ and shares in millions
(unaudited)
For the Three Months Ended | ||||||||||||||||||||
December 2011 |
September 2011 |
June 2011 |
March 2011 |
December 2010 |
||||||||||||||||
Income before income taxes (U.S. GAAP) |
418 | 530 | 506 | 377 | 417 | |||||||||||||||
Add: Provision expense (U.S. GAAP) |
55 | 87 | 113 | 168 | 166 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Pre-provision net revenue |
473 | 617 | 619 | 545 | 583 | |||||||||||||||
Net income available to common shareholders (U.S. GAAP) |
305 | 373 | 328 | 88 | 270 | |||||||||||||||
Add: Intangible amortization, net of tax |
3 | 3 | 4 | 5 | 7 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tangible net income available to common shareholders |
308 | 376 | 332 | 93 | 277 | |||||||||||||||
Tangible net income available to common shareholders (annualized) (a) |
1,222 | 1,492 | 1,332 | 377 | 1,099 | |||||||||||||||
Average Bancorp shareholders equity (U.S. GAAP) |
13,147 | 12,841 | 12,365 | 13,052 | 14,007 | |||||||||||||||
Less: Average preferred stock |
398 | 398 | 398 | 1,557 | 3,648 | |||||||||||||||
Average goodwill |
2,417 | 2,417 | 2,417 | 2,417 | 2,417 | |||||||||||||||
Average intangible assets |
42 | 47 | 52 | 59 | 67 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Average tangible common equity (b) |
10,290 | 9,979 | 9,498 | 9,019 | 7,875 | |||||||||||||||
Total Bancorp shareholders equity (U.S. GAAP) |
13,201 | 13,029 | 12,572 | 12,163 | 14,051 | |||||||||||||||
Less: Preferred stock |
(398 | ) | (398 | ) | (398 | ) | (398 | ) | (3,654 | ) | ||||||||||
Goodwill |
(2,417 | ) | (2,417 | ) | (2,417 | ) | (2,417 | ) | (2,417 | ) | ||||||||||
Intangible assets |
(40 | ) | (45 | ) | (49 | ) | (55 | ) | (62 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tangible common equity, including unrealized gains / losses (c) |
10,346 | 10,169 | 9,708 | 9,293 | 7,918 | |||||||||||||||
Less: Accumulated other comprehensive income / loss |
(470 | ) | (542 | ) | (396 | ) | (263 | ) | (314 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tangible common equity, excluding unrealized gains / losses (d) |
9,876 | 9,627 | 9,312 | 9,030 | 7,604 | |||||||||||||||
Add: Preferred stock |
398 | 398 | 398 | 398 | 3,654 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tangible equity (e) |
10,274 | 10,025 | 9,710 | 9,428 | 11,258 | |||||||||||||||
Total assets (U.S. GAAP) |
116,967 | 114,905 | 110,805 | 110,485 | 111,007 | |||||||||||||||
Less: Goodwill |
(2,417 | ) | (2,417 | ) | (2,417 | ) | (2,417 | ) | (2,417 | ) | ||||||||||
Intangible assets |
(40 | ) | (45 | ) | (49 | ) | (55 | ) | (62 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tangible assets, including unrealized gains / losses (f) |
114,510 | 112,443 | 108,339 | 108,013 | 108,528 | |||||||||||||||
Less: Accumulated other comprehensive income / loss, before tax |
(723 | ) | (834 | ) | (609 | ) | (405 | ) | (483 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tangible assets, excluding unrealized gains / losses (g) |
113,787 | 111,609 | 107,730 | 107,608 | 108,045 | |||||||||||||||
Total Bancorp shareholders equity (U.S. GAAP) |
13,201 | 13,029 | 12,572 | 12,163 | 14,051 | |||||||||||||||
Goodwill and certain other intangibles |
(2,514 | ) | (2,514 | ) | (2,536 | ) | (2,546 | ) | (2,546 | ) | ||||||||||
Unrealized gains |
(470 | ) | (542 | ) | (396 | ) | (263 | ) | (314 | ) | ||||||||||
Qualifying trust preferred securities |
2,248 | 2,273 | 2,312 | 2,763 | 2,763 | |||||||||||||||
Other |
38 | 20 | 20 | 12 | 11 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tier I capital |
12,503 | 12,266 | 11,972 | 12,129 | 13,965 | |||||||||||||||
Less: Preferred stock |
(398 | ) | (398 | ) | (398 | ) | (398 | ) | (3,654 | ) | ||||||||||
Qualifying trust preferred securities |
(2,248 | ) | (2,273 | ) | (2,312 | ) | (2,763 | ) | (2,763 | ) | ||||||||||
Qualifying noncontrolling interest in consolidated subsidiaries |
(50 | ) | (30 | ) | (30 | ) | (30 | ) | (30 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tier I common equity (h) |
9,807 | 9,565 | 9,232 | 8,938 | 7,518 | |||||||||||||||
Unrealized gains |
470 | 542 | ||||||||||||||||||
Disallowed deferred tax assets |
| | ||||||||||||||||||
Disallowed MSRs |
70 | 64 | ||||||||||||||||||
Other |
12 | 10 | ||||||||||||||||||
Less: 10% of individual deferred tax assets, MSRs, investment in financial entities |
| | ||||||||||||||||||
15% of aggregate deferred tax assets, MSRs, investment in financial entities |
| | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Tier I common equity, Basel III proforma (i) |
10,359 | 10,181 | ||||||||||||||||||
Common shares outstanding (j) |
920 | 920 | 920 | 919 | 796 | |||||||||||||||
Risk-weighted assets, determined in accordance with prescribed regulatory requirements (k) |
104,999 | 102,560 | 100,320 | 99,392 | 100,561 | |||||||||||||||
Add: Regulatory deductions not deducted from Tier 1 common equity, risk-weighted at 250% |
1,453 | 1,377 | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Risk-weighted assets, Basel III proforma (I) |
106,452 | 103,937 | ||||||||||||||||||
Ratios: |
||||||||||||||||||||
Return on average tangible common equity (a) / (b) |
11.88 | % | 14.95 | % | 14.02 | % | 4.18 | % | 13.95 | % | ||||||||||
Tangible equity (e) / (g) |
9.03 | % | 8.98 | % | 9.01 | % | 8.76 | % | 10.42 | % | ||||||||||
Tangible common equity (excluding unrealized gains/losses) (d) / (g) |
8.68 | % | 8.63 | % | 8.64 | % | 8.39 | % | 7.04 | % | ||||||||||
Tangible common equity (including unrealized gains/losses) (c) / (f) |
9.04 | % | 9.04 | % | 8.96 | % | 8.60 | % | 7.30 | % | ||||||||||
Tangible common equity as a percent of risk-weighted assets (excluding unrealized gains/losses) (d) / (k) |
9.41 | % | 9.39 | % | 9.28 | % | 9.09 | % | 7.56 | % | ||||||||||
Tangible book value per share (c) / (j) |
$ | 11.25 | $ | 11.05 | $ | 10.55 | $ | 10.11 | $ | 9.94 | ||||||||||
Tier I common equity (h) / (k) |
9.34 | % | 9.33 | % | 9.20 | % | 8.99 | % | 7.48 | % | ||||||||||
Tier I common equity, Basel III proforma (i) / (I) |
9.73 | % | 9.80 | % |
33
Fifth Third Bancorp and Subsidiaries
Segment Presentation
$ in millions
(unaudited)
For the three months ended December 31 , 201 1 |
Commercial Banking |
Branch Banking |
Consumer Lending |
Investment Advisors |
Other/ Eliminations |
Total | ||||||||||||||||||
Net interest income (a) |
359 | 365 | 87 | 28 | 81 | 920 | ||||||||||||||||||
Provision for loan and lease losses |
(88 | ) | (92 | ) | (56 | ) | (1 | ) | 182 | (55 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net interest income after provision for loan and lease losses |
271 | 273 | 31 | 27 | 263 | 865 | ||||||||||||||||||
Total noninterest income |
144 | 205 | 157 | 88 | (44 | ) | 550 | |||||||||||||||||
Total noninterest expense |
(270 | ) | (387 | ) | (171 | ) | (104 | ) | (61 | ) | (993 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income before taxes |
145 | 91 | 17 | 11 | 158 | 422 | ||||||||||||||||||
Applicable income taxes (a) |
(13 | ) | (32 | ) | (6 | ) | (4 | ) | (53 | ) | (108 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
132 | 59 | 11 | 7 | 105 | 314 | ||||||||||||||||||
Net income (loss) attributable to noncontrolling interest |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income attributable to Bancorp |
132 | 59 | 11 | 7 | 105 | 314 | ||||||||||||||||||
Dividends on preferred stock |
| | | | 9 | 9 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income available to common shareholders |
132 | 59 | 11 | 7 | 96 | 305 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
For the three months ended September 30, 201 1 |
Commercial Banking |
Branch Banking |
Consumer Lending |
Investment Advisors |
Other/ Eliminations |
Total | ||||||||||||||||||
Net interest income (a) |
345 | 359 | 85 | 28 | 85 | 902 | ||||||||||||||||||
Provision for loan and lease losses |
(104 | ) | (87 | ) | (55 | ) | (15 | ) | 174 | (87 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net interest income after provision for loan and lease losses |
241 | 272 | 30 | 13 | 259 | 815 | ||||||||||||||||||
Total noninterest income |
159 | 215 | 191 | 92 | 8 | 665 | ||||||||||||||||||
Total noninterest expense |
(262 | ) | (399 | ) | (158 | ) | (105 | ) | (22 | ) | (946 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) before taxes |
138 | 88 | 63 | | 245 | 534 | ||||||||||||||||||
Applicable income taxes (a) |
(10 | ) | (31 | ) | (22 | ) | | (90 | ) | (153 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) |
128 | 57 | 41 | | 155 | 381 | ||||||||||||||||||
Net income (loss) attributable to noncontrolling interest |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) attributable to Bancorp |
128 | 57 | 41 | | 155 | 381 | ||||||||||||||||||
Dividends on preferred stock |
| | | | 8 | 8 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) available to common shareholders |
128 | 57 | 41 | | 163 | 373 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
For the three months ended June 30, 201 1 |
Commercial Banking |
Branch Banking |
Consumer Lending |
Investment Advisors |
Other/ Eliminations |
Total | ||||||||||||||||||
Net interest income (a) |
339 | 359 | 81 | 28 | 62 | 869 | ||||||||||||||||||
Provision for loan and lease losses |
(147 | ) | (98 | ) | (55 | ) | (4 | ) | 191 | (113 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net interest income after provision for loan and lease losses |
192 | 261 | 26 | 24 | 253 | 756 | ||||||||||||||||||
Total noninterest income |
163 | 213 | 167 | 95 | 18 | 656 | ||||||||||||||||||
Total noninterest expense |
(280 | ) | (393 | ) | (147 | ) | (104 | ) | 23 | (901 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) before taxes |
75 | 81 | 46 | 15 | 294 | 511 | ||||||||||||||||||
Applicable income taxes (a) |
11 | (29 | ) | (16 | ) | (5 | ) | (135 | ) | (174 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) |
86 | 52 | 30 | 10 | 159 | 337 | ||||||||||||||||||
Net income (loss) attributable to noncontrolling interest |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) attributable to Bancorp |
86 | 52 | 30 | | 159 | 337 | ||||||||||||||||||
Dividends on preferred stock |
| | | | 9 | 9 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) available to common shareholders |
172 | 104 | 60 | 10 | 150 | 328 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
For the three months ended March 31 , 201 1 |
Commercial Banking |
Branch Banking |
Consumer Lending |
Investment Advisors |
Other/ Eliminations |
Total | ||||||||||||||||||
Net interest income (a) |
333 | 336 | 93 | 28 | 94 | 884 | ||||||||||||||||||
Provision for loan and lease losses |
(152 | ) | (113 | ) | (97 | ) | (5 | ) | 199 | (168 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net interest income after provision for loan and lease losses |
181 | 223 | (4 | ) | 23 | 293 | 716 | |||||||||||||||||
Total noninterest income |
175 | 201 | 116 | 98 | (6 | ) | 584 | |||||||||||||||||
Total noninterest expense |
(274 | ) | (392 | ) | (157 | ) | (107 | ) | 12 | (918 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) before taxes |
82 | 32 | (45 | ) | 14 | 299 | 382 | |||||||||||||||||
Applicable income taxes (a) |
7 | (11 | ) | 16 | (5 | ) | (124 | ) | (117 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) |
89 | 21 | (29 | ) | 9 | 175 | 265 | |||||||||||||||||
Net income (loss) attributable to noncontrolling interest |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) attributable to Bancorp |
89 | 21 | (29 | ) | 9 | 175 | 265 | |||||||||||||||||
Dividends on preferred stock |
| | | | 177 | 177 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) available to common shareholders |
89 | 21 | (29 | ) | 9 | (2 | ) | 88 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
For the three months ended December 31 , 201 0 |
Commercial Banking |
Branch Banking |
Consumer Lending |
Investment Advisors |
Other/ Eliminations |
Total | ||||||||||||||||||
Net interest income (a) |
390 | 360 | 106 | 29 | 34 | 919 | ||||||||||||||||||
Provision for loan and lease losses |
(135 | ) | (120 | ) | (90 | ) | (11 | ) | 190 | (166 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net interest income after provision for loan and lease losses |
255 | 240 | 16 | 18 | 224 | 753 | ||||||||||||||||||
Total noninterest income |
170 | 220 | 164 | 90 | 12 | 656 | ||||||||||||||||||
Total noninterest expense |
(259 | ) | (393 | ) | (155 | ) | (108 | ) | (72 | ) | (987 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income before taxes |
166 | 67 | 25 | | 164 | 422 | ||||||||||||||||||
Applicable income taxes (a) |
(17 | ) | (26 | ) | (6 | ) | | (39 | ) | (88 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
149 | 41 | 19 | | 125 | 334 | ||||||||||||||||||
Net income attributable to noncontrolling interest |
| | | | 1 | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income attributable to Bancorp |
149 | 41 | 19 | | 124 | 333 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Dividends on preferred stock |
| | | | 63 | 63 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income available to common shareholders |
149 | 41 | 19 | | 61 | 270 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Includes taxable equivalent adjustments of $4 million for the three months ended December 31 , 2011 , $4 million for the three months ended September 30, 2011 , $5 million for the three months ended June 30, 2011, $5 million for the three months ended March 31, 2011 and $5 for the three months ended December 31, 2010. |
34
Fifth Third Bank | All Rights Reserved
4Q11 Earnings Conference Call
January 20, 2012
Please refer to earnings release dated January 20, 2012 for further
information. Exhibit 99.2 |
2
Fifth Third Bank | All Rights Reserved
Cautionary statement |
3
Fifth Third Bank | All Rights Reserved
4Q11 in review
Credit continuing to improve
Net charge-offs of $239mm (1.19% of loans and leases) declined
$23mm, or 9%, sequentially to lowest level since 4Q07
Total NPAs of $2.0B including held-for-sale declined $187mm or 9%
sequentially to lowest level since 1Q08
Provision expense of $55mm, reduction in allowance of $184mm
Loan loss allowance 2.78% of loans; coverage 124% of NPAs, 157% of
NPLs, and 2.4x annualized fourth quarter net charge-offs
Actions driving progress
Continued investments to maintain and enhance revenue generation;
disciplined expense control
Focus on credit quality, portfolio management, and loss mitigation
strategies
Executing on customer experience and employee engagement initiatives
Enhancing breadth and profitability of offerings and relationships
Continued strong operating results
Net income available to common shareholders of $305mm, or $0.33
per diluted share
1.1% ROA; 12% ROTCE^
Pre-provision net revenue^ of $473mm, down 23% sequentially
Average and end of period loans and leases* up 2% sequentially;
average transaction deposits up 5% sequentially
Strong
capital
ratios:
Tier
1
common^
9.3%,
Tier
1
capital
ratio
11.9%,
Total capital ratio 16.1%**
Tangible book value per share^ growth 2% from 3Q11, 13% from 4Q10
^
Non-GAAP
measure.
See
Reg.
G
reconciliation
on
slides
34-35.
* Excluding loans held-for-sale
** Current period regulatory capital data ratios are estimated
|
4
Fifth Third Bank | All Rights Reserved
Financial summary
4Q11 earnings of $0.33 per diluted share driven by strong core performance and
improved credit results
Included $68mm of pretax charges in 4Q11 associated with Visa total return swap and
increased bankcard association litigation reserves
1.1% return on average assets; 12% return on average tangible common equity^
Average transaction deposits up 5%; core deposits up 3% sequentially
Average loans* up 5% from 4Q10, reflecting strength in C&I, mortgage, and auto
loans Actual
Seq.
YOY
($ in millions)
4Q10
3Q11
4Q11
$
%
$
%
Average Balances
Commercial loans*
$42,808
$43,879
$44,636
$757
2%
$1,828
4%
Consumer loans*
33,428
34,741
35,278
537
2%
1,850
6%
Total loans & leases*
$76,236
$78,620
$79,914
$1,294
2%
$3,678
5%
Core deposits
$76,454
$78,222
$80,587
$2,365
3%
$4,133
5%
Income Statement Data
Net interest income (taxable equivalent)
$919
$902
$920
$18
2%
$1
-
Provision for loan and lease losses
166
87
55
(32)
(36%)
(111)
(67%)
Noninterest income
656
665
550
(115)
(17%)
(106)
(16%)
Noninterest expense
987
946
993
47
5%
6
1%
Net Income
$333
$381
$314
($67)
(18%)
($19)
(6%)
Net income available to common shareholders
$270
$373
$305
($68)
(18%)
$35
13%
Pre-provision net revenue^
$583
$617
$473
($144)
(23%)
($110)
(19%)
Earnings per share, basic
$0.34
$0.41
$0.33
($0.08)
(20%)
($0.01)
(3%)
Earnings per share, diluted
$0.33
$0.40
$0.33
($0.07)
(18%)
-
-
Net interest margin
3.75%
3.65%
3.67%
2bps
1%
(8bps)
(2%)
Return on average assets
1.18%
1.34%
1.08%
(26bps)
(19%)
(10bps)
(8%)
Return on average tangible common equity^
13.9%
14.9%
11.9%
~(300bps)
(20%)
~(200bps)
(14%)
^ Non-GAAP measure. See Reg. G reconciliation on slides 34-35.
* Excluding loans held-for-sale |
5
Fifth Third Bank | All Rights Reserved
Net interest income
NII and NIM (FTE)
Sequential net interest income trends reflected growth in C&I, residential
mortgage, auto, and bankcard loan balances, which more than offset lower
yields on loans and lower reinvestment rates on securities reflecting the
current interest rate environment
NII up $18mm, or 2%, sequentially and up $1mm year-over-year
NIM up 2 bps sequentially and down 8 bps year-over-year
Yield on interest-earning assets declined 5 bps sequentially and 29 bps
year-over-year * Represents purchase accounting adjustments included
in net interest income. |
6
Fifth Third Bank | All Rights Reserved
Balance sheet
C&I loans up 4% sequentially and 13% from 4Q10
CRE loans down 3% sequentially and 13% from 4Q10
Consumer loans up 2% sequentially and 6% from 4Q10
Warehoused residential mortgage loans held-for-sale were $2.2B in
4Q11 versus $1.2B in 3Q11
Core deposit to loan ratio of 101%, up 1% from 4Q10
DDAs up 10% sequentially and 24% year-over-year
Retail average transaction deposits up 3% sequentially and 12%
from the previous year, driven by growth in demand deposit,
interest checking, and MMDA balances
Commercial average transaction deposits up 9% sequentially and
11% from the previous year driven by growth in demand deposit
and interest checking balances
Reduced wholesale funding by $320mm from 4Q10
Non-core deposits down 9% sequentially
Short term borrowings down 6% sequentially
Long-term debt down 4% sequentially
^ Excludes loans held-for-sale
Note: Numbers may not sum due to rounding |
7
Fifth Third Bank | All Rights Reserved
Noninterest income
Noninterest income of $550mm decreased $115mm, or 17%, from prior quarter; driven by
the effect of valuation adjustments on the Visa total return swap, the impact
of new debit interchange regulation on interchange revenue, lower net
securities gains, and lower mortgage banking net revenue
4Q11 debit interchange revenue of $29mm
4Q11 debit interchange $ volume: $4.6B (Signature $3.5B, PIN $1.1B)
4Q11 debit interchange transaction volume: 124mm (Signature 98mm, PIN 26mm)
Credit costs recorded in noninterest income:
Noninterest income
Note: Numbers may not sum due to rounding
Actual
($ in millions)
4Q10
3Q11
4Q11
Gain / (loss) on sale of loans
$21
$3
$9
Commercial loans HFS FV adjustment
(35)
(6)
(18)
Gain / (loss) on sale of OREO properties
(19)
(21)
(22)
Mortgage repurchase costs
(1)
(2)
(1)
Total credit-related revenue impact
($34)
($25)
($33)
Actual
Seq.
YOY
4Q10
3Q11
4Q11
$
%
$
%
($ in millions)
Service charges on deposits
$140
$134
$136
$2
1%
($4)
(3%)
Corporate banking revenue
103
87
82
(5)
(5%)
(21)
(20%)
Mortgage banking net revenue
149
178
156
(22)
(12%)
7
5%
Investment advisory revenue
93
92
90
(2)
(2%)
(3)
(3%)
Card and processing revenue
81
78
60
(18)
(24%)
(21)
(26%)
Other noninterest income
55
64
24
(40)
(63%)
(31)
(57%)
Securities gains, net
21
26
5
(21)
(81%)
(16)
(76%)
Securities gains, net -
14
6
(3)
(9)
NM
(17)
NM
non-qualifying hedges on MSRs
Noninterest income
$656
$665
$550
($115)
(17%)
($106)
(16%) |
8
Fifth Third Bank | All Rights Reserved
Noninterest expense
Noninterest expense
Noninterest expense of $993mm increased $47mm, or 5%, compared with 3Q11, driven by
higher compensation and benefits expenses (mortgage volumes, pension
settlement expense) and increased litigation reserves primarily
related to bankcard association membership
Credit costs recorded in noninterest expense:
Note: Numbers may not sum due to rounding
Actual
Seq.
YOY
4Q10
3Q11
4Q11
$
%
$
%
($ in millions)
Salaries, wages and incentives
$385
$369
$393
$24
7%
$8
2%
Employee benefits
73
70
84
14
21%
11
16%
Net occupancy expense
76
75
79
4
5%
3
4%
Technology and communications
52
48
48
-
-
(4)
(8%)
Equipment expense
32
28
27
(1)
(3%)
(5)
(13%)
Card and processing expense
26
34
28
(6)
(17%)
2
9%
Other noninterest expense
343
322
334
12
4%
(9)
(3%)
Noninterest expense
$987
$946
$993
$47
5%
$6
1%
Actual
($ in millions)
4Q10
3Q11
4Q11
Mortgage repurchase expense
$20
$19
$18
Provision for unfunded commitments
(4)
(10)
(6)
Derivative valuation adjustments
(1)
4
(5)
OREO expense
11
7
8
Other problem asset related expenses
27
25
28
Total credit-related operating expenses
$52
$45
$44 |
Pre-tax pre-provision earnings*
PPNR trend
PPNR of $473mm down 23% from 3Q11 levels and down 19% over prior
year reflecting
increased net interest income offset by a decrease in noninterest income and an
increase in noninterest expense
Adjusted PPNR of $526mm, including positive adjustments totaling
$53mm, down 17%
sequentially and 9% year-over-year
PPNR reconciliation
581
546
582
637
526
34
3
28
25
33
52
31
36
45
44
$0
$100
$200
$300
$400
$500
$600
$700
$800
4Q10
1Q11
2Q11
3Q11
4Q11
Noninterest Expense Credit Items
Fee Income Credit Items
Adjusted
($ in millions)
4Q10
1Q11
2Q11
3Q11
4Q11
Income before income taxes (U.S. GAAP) (a)
$417
$377
$506
$530
$418
Add: Provision expense (U.S. GAAP) (b)
166
168
113
87
55
PPNR (a) + (b)
$583
$545
$619
$617
$473
Adjustments to remove (benefit) / detriment:
^
Valuation of 2009 Visa total return swap
5
9
4
17
54
Securities (gains) / losses
(21)
(8)
(6)
(26)
(5)
Bankcard association litigation accrual
-
1
-
4
14
FTPS warrants & puts
(3)
2
(29)
(3)
(10)
Extinguishment (gains) / losses
17
(3)
(6)
-
-
Termination of certain borrowings and hedging
transactions
-
-
-
28
Adjusted PPNR
$581
$546
$582
$637
$526
Credit-related items^^:
In noninterest income
34
3
28
25
33
In noninterest expense
52
31
36
45
44
Credit-adjusted PPNR**
$667
$580
$646
$707
$603
-
Fifth Third Bank | All Rights Reserved
9
* Non-GAAP measure. See Reg. G reconciliation on slides 34-35. **
There are limitations on the usefulness of credit-adjusted PPNR, including the significant degree to which changes in credit and fair value are integral, recurring components
of the Bancorps core operations as a financial institution. This measure has been included
herein to facilitate a greater understanding of the Bancorps financial condition.
^ Prior quarters include similar adjustments ^^
See Slide 7 and Slide 8 for detailed breakout of credit-related items. |
Strong capital position
Strong capital ratios under Basel I; estimated Basel III Tier 1 common ratio of
9.7%* |
11
Fifth Third Bank | All Rights Reserved
Net charge-offs
Net charge-offs by loan type
Net charge-offs by geography
Net charge-offs ($mm)
$mm
%
Commercial
$113
47%
Consumer
$126
53%
Total
$239
100%
Actual
Seq.
YOY
($ in millions)
4Q10
3Q11
4Q11
$
%
$
%
C&I
$85
$55
$62
$7
13%
($23)
(27%)
Commercial mortgage
80
47
47
-
-
(33)
(41%)
Commercial construction
11
35
4
(31)
(89%)
(7)
(64%)
Commercial lease
(3)
(1)
-
1
(100%)
3
(100%)
Commercial
$173
$136
$113
($23)
(17%)
($60)
(35%)
Residential mortgage loans
62
36
36
-
-
(26)
(42%)
Home equity
65
53
50
(3)
(6%)
(15)
(23%)
Automobile
19
12
13
1
8%
(6)
(32%)
Credit card
33
18
21
3
17%
(12)
(36%)
Other consumer
4
7
6
(1)
(14%)
2
50%
Consumer
$183
$126
$126
-
-
($57)
(31%)
Total net charge-offs
$356
$262
$239
($23)
(9%)
($117)
(33%)
Year-over-year charge-offs down significantly due to improving credit
trends $mm
%
Florida
$41
17%
Michigan
59
25%
Subtotal
$101
42%
Other
139
58%
Total
$239
100% |
12
Fifth Third Bank | All Rights Reserved
Nonperforming assets
NPAs of $1.8B excluding held-for-sale down
16% year-over-year
Commercial NPAs of $1.3B, down 15% from
the previous year
Homebuilder / developer NPAs of
$155mm; represent 12% of total
commercial NPAs
Consumer NPAs of $478mm, down 20% from
the previous year
NPAs in held-for-sale of $138mm
C&I / Lease
$522mm, 29%
CRE
$816mm, 45%
Residential
$416mm, 23%
Other Consumer
$62mm, 3%
ILLINOIS
INDIANA
FLORIDA
TENNESSEE
KENTUCKY
OHIO
MICHIGAN
NORTH
CAROLINA
OTHER /
NATIONAL
NPAs exclude loans held-for-sale.
Nonperforming assets continue to improve |
13
Fifth Third Bank | All Rights Reserved
NPL HFI Rollforward
Commercial
4Q10
1Q11
2Q11
3Q11
4Q11
Beginning NPL Amount
1,261
1,214
1,211
1,253
1,155
Transfers to nonperforming
269
329
340
217
190
Transfers to performing
(2)
(2)
(10)
(11)
-
Transfers to performing (restructured)
-
-
-
(1)
-
Transfers from held for sale
-
-
-
-
4
Transfers to held for sale
-
(16)
(15)
(58)
(3)
Loans sold from portfolio
(9)
(12)
(7)
(17)
(21)
Loan paydowns/payoffs
(111)
(108)
(91)
(77)
(150)
Transfer to other real estate owned
(48)
(37)
(39)
(20)
(14)
Charge-offs
(170)
(164)
(141)
(136)
(113)
Draws/other extensions of credit
24
7
5
5
10
Ending Commercial NPL
1,214
1,211
1,253
1,155
1,058
Consumer
4Q10
1Q11
2Q11
3Q11
4Q11
Beginning NPL Amount
323
466
434
386
383
Transfers to nonperforming
365
232
214
201
206
Transfers to performing
(36)
(35)
(34)
(33)
(28)
Transfers to performing (restructured)
(25)
(50)
(41)
(39)
(39)
Transfers to held for sale
-
-
-
-
-
Loans sold from portfolio
-
(1)
(21)
-
-
Loan paydowns/payoffs
(17)
(18)
(27)
(27)
(26)
Transfer to other real estate owned
(20)
(18)
(15)
(16)
(30)
Charge-offs
(130)
(144)
(126)
(91)
(87)
Draws/other extensions of credit
4
2
2
2
1
Ending Consumer NPL
466
434
386
383
380
Total NPL
1,680
1,645
1,639
1,538
1,438
Total new nonaccrual loans - HFI
634
561
554
418
396
NPL Rollforward
Significant improvement in NPL inflows over past year |
14
Fifth Third Bank | All Rights Reserved
Troubled debt restructurings overview
Successive improvement in vintage performance during
2008 and 2009 as volume of modification increased
Fifth Thirds mortgage portfolio TDRs have redefaulted
at a lower rate than GSE composites
Of $1.8B in consumer TDRs, $1.6B were on accrual
status and $220mm were nonaccruals
$1.1B of TDRs are current and have been on the
books 6 or more months; within that, nearly
$940mm of TDRs are current and have been on
the books for more than a year
As current TDRs season, their default propensity
declines significantly
We see much lower defaults on current loans after
a vintage approaches 12 months since
modification
TDR performance has improved in newer vintages
Outperforming redefault benchmarks
Source: Fifth Third and OCC/OTS data through 2Q11
Mortgage TDR 60+ redefault trend by vintage*
1Q08 3%
3Q08 7%
Months since modification
Mortgage TDR 60+ redefault rate: Fifth Third comparison
(January 1, 2008 through September 2011)*
Fannie Mae
Industry
portfolio loans
Fifth Third
Volume by
vintage
Freddie Mac
3Q09 12%
* Fifth Third data includes changes made to align with OCC/OTS methodology (i.e.
excludes government loans, closed loans and OREO from calculations)
2Q08 7%
4Q08 8%
1Q09 11%
2Q09 12%
4Q09 7%
1Q10 7%
2Q10 5%
2Q11 4%
1Q11 4%
4Q10 4%
3Q10 5% |
15
Fifth Third Bank | All Rights Reserved
Strong relative credit trends
Peer
average
includes:
BBT,
CMA,
HBAN,
KEY,
MTB,
PNC,
RF,
STI,
USB,
WFC,
and
ZION
Source:
SNL
Financial
and
company
filings.
All
ratios
exclude
loans
held-for-sale
and
covered
assets
for
peers
where
appropriate.
*
4Q08
NCOs
included
$800mm
in
NCOs
related
to
commercial
loans
moved
to
held-for-sale;
3Q10
NCOs
included
$510mm
in
NCOs
related
to
loans
sold
or
moved
to
held-for-sale
FITB credit metrics are in line with or better than peers
|
16
Fifth Third Bank | All Rights Reserved
Strong reserve position
Peer average includes: BBT, CMA, HBAN, KEY, MTB, PNC, RF,STI, USB, WFC, and
ZION Source: SNL and company reports. NPAs / NPLs exclude
held-for-sale portion for all banks as well as covered assets for BBT, USB, and ZION
4Q11 coverage ratios strong
relative to peers (3Q11) |
17
Fifth Third Bank | All Rights Reserved
Mortgage repurchase overview
22% drop in 4Q11 outstanding claims balance from
prior quarter
Increase in file requests by GSEs on current
(performing) loans
Virtually all sold loans and the majority of new claims
relate to agencies
98% of outstanding balance of loans sold
71%
of current quarter outstanding claims
Majority of outstanding balances of the serviced for
others portfolio relates to origination activity in 2009
and later
Private claims and exposure relate to whole loan sales
(no outstanding first mortgage securitizations)
Preponderance of private sales prior to 2006
Repurchase Reserves* ($ in millions)
Outstanding Counterparty Claims ($ in millions)
Outstanding Balance of Sold Loans ($ in millions)
4Q10
1Q11
2Q11
3Q11
4Q11
Beginning balance
103
101
87
80
69
Net reserve additions
21
10
15
20
20
Repurchase losses
(23)
(23)
(22)
(31)
(17)
Ending balance
101
88
80
69
72
2005 and prior
GSE
GNMA
Private
Total
$7,214
$287
$530
$8,030
2006
1,668
59
263
1,990
2007
2,697
88
228
3,014
2008
2,664
680
0.3
3,344
2009 and later
31,714
9,040
1
40,755
Total
$45,957
$10,154
$1,022
$57,133
*
Includes reps and warranty reserve ($55mm) and reserve for loans
sold with recourse ($17mm) |
18
Fifth Third Bank | All Rights Reserved
European Exposure
Total exposure includes funded and unfunded commitments, net of collateral; funded
exposure excludes unfunded exposure Peripheral Europe includes Greece,
Ireland, Italy, Portugal and Spain Eurozone
includes
countries
participating
in
the
European
common
currency
(Euro)
Other Europe includes European countries not part of the Euro (primarily the United
Kingdom and Switzerland) Data above includes exposure to U.S. subsidiaries of
Europe-domiciled companies
International exposure primarily related to trade finance and financing activities of
U.S. companies with foreign parent or overseas activities of U.S.
customers
No European sovereign exposure (total international sovereign exposure $3mm)
Total exposure to European financial institutions <$200mm
Total exposure to five peripheral Europe countries <$200mm
$875mm in funded exposure to Eurozone-related companies (~1% of total loan
portfolio) |
19
Fifth Third Bank | All Rights Reserved
Traditional banking focus
consistent with direction of financial reform
Business
profile
positions
Fifth
Third
well
today
and
in
the
future
Do not require substantial changes to Fifth Thirds business model or asset mix
with attendant execution risk
Fifth Thirds business model is driven by traditional banking activities,
consistent with direction of financial reform Dodd-Frank /
Basel III
International activity primarily related to trade finance and lending to U.S.
subsidiaries of foreign companies (e.g. Fifth Third loss in Lehman bankruptcy
expected to be less than $2mm)
Financial system
interconnectedness
Little to no impact (de minimis market maker in derivatives, proprietary
trading)
Low trading business activity; daily VaR ~$1mm or less
Small private equity portfolio <$200mm
Volcker rule
Other large firms facing significant litigation related to mortgage securitizations,
GSE repurchases, and private label mortgage repurchases
Fifth Thirds mortgage risks are manageable
Quarterly mortgage repurchase costs ~$20-25mm and claims inventory
declining
Total
mortgage securitizations outstanding $22mm (2003 HELOC) and performing well
Mortgage Putback /
Litigation risk
No significant business at Fifth Third impaired during crisis
No originations of CDOs, securitizations on behalf of others
Didnt originate or sell subprime mortgages or Option ARMs
Effect of crisis on
core business
No direct European sovereign exposure
Total exposure to European peripheral borrowers (Greece, Ireland, Italy, Portugal,
Spain) less than $200mm
Gross exposure to European banks less than $200mm
European banks and
sovereign debt
exposure |
20
Fifth Third Bank | All Rights Reserved
Appendix |
21
Fifth Third Bank | All Rights Reserved
Well-positioned for the future
Holding company cash currently sufficient for more than 2 years of obligations;
minimal holding company or Bank debt maturities until 2013
Fifth Third has completely exited all crisis-era government support
programs
Fifth Third is one of the few large banks that have no TLGP-guaranteed debt to
refinance in 2012 Superior capital and liquidity position
NCOs of 1.2%; 2.4x reserves / annualized NCOs
Substantial reduction in exposure to CRE since 1Q09; relatively low CRE exposure
versus peers
Very low relative exposure to areas of concern, e.g. European financials, mortgage
repurchase risk Proactive approach to risk management
Traditional commercial banking franchise built on customer-oriented localized
operating model
Strong market share in key markets with focus on further improving density
Fee income ~40% of total revenues
Diversified traditional banking platform
PPNR has remained strong throughout the credit cycle
PPNR substantially exceeds annual net charge-offs (198% PPNR / NCOs^ in
4Q11)
1.1% ROAA; 12% return on average tangible common equity^
Industry leader in earnings power
^ Non-GAAP measure. See Reg. G reconciliation on slides 34-35.
|
22
Fifth Third Bank | All Rights Reserved
Balance Sheet:
Average loans & leases (excl. HFS)
Average transaction deposits
Income Statement:
Net interest income*
Net interest margin*
Noninterest income
Noninterest expense
Pre-provision net revenue**
ROA
Effective tax rate
Asset Quality:
Net charge-offs
Loan loss allowance
Nonperforming assets^
Capital Ratios
#
:
Tier I common equity** (Basel III)
Tier I leverage
Tier I capital
Total risk-based capital
Category
Fifth Third: Outlook
1Q12 Outlook
$79.9 billion
$75.6
billion
Down ~$15-20mm vs. 4Q11
Down ~5 bps vs. 4Q11
Up ~$50-60mm vs. 4Q11
Down ~$15mm vs. 4Q11
~$530mm +/-
>1.1%
27-28%
* Presented on a fully-taxable equivalent basis.
** Non-GAAP measure. See Reg. G reconciliation on slides 34-35.
^ Ratio as a percent of loans excluding held-for-sale; allowance
expectation assumes current expectation for credit and economic trends and is subject to review at quarter-end.
^^ Annualized net charge-offs as a percentage of average loans and leases
# Current period regulatory capital data ratios are estimated; see slide 35 for
estimation of Basel III phased-in Tier 1 common 4Q11 Actual
Outlook as of January 20, 2012
Solid growth vs. 4Q11
Stable vs. 4Q11
Down ~$10-15mm +/-
vs. 4Q11
Lower vs. 4Q11
Down ~$100mm vs. 4Q11
$920 million
3.67%
$550 million
$993 million
$473 million
1.1%
25%
9.3% (~9.7%)
11.1%
11.9%
16.1%
$239 million (1.19%^^)
$2.3 billion (2.78%)
$1.8 billion (2.23%)
Please see cautionary statement on slide 2 for risk factors related to
forward-looking statements |
23
Fifth Third Bank | All Rights Reserved
Available and contingent borrowing capacity (4Q11):
FHLB ~$9B
Federal Reserve ~$22B
Holding Company cash at 12/31/11: $2.6B
Cash currently sufficient to satisfy all fixed obligations
for more than 2 years (debt maturities, common and
preferred dividends, interest and other expenses)
without accessing capital markets; relying on dividends
from subsidiaries; proceeds from asset sales
Expected cash obligations over the next 12 months
~$368mm common dividends
~$35mm Series G preferred dividends
~$419mm interest and other expenses
Holding company unsecured debt maturities ($mm)
Bank unsecured debt maturities ($mm
excl. Brokered CDs)
Heavily core funded
Strong liquidity profile
S-T
wholesale
8% |
24
Fifth Third Bank | All Rights Reserved
Non-performing assets and net charge-offs:
Product view*
*NPAs exclude loans held-for-sale. |
25
Fifth Third Bank | All Rights Reserved
Non-performing assets and net charge-offs:
Geographic view*
*NPAs exclude loans held-for-sale. |
26
Fifth Third Bank | All Rights Reserved
($ in millions)
4Q10
1Q11
2Q11
3Q11
4Q11
EOP Balance
$27,191
$27,344
$28,099
$29,258
$30,783
Avg Loans
$26,338
$27,331
$27,909
$28,777
$29,891
90+ days delinquent
$16
$8
$7
$9
$4
as % of loans
0.06%
0.03%
0.02%
0.03%
0.01%
NPAs
$612
$620
$638
$588
$509
as % of loans
2.25%
2.27%
2.27%
2.01%
1.65%
Net charge-offs
$85
$83
$76
$55
$62
as % of loans
1.27%
1.22%
1.10%
0.76%
0.82%
C&I
Commercial & industrial*
Loans by geography
Credit trends
Loans by industry
Comments
Commercial & Industrial loans represented 38% of total loans
and 26% of net charge-offs
14% of 4Q11 losses on loans to companies in real estate
related industries
Loans to real estate related industries of $2.3B (7%);
4Q11 NCO ratio of 1.45%
FL represented 11% of 4Q11 losses, 7% of loans; MI
represented 20% of losses, 10% of loans
*NPAs exclude loans held-for-sale. |
27
Fifth Third Bank | All Rights Reserved
($ in millions)
4Q10
1Q11
2Q11
3Q11
4Q11
EOP Balance
$10,845
$10,510
$10,233
$10,330
$10,138
Avg Loans
$10,985
$10,685
$10,394
$10,050
$10,262
90+ days delinquent
$11
$8
$12
$9
$3
as % of loans
0.10%
0.08%
0.11%
0.09%
0.03%
NPAs
$679
$696
$710
$630
$637
as % of loans
6.26%
6.63%
6.94%
6.10%
6.28%
Net charge-offs
$80
$54
$47
$47
$47
as % of loans
2.89%
2.04%
1.83%
1.86%
1.82%
Commercial mortgage
Commercial mortgage*
Loans by geography
Credit trends
Loans by industry
Comments
*NPAs exclude loans held-for-sale.
Commercial mortgage loans represented 13% of total loans
and 20% of net charge-offs
Owner occupied 4Q11 NCO ratio of 1.4%, non-owner occupied
4Q11 NCO ratio of 2.2%
Loans from FL/MI represented 39% of portfolio loans, 58% of
portfolio losses in 4Q11 |
28
Fifth Third Bank | All Rights Reserved
($ in millions)
4Q10
1Q11
2Q11
3Q11
4Q11
EOP Balance
$2,048
$1,980
$1,778
$1,213
$1,020
Avg Loans
$2,171
$2,030
$1,918
$1,752
$1,132
90+ days delinquent
$3
$23
$48
$44
$1
as % of loans
0.13%
1.16%
2.71%
3.65%
0.09%
NPAs
$259
$248
$240
$238
$179
as % of loans
12.65%
12.53%
13.52%
19.60%
17.60%
Net charge-offs
$11
$26
$20
$35
$4
as % of loans
2.01%
5.24%
4.09%
7.90%
1.37%
Commercial construction
Commercial construction*
Loans by geography
Credit trends
Loans by industry
Comments
*NPAs exclude loans held-for-sale.
Commercial construction loans represented 1% of total loans
and 2% of net charge-offs
Loans from FL/MI represented 27% of portfolio loans, 25% of
portfolio losses in 4Q11 |
29
Fifth Third Bank | All Rights Reserved
($ in millions)
4Q10
1Q11
2Q11
3Q11
4Q11
EOP Balance
$699
$651
$597
$578
$512
90+ days delinquent
$1
$1
$1
$3
$0
as % of loans
0.12%
0.16%
0.19%
0.59%
0.03%
NPAs
$259
$249
$243
$207
$155
as % of loans
37.12%
38.30%
40.67%
35.87%
30.34%
Net charge-offs
$19
$22
$14
$18
$2
as % of loans
10.08%
13.04%
8.91%
11.50%
1.28%
Homebuilders/developers
Homebuilders/developers*
(included in previous slides)
Loans by geography
Credit trends
Loans by industry
Comments
Originations of builder/developer loans suspended in 2007
Remaining portfolio balance of $512mm, down 85% from peak
of $3.3B in 2Q08; represents approximately 1% of total loans
and 1.1% of commercial loans
$2mm of NCOs (17% commercial mortgage, 81% commercial
construction, 2% C&I)
$155mm of NPAs (57% commercial mortgage, 34%
commercial construction, 9% C&I)
*NPAs exclude loans held-for-sale. |
30
Fifth Third Bank | All Rights Reserved
($ in millions)
4Q10
1Q11
2Q11
3Q11
4Q11
EOP Balance
$8,956
$9,530
$9,849
$10,249
$10,672
Avg Loans
$8,382
$9,282
$9,654
$10,006
$10,464
90+ days delinquent
$100
$98
$87
$91
$79
as % of loans
1.12%
1.03%
0.88%
0.89%
0.74%
NPAs
$368
$338
$338
$337
$350
as % of loans
4.11%
3.55%
3.43%
3.29%
3.28%
Net charge-offs
$62
$65
$36
$36
$36
as % of loans
2.93%
2.82%
1.50%
1.41%
1.38%
Residential mortgage
Residential mortgage
1
st
liens: 100%; weighted average LTV: 73.8%
Weighted average origination FICO: 748
Origination FICO distribution: <660 8%; 660-689 6%; 690-719
10%; 720-749 13%; 750+ 51%; Other^ 12%
(note: loans <660 includes CRA loans and FHA/VA loans)
Origination LTV distribution: <=70 35%; 70.1-80 39%; 80.1-90 8%;
90.1-95 4%; >95 14%
Vintage distribution: 2011 29%; 2010 20%; 2009 5%; 2008 6%;
2007 8%; 2006 7%; 2005 12%; 2004 and prior 13%
% through broker: 14%; performance similar to direct
Loans by geography
Credit trends
Portfolio details
Comments
^ Includes acquired loans where FICO at origination is not available
Residential mortgage loans represented 13% of total loans
and 15% of net charge-offs
FL portfolio 16% of residential mortgage loans and 49% of
portfolio losses |
31
©
Fifth Third Bank | All Rights Reserved
($ in millions)
4Q10
1Q11
2Q11
3Q11
4Q11
EOP Balance
$9,815
$9,585
$9,462
$9,380
$9,232
90+ days delinquent
$59
$59
$61
$62
$56
as % of loans
0.60%
0.62%
0.64%
0.66%
0.61%
Net charge-offs
$40
$39
$34
$35
$33
as % of loans
1.61%
1.64%
1.46%
1.50%
1.42%
Home equity - direct
($ in millions)
4Q10
1Q11
2Q11
3Q11
4Q11
EOP Balance
$1,698
$1,637
$1,586
$1,540
$1,487
90+ days delinquent
$25
$25
$23
$21
$18
as % of loans
1.46%
1.51%
1.46%
1.37%
1.21%
Net charge-offs
$25
$24
$20
$18
$17
as % of loans
5.74%
5.88%
4.95%
4.53%
4.54%
Home equity - brokered
Home equity
1
st
liens: 31%; 2nd liens: 69%
Weighted average origination FICO: 750
Origination FICO distribution^: <660 4%; 660-689 7%; 690-719 13%;
720-749 17%; 750+ 50%; Other 9%
Average CLTV: 74%; Origination CLTV distribution: <=70 39%; 70.1-80 22%;
80.1-90 18%; 90.1-95 7%; >95 14%
Vintage distribution: 2011 3%; 2010 3%; 2009 4%; 2008 11%; 2007 11%; 2006
15%; 2005 14%; 2004 and prior 39%
% through broker channels: 14% WA FICO: 735 brokered, 752 direct; WA
CLTV: 88% brokered; 71% direct
Portfolio details
Comments
Brokered loans by geography
Direct loans by geography
Credit trends
Home equity loans represented 13% of total loans and 21% of net
charge-offs
Approximately 14% of portfolio in broker product driving 34% total
loss
Approximately one third of Fifth Third 2
nd
liens are behind Fifth Third
1
st
liens
2005/2006 vintages represent approximately 29% of portfolio; account
for 55% of losses
Aggressive home equity line management strategies in place
Note: Brokered and direct home equity net charge-off ratios are calculated
based on end of period loan balances ^ Includes acquired loans where FICO at
origination is not available |
32
©
Fifth Third Bank | All Rights Reserved
Loans ($B)
% of
FITB
NPAs ($M)
% of
FITB
NCOs
($M)
% of
FITB
Commercial loans
2.0
7%
66
13%
7
11%
Commercial mortgage
1.3
12%
118
18%
6
13%
Commercial construction
0.2
18%
89
50%
-
0%
Commercial lease
0.0
1%
-
0%
-
0%
Commercial
3.5
8%
273
20%
13
11%
Mortgage
1.7
16%
156
45%
19
52%
Home equity
0.8
8%
9
13%
6
13%
Auto
0.5
5%
1
5%
1
7%
Credit card
0.1
5%
3
7%
2
8%
Other consumer
0.0
5%
-
0%
1
12%
Consumer
3.2
9%
168
35%
29
23%
Total
6.7
8%
441
24%
41
17%
Florida
Florida market*
Deterioration in real estate values having effect on credit trends as evidenced by
increased NPA/NCOs in real estate related products COML
MORTGAGE
C&I
RESI
MORTGAGE
OTHER
CONS
COML
CONST
COML
LEASE
HOME
EQUITY
AUTO
CREDIT
CARD
Total Loans
NPAs
NCOs
*NPAs exclude loans held-for-sale.
Weak commercial real estate market
Losses due to significant declines in
valuations
Valuations; relatively small home
equity portfolio |
33
Fifth Third Bank | All Rights Reserved
Loans ($B)
% of
FITB
NPAs ($M)
% of
FITB
NCOs
($M)
% of
FITB
Commercial loans
3.2
10%
101
20%
12
20%
Commercial mortgage
2.6
26%
150
24%
21
45%
Commercial construction
0.1
10%
15
8%
1
35%
Commercial lease
0.2
5%
3
21%
(0)
0%
Commercial
6.1
14%
269
20%
35
31%
Mortgage
1.6
15%
39
11%
5
15%
Home equity
2.2
21%
7
11%
14
28%
Auto
1.0
8%
2
14%
2
12%
Credit card
0.3
15%
9
19%
3
15%
Other consumer
0.1
22%
-
0%
1
11%
Consumer
5.2
15%
57
12%
25
19%
Total
11.4
14%
326
18%
59
25%
Michigan
Michigan market*
Deterioration in home price values coupled with weak economy impacting credit trends
due to frequency of defaults and severity COML
MORTGAGE
C&I
RESI
MORTGAGE
OTHER
CONS
COML
CONST
COML
LEASE
HOME
EQUITY
AUTO
CREDIT
CARD
Total Loans
NPAs
NCOs
*NPAs exclude loans held-for-sale.
Negative impact from housing
valuations, economy,
unemployment
Economic weakness impact on
commercial real estate market |
34
Fifth Third Bank | All Rights Reserved
Regulation G Non-GAAP reconciliation
$ and shares in millions
(unaudited)
For the Three Months Ended
December
September
June
March
December
2011
2011
2011
2010
2010
Income before income taxes (U.S. GAAP)
418
530
506
377
417
Add:
Provision expense (U.S. GAAP)
55
87
113
168
166
Pre-provision net revenue (a)
473
617
619
545
583
Net income available to common shareholders (U.S. GAAP)
305
373
328
88
270
Add:
Intangible amortization, net of tax
3
3
4
5
7
Tangible net income available to common shareholders
308
376
332
93
277
Tangible net income available to common shareholders (annualized) (b)
1,222
1,492
1,332
377
1,099
Average Bancorp shareholders' equity (U.S. GAAP)
13,147
12,841
12,365
13,052
14,007
Less:
Average preferred stock
398
398
398
1,557
3,648
Average goodwill
2,417
2,417
2,417
2,417
2,417
Average intangible assets
42
47
52
59
67
Average tangible common equity (c)
10,920
9,979
9,498
9,019
7,875
Total Bancorp shareholders' equity (U.S. GAAP)
13,201
13,029
12,572
12,163
14,051
Less:
Preferred stock
(398)
(398)
(398)
(398)
(3,654)
Goodwill
(2,417)
(2,417)
(2,417)
(2,417)
(2,417)
Intangible assets
(40)
(45)
(49)
(55)
(62)
Tangible common equity, including unrealized gains / losses (d)
10,346
10,169
9,708
9,293
7,918
Less: Accumulated other comprehensive income / loss
(470)
(542)
(396)
(263)
(314)
Tangible common equity, excluding unrealized gains / losses (e)
9,876
9,627
9,312
9,030
7,604
Total assets (U.S. GAAP)
116,967
114,905
110,805
110,485
111,007
Less:
Goodwill
(2,417)
(2,417)
(2,417)
(2,417)
(2,417)
Intangible assets
(40)
(45)
(49)
(55)
(62)
Tangible assets, including unrealized gains / losses (f)
114,510
112,443
108,339
108,013
108,528
Less: Accumulated other comprehensive income / loss, before tax
(723)
(834)
(609)
(405)
(483)
Tangible assets, excluding unrealized gains / losses (g)
113,787
111,609
107,730
107,608
108,045
Common shares outstanding (h)
920
920
920
919
796
Net charge-offs (i)
239
262
304
367
356
Ratios:
Return on average tangible common equity (b) / (c)
11.88%
14.95%
14.02%
4.18%
13.95%
Tangible
common
equity
(excluding
unrealized
gains/losses)
(e)
/
(g)
8.68%
8.63%
8.64%
8.39%
7.04%
Tangible
common
equity
(including
unrealized
gains/losses)
(d)
/
(f)
9.04%
9.04%
8.96%
8.60%
7.30%
Tangible book value per share (d) / (h)
11.25
11.05
10.55
10.11
9.94
Pre-provision net revenue / net charge-offs (a) / (i)
198%
235%
204%
149%
164% |
35
Fifth Third Bank | All Rights Reserved
Regulation G Non-GAAP reconciliation
$ in millions
(unaudited)
For the Three Months Ended
December
September
June
March
December
2011
2011
2011
2010
2010
Total Bancorp shareholders' equity (U.S. GAAP)
13,201
13,029
12,572
12,163
14,051
Goodwill and certain other intangibles
(2,514)
(2,514)
(2,536)
(2,546)
(2,546)
Unrealized gains
(470)
(542)
(396)
(263)
(314)
Qualifying trust preferred securities
2,248
2,273
2,312
2,763
2,763
Other
38
20
20
12
11
Tier I capital
12,503
12,266
11,972
12,129
13,965
Less:
Preferred stock
(398)
(398)
(398)
(398)
(3,654)
Qualifying trust preferred securities
(2,248)
(2,273)
(2,312)
(2,763)
(2,763)
Qualifying noncontrolling interest in consolidated subsidiaries
(50)
(30)
(30)
(30)
(30)
Tier I common equity (a)
9,807
9,565
9,232
8,938
7,518
Unrealized gains
470
542
Disallowed deferred tax assets
-
-
Disallowed MSRs
70
64
Other
12
10
Less:
10% of individual deferred tax assets, MSRs, investment in financial entities
-
-
15% of aggregate deferred tax assets, MSRs, investment in financial entities
-
-
Tier 1 common equity, Basel III proforma (b)
10,359
10,181
Risk-weighted assets, determined in accordance with
prescribed regulatory requirements (c)
104,999
102,560
100,320
99,392
100,561
Add:
Regulatory deductions not deducted from Tier 1 common equity,
risk-weighted at 250%
1,453
1377
Risk-weighted assets, Basel III proforma (d)
106,452
103,937
Ratios:
Tier I common equity (a) / (c)
9.34%
9.33%
9.20%
8.99%
7.48%
Tier I common equity, Basel III proforma (b) / (d)
9.7%
9.8% |
Exhibit 99.3
January 2012
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 Thirds Investor Relations Department at (513) 534-3945 or IR@53.com
Jim Eglseder |
Rich Rosen | |||||
VP / Investor Relations |
VP / Investor Relations | |||||
(513) 534-8424 |
(513) 534-3307 |
Quarterly Data
Three Months Ended | ||||||||||||||||||||||||||||||||
December 31, 2011 |
September 30, 2011 |
June 30, 2011 |
March 31, 2011 |
December 31, 2010 |
September 30, 2010 |
June 30, 2010 |
March 31, 2010 |
|||||||||||||||||||||||||
Ratios (percent) |
||||||||||||||||||||||||||||||||
Return on assets |
1.08 | 1.34 | 1.22 | 0.97 | 1.18 | 0.84 | 0.68 | (0.04 | ) | |||||||||||||||||||||||
Return on average common equity |
9.5 | 11.9 | 11.0 | 3.1 | 10.4 | 6.8 | 5.2 | (3.0 | ) | |||||||||||||||||||||||
Average equity as a percent of average assets |
11.41 | 11.33 | 11.12 | 11.77 | 12.52 | 12.38 | 12.04 | 11.92 | ||||||||||||||||||||||||
Net interest margin (a) |
3.67 | 3.65 | 3.62 | 3.71 | 3.75 | 3.70 | 3.57 | 3.63 | ||||||||||||||||||||||||
Efficiency (a) |
67.5 | 60.4 | 59.1 | 62.5 | 62.6 | 56.2 | 62.1 | 62.6 | ||||||||||||||||||||||||
Net losses charged off as a percent of average loans and leases |
1.19 | 1.32 | 1.56 | 1.92 | 1.86 | 4.95 | 2.26 | 3.01 | ||||||||||||||||||||||||
Allowance for loan and lease losses as a percent of loans and leases |
2.78 | 3.08 | 3.35 | 3.62 | 3.88 | 4.20 | 4.85 | 4.91 | ||||||||||||||||||||||||
Allowance for credit losses as a percent of loans and leases |
3.01 | 3.32 | 3.61 | 3.89 | 4.17 | 4.51 | 5.18 | 5.25 | ||||||||||||||||||||||||
Nonperforming assets as a percent of loans, leases and other assets, including |
2.23 | 2.44 | 2.66 | 2.73 | 2.79 | 2.72 | 3.87 | 4.02 | ||||||||||||||||||||||||
Allowance for loan and lease losses as a percent of nonperforming assets (b) |
124.17 | 125.46 | 125.19 | 131.94 | 138.18 | 153.41 | 124.40 | 121.50 | ||||||||||||||||||||||||
Allowance for credit losses as a percent of nonperforming assets (b) |
134.13 | 135.11 | 134.65 | 141.86 | 148.62 | 164.54 | 132.97 | 129.80 | ||||||||||||||||||||||||
Common Share Data |
||||||||||||||||||||||||||||||||
Earnings per share |
$ | 0.33 | $ | 0.41 | $ | 0.36 | $ | 0.10 | $ | 0.34 | $ | 0.22 | $ | 0.16 | $ | (0.09 | ) | |||||||||||||||
Earnings per diluted share |
$ | 0.33 | $ | 0.40 | $ | 0.35 | $ | 0.10 | $ | 0.33 | $ | 0.22 | $ | 0.16 | $ | (0.09 | ) | |||||||||||||||
Cash dividends per common share |
0.08 | 0.08 | 0.06 | 0.06 | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||||||||||||||||
Book value per share |
13.92 | 13.73 | 13.23 | 12.80 | 13.06 | 12.86 | 12.65 | 12.31 | ||||||||||||||||||||||||
Common shares outstanding, excluding treasury |
919,804,436 | 919,778,512 | 919,818,137 | 918,728,008 | 796,272,522 | 796,283,198 | 796,319,712 | 794,816,131 | ||||||||||||||||||||||||
Market price per share: |
||||||||||||||||||||||||||||||||
High |
$ | 13.08 | $ | 13.09 | $ | 14.15 | $ | 15.75 | $ | 15.11 | $ | 13.81 | $ | 15.95 | $ | 14.05 | ||||||||||||||||
Low |
9.60 | 9.13 | 11.88 | 13.25 | 11.71 | 10.64 | 12.00 | 9.81 | ||||||||||||||||||||||||
End of period |
12.72 | 10.10 | 12.75 | 13.89 | 14.68 | 12.03 | 12.29 | 13.56 | ||||||||||||||||||||||||
Supplemental Data |
||||||||||||||||||||||||||||||||
Common dividends declared ($ in millions) |
$ | 74 | $ | 73 | $ | 55 | $ | 55 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | ||||||||||||||||
Full-time equivalent employees |
21,334 | 21,172 | 20,953 | 20,837 | 20,838 | 20,667 | 20,479 | 20,038 | ||||||||||||||||||||||||
Banking centers |
1,316 | 1,314 | 1,316 | 1,310 | 1,312 | 1,309 | 1,309 | 1,309 | ||||||||||||||||||||||||
ATMs |
2,425 | 2,437 | 2,456 | 2,453 | 2,445 | 2,390 | 2,362 | 2,364 |
(a) | Presented on a fully taxable equivalent basis (FTE). |
(b) | Excludes nonperforming assets held for sale. |
Page 1
Quarterly Data
Three Months Ended | ||||||||||||||||||||||||||||||||
December 31, 2011 |
September 30, 2011 |
June 30, 2011 |
March 31, 2011 |
December 31, 2010 |
September 30, 2010 |
June 30, 2010 |
March 31, 2010 |
|||||||||||||||||||||||||
Income Statement ($ in millions) |
||||||||||||||||||||||||||||||||
Interest income (FTE) |
$ | 1,061 | $ | 1,059 | $ | 1,050 | $ | 1,065 | $ | 1,109 | $ | 1,130 | $ | 1,121 | $ | 1,147 | ||||||||||||||||
Interest expense |
141 | 157 | 181 | 181 | 190 | 214 | 234 | 246 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net interest income (FTE) |
920 | 902 | 869 | 884 | 919 | 916 | 887 | 901 | ||||||||||||||||||||||||
Provision for loan and lease losses |
55 | 87 | 113 | 168 | 166 | 457 | 325 | 590 | ||||||||||||||||||||||||
Noninterest income: |
||||||||||||||||||||||||||||||||
Service charges on deposits |
136 | 134 | 126 | 124 | 140 | 143 | 149 | 142 | ||||||||||||||||||||||||
Investment advisory revenue |
90 | 92 | 95 | 98 | 93 | 90 | 87 | 91 | ||||||||||||||||||||||||
Corporate banking revenue |
82 | 87 | 95 | 86 | 103 | 86 | 93 | 81 | ||||||||||||||||||||||||
Mortgage banking net revenue |
156 | 178 | 162 | 102 | 149 | 232 | 114 | 152 | ||||||||||||||||||||||||
Card and processing revenue |
60 | 78 | 89 | 80 | 81 | 77 | 84 | 73 | ||||||||||||||||||||||||
Other noninterest income |
24 | 64 | 83 | 81 | 55 | 195 | 85 | 74 | ||||||||||||||||||||||||
Securities gains, net |
5 | 26 | 6 | 8 | 21 | 4 | 8 | 14 | ||||||||||||||||||||||||
Securities gains, net - non-qualifying hedges on mortgage servicing rights |
(3 | ) | 6 | | 5 | 14 | | | | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total noninterest income |
550 | 665 | 656 | 584 | 656 | 827 | 620 | 627 | ||||||||||||||||||||||||
Noninterest expense: |
||||||||||||||||||||||||||||||||
Salaries, wages and incentives |
393 | 369 | 365 | 351 | 385 | 360 | 356 | 329 | ||||||||||||||||||||||||
Employee benefits |
84 | 70 | 79 | 97 | 73 | 82 | 73 | 86 | ||||||||||||||||||||||||
Net occupancy expense |
79 | 75 | 75 | 77 | 76 | 72 | 73 | 76 | ||||||||||||||||||||||||
Technology and communications |
48 | 48 | 48 | 45 | 52 | 48 | 45 | 45 | ||||||||||||||||||||||||
Equipment expense |
27 | 28 | 28 | 29 | 32 | 30 | 31 | 30 | ||||||||||||||||||||||||
Card and processing expense |
28 | 34 | 29 | 29 | 26 | 26 | 31 | 25 | ||||||||||||||||||||||||
Other noninterest expense |
334 | 322 | 277 | 290 | 343 | 361 | 326 | 365 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total noninterest expense |
993 | 946 | 901 | 918 | 987 | 979 | 935 | 956 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Income (loss) before income taxes (FTE) |
422 | 534 | 511 | 382 | 422 | 307 | 247 | (18 | ) | |||||||||||||||||||||||
Taxable equivalent adjustment |
4 | 4 | 5 | 5 | 5 | 4 | 5 | 4 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Income (loss) before income taxes |
418 | 530 | 506 | 377 | 417 | 303 | 242 | (22 | ) | |||||||||||||||||||||||
Applicable income tax (benefit) |
104 | 149 | 169 | 112 | 83 | 65 | 50 | (12 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income (loss) |
$ | 314 | $ | 381 | $ | 337 | $ | 265 | $ | 334 | $ | 238 | $ | 192 | $ | (10 | ) | |||||||||||||||
Less: Net income attributable to non controlling interests |
| | | | 1 | | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income (loss) attributable to Bancorp |
$ | 314 | $ | 381 | $ | 337 | $ | 265 | $ | 333 | $ | 238 | $ | 192 | $ | (10 | ) | |||||||||||||||
Dividends on preferred stock |
9 | 8 | 9 | 177 | 63 | 63 | 62 | 62 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income (loss) available to common shareholders |
$ | 305 | $ | 373 | $ | 328 | $ | 88 | $ | 270 | $ | 175 | $ | 130 | $ | (72 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Regulatory Capital Data ($ in millions) (a) |
||||||||||||||||||||||||||||||||
Tier I capital |
$ | 12,496 | $ | 12,266 | $ | 11,972 | $ | 12,129 | $ | 13,965 | $ | 13,698 | $ | 13,462 | $ | 13,297 | ||||||||||||||||
Tier II capital |
4,381 | 4,397 | 4,112 | 4,046 | 4,213 | 4,379 | 4,279 | 4,120 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total risk-based capital |
$ | 16,877 | $ | 16,663 | $ | 16,084 | $ | 16,175 | $ | 18,178 | $ | 18,077 | $ | 17,741 | $ | 17,417 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Risk-weighted assets |
$ | 104,982 | $ | 102,562 | $ | 100,320 | $ | 99,392 | $ | 100,561 | $ | 98,904 | $ | 98,604 | $ | 99,281 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Tier I capital ratio |
11.91 | % | 11.96 | % | 11.93 | % | 12.20 | % | 13.89 | % | 13.85 | % | 13.65 | % | 13.39 | % | ||||||||||||||||
Total risk-based capital ratio |
16.08 | % | 16.25 | % | 16.03 | % | 16.27 | % | 18.08 | % | 18.28 | % | 17.99 | % | 17.54 | % | ||||||||||||||||
Tier I leverage ratio |
11.10 | % | 11.08 | % | 11.03 | % | 11.21 | % | 12.79 | % | 12.54 | % | 12.24 | % | 12.00 | % | ||||||||||||||||
Tier I common equity ratio |
9.34 | % | 9.33 | % | 9.20 | % | 8.99 | % | 7.48 | % | 7.34 | % | 7.17 | % | 6.96 | % |
(a) | Current period regulatory capital data and ratios are estimated. |
Page 2
Quarterly Data
As of | ||||||||||||||||||||||||||||||||
December 31, 2011 |
September 30, 2011 |
June 30, 2011 |
March 31, 2011 |
December 31, 2010 |
September 30, 2010 |
June 30, 2010 |
March 31, 2010 |
|||||||||||||||||||||||||
Balance Sheet ($ in millions, except share data) |
||||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||
Cash and due from banks |
$ | 2,663 | $ | 2,348 | $ | 2,380 | $ | 2,121 | $ | 2,159 | $ | 2,215 | $ | 2,216 | $ | 2,133 | ||||||||||||||||
Available-for-sale and other securities |
15,362 | 16,227 | 15,502 | 15,135 | 15,414 | 15,975 | 16,021 | 16,935 | ||||||||||||||||||||||||
Held-to-maturity securities |
322 | 337 | 344 | 346 | 353 | 354 | 354 | 355 | ||||||||||||||||||||||||
Trading securities |
177 | 189 | 217 | 216 | 294 | 320 | 270 | 305 | ||||||||||||||||||||||||
Other short-term investments |
1,781 | 2,028 | 1,370 | 2,481 | 1,515 | 3,271 | 4,322 | 3,904 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total cash and securities |
20,305 | 21,129 | 19,813 | 20,299 | 19,735 | 22,135 | 23,183 | 23,632 | ||||||||||||||||||||||||
Loans held for sale |
2,954 | 1,840 | 1,185 | 1,291 | 2,216 | 2,733 | 2,150 | 1,607 | ||||||||||||||||||||||||
Portfolio loans and leases |
81,018 | 79,216 | 77,967 | 77,465 | 77,491 | 76,009 | 76,232 | 77,423 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total loans and leases |
83,972 | 81,056 | 79,152 | 78,756 | 79,707 | 78,742 | 78,382 | 79,030 | ||||||||||||||||||||||||
Allowance for loan and lease losses |
(2,255 | ) | (2,439 | ) | (2,614 | ) | (2,805 | ) | (3,004 | ) | (3,194 | ) | (3,693 | ) | (3,802 | ) | ||||||||||||||||
Bank premises and equipment |
2,447 | 2,410 | 2,395 | 2,389 | 2,389 | 2,377 | 2,374 | 2,384 | ||||||||||||||||||||||||
Operating lease equipment |
497 | 462 | 492 | 513 | 479 | 470 | 489 | 492 | ||||||||||||||||||||||||
Goodwill |
2,417 | 2,417 | 2,417 | 2,417 | 2,417 | 2,417 | 2,417 | 2,417 | ||||||||||||||||||||||||
Intangible assets |
40 | 45 | 49 | 55 | 62 | 72 | 83 | 94 | ||||||||||||||||||||||||
Servicing rights |
681 | 662 | 847 | 894 | 822 | 599 | 646 | 725 | ||||||||||||||||||||||||
Other real estate owned |
429 | 447 | 488 | 514 | 506 | 504 | 454 | 399 | ||||||||||||||||||||||||
Other assets |
8,434 | 8,716 | 7,766 | 7,453 | 7,894 | 8,200 | 7,690 | 7,280 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total assets |
$ | 116,967 | $ | 114,905 | $ | 110,805 | $ | 110,485 | $ | 111,007 | $ | 112,322 | $ | 112,025 | $ | 112,651 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||
Deposits: |
||||||||||||||||||||||||||||||||
Demand |
$ | 27,600 | $ | 24,547 | $ | 22,589 | $ | 22,066 | $ | 21,413 | $ | 20,109 | $ | 19,256 | $ | 19,482 | ||||||||||||||||
Interest checking |
20,392 | 18,616 | 18,072 | 18,597 | 18,560 | 17,225 | 17,759 | 19,126 | ||||||||||||||||||||||||
Savings |
21,756 | 21,673 | 21,764 | 21,697 | 20,903 | 20,260 | 19,646 | 19,099 | ||||||||||||||||||||||||
Money market |
4,989 | 5,448 | 4,859 | 5,184 | 5,035 | 5,064 | 4,666 | 4,782 | ||||||||||||||||||||||||
Foreign office |
3,250 | 3,139 | 3,271 | 3,569 | 3,721 | 3,807 | 3,430 | 2,844 | ||||||||||||||||||||||||
Other time |
4,638 | 5,439 | 6,399 | 7,043 | 7,728 | 9,379 | 10,966 | 11,643 | ||||||||||||||||||||||||
Certificates - $100,000 and over |
3,039 | 3,092 | 3,642 | 4,160 | 4,287 | 5,515 | 6,389 | 6,596 | ||||||||||||||||||||||||
Other foreign office |
46 | 93 | 2 | 1 | 1 | 3 | 3 | 2 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total deposits |
85,710 | 82,047 | 80,598 | 82,317 | 81,648 | 81,362 | 82,115 | 83,574 | ||||||||||||||||||||||||
Federal funds purchased |
346 | 427 | 403 | 332 | 279 | 368 | 240 | 271 | ||||||||||||||||||||||||
Other short-term borrowings |
3,239 | 4,894 | 2,702 | 1,297 | 1,574 | 1,775 | 1,556 | 1,359 | ||||||||||||||||||||||||
Other liabilities |
4,739 | 4,679 | 4,349 | 3,792 | 3,868 | 3,951 | 3,424 | 3,092 | ||||||||||||||||||||||||
Long-term debt |
9,682 | 9,800 | 10,152 | 10,555 | 9,558 | 10,953 | 10,989 | 10,947 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total liabilities |
103,716 | 101,847 | 98,204 | 98,293 | 96,927 | 98,409 | 98,324 | 99,243 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Equity |
||||||||||||||||||||||||||||||||
Common and preferred equity |
12,795 | 12,552 | 12,242 | 12,025 | 13,867 | 13,584 | 13,395 | 13,321 | ||||||||||||||||||||||||
Net unrealized gains (losses): |
||||||||||||||||||||||||||||||||
Available-for-sale securities |
484 | 519 | 397 | 277 | 321 | 434 | 432 | 268 | ||||||||||||||||||||||||
Qualifying cash flow hedges |
81 | 91 | 68 | 58 | 67 | 73 | 84 | 98 | ||||||||||||||||||||||||
Accumulated other comprehensive income related to employee benefit plans |
(95 | ) | (68 | ) | (69 | ) | (72 | ) | (74 | ) | (75 | ) | (76 | ) | (78 | ) | ||||||||||||||||
Treasury stock, at cost |
(64 | ) | (65 | ) | (66 | ) | (125 | ) | (130 | ) | (132 | ) | (134 | ) | (201 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Bancorp shareholders equity |
13,201 | 13,029 | 12,572 | 12,163 | 14,051 | 13,884 | 13,701 | 13,408 | ||||||||||||||||||||||||
Noncontrolling interest |
50 | 29 | 29 | 29 | 29 | 29 | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total equity |
13,251 | 13,058 | 12,601 | 12,192 | 14,080 | 13,913 | 13,701 | 13,408 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total liabilities & equity |
$ | 116,967 | $ | 114,905 | $ | 110,805 | $ | 110,485 | $ | 111,007 | $ | 112,322 | $ | 112,025 | $ | 112,651 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Share Data |
||||||||||||||||||||||||||||||||
Preferred shares outstanding |
16,450 | 16,450 | 16,450 | 16,450 | 152,771 | 152,771 | 152,771 | 152,771 | ||||||||||||||||||||||||
Common shares outstanding, excluding treasury |
919,804,436 | 919,778,512 | 919,818,137 | 918,728,008 | 796,272,522 | 796,283,198 | 796,319,712 | 794,816,131 | ||||||||||||||||||||||||
Treasury shares held |
4,088,144 | 4,114,068 | 4,074,443 | 5,164,573 | 5,231,665 | 5,220,989 | 5,184,475 | 6,688,056 |
Page 3
Quarterly Data
Three Months Ended | ||||||||||||||||||||||||||||||||
December 31, 2011 |
September 30, 2011 |
June 30, 2011 |
March 31, 2011 |
December 31, 2010 |
September 30, 2010 |
June 30, 2010 |
March 31, 2010 |
|||||||||||||||||||||||||
Average Balance Sheet ($ in millions, except share data) |
||||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||||||||||||||
Loans and leases |
$ | 82,278 | $ | 80,013 | $ | 79,153 | $ | 79,379 | $ | 79,148 | $ | 78,854 | $ | 78,807 | $ | 80,136 | ||||||||||||||||
Taxable securities |
15,270 | 15,790 | 15,115 | 15,156 | 15,367 | 15,580 | 16,263 | 17,030 | ||||||||||||||||||||||||
Tax exempt securities |
58 | 64 | 96 | 197 | 268 | 273 | 343 | 385 | ||||||||||||||||||||||||
Other short-term investments |
1,915 | 2,288 | 1,981 | 1,937 | 2,431 | 3,456 | 4,285 | 3,144 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-earning assets |
99,521 | 98,155 | 96,345 | 96,669 | 97,214 | 98,163 | 99,698 | 100,695 | ||||||||||||||||||||||||
Cash and due from banks |
2,418 | 2,362 | 2,356 | 2,268 | 2,284 | 2,283 | 2,163 | 2,247 | ||||||||||||||||||||||||
Other assets |
15,758 | 15,381 | 15,298 | 14,897 | 15,449 | 15,088 | 14,550 | 14,262 | ||||||||||||||||||||||||
Allowance for loan and lease losses |
(2,429 | ) | (2,603 | ) | (2,799 | ) | (2,990 | ) | (3,089 | ) | (3,680 | ) | (3,798 | ) | (3,771 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total assets |
$ | 115,268 | $ | 113,295 | $ | 111,200 | $ | 110,844 | $ | 111,858 | $ | 111,854 | $ | 112,613 | $ | 113,433 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||||||||||||||
Interest checking |
$ | 19,263 | $ | 18,322 | $ | 18,701 | $ | 18,539 | $ | 17,578 | $ | 17,142 | $ | 18,652 | $ | 19,533 | ||||||||||||||||
Savings |
21,715 | 21,747 | 21,817 | 21,324 | 20,602 | 19,905 | 19,446 | 18,469 | ||||||||||||||||||||||||
Money market |
5,255 | 5,213 | 5,009 | 5,136 | 4,985 | 4,940 | 4,679 | 4,622 | ||||||||||||||||||||||||
Foreign office |
3,325 | 3,255 | 3,805 | 3,580 | 3,733 | 3,592 | 3,325 | 2,757 | ||||||||||||||||||||||||
Other time |
4,960 | 6,008 | 6,738 | 7,363 | 8,490 | 10,261 | 11,336 | 12,059 | ||||||||||||||||||||||||
Certificates - $100,000 and over |
3,085 | 3,376 | 3,955 | 4,226 | 4,858 | 6,096 | 6,354 | 7,049 | ||||||||||||||||||||||||
Other foreign office |
16 | 7 | 2 | 1 | 9 | 4 | 5 | 8 | ||||||||||||||||||||||||
Federal funds purchased |
348 | 376 | 344 | 310 | 376 | 302 | 264 | 220 | ||||||||||||||||||||||||
Other short-term borrowings |
3,793 | 4,033 | 1,605 | 1,638 | 1,728 | 1,880 | 1,478 | 1,449 | ||||||||||||||||||||||||
Long-term debt |
9,707 | 10,136 | 10,527 | 10,255 | 10,298 | 10,954 | 10,876 | 11,489 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-bearing liabilities |
71,467 | 72,473 | 72,503 | 72,372 | 72,657 | 75,076 | 76,415 | 77,655 | ||||||||||||||||||||||||
Demand deposits |
26,069 | 23,677 | 22,174 | 21,582 | 21,066 | 19,362 | 19,406 | 18,822 | ||||||||||||||||||||||||
Other liabilities |
4,536 | 4,275 | 4,129 | 3,809 | 4,099 | 3,544 | 3,229 | 3,438 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total liabilities |
102,074 | 100,425 | 98,806 | 97,763 | 97,822 | 97,982 | 99,050 | 99,915 | ||||||||||||||||||||||||
Equity |
13,196 | 12,870 | 12,394 | 13,081 | 14,036 | 13,872 | 13,563 | 13,518 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total liabilities & equity |
$ | 115,270 | $ | 113,295 | $ | 111,200 | $ | 110,844 | $ | 111,858 | $ | 111,854 | $ | 112,613 | $ | 113,433 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Average loans and leases (excluding held for sale) |
$ | 79,914 | $ | 78,620 | $ | 77,937 | $ | 77,636 | $ | 76,236 | $ | 76,617 | $ | 76,973 | $ | 78,381 | ||||||||||||||||
Average common shares outstanding: |
||||||||||||||||||||||||||||||||
Basic |
914,996,543 | 914,946,545 | 914,600,600 | 880,829,800 | 791,072,308 | 791,016,740 | 790,838,716 | 790,472,577 | ||||||||||||||||||||||||
Diluted |
956,348,893 | 955,490,439 | 955,477,616 | 894,841,321 | 836,224,575 | 797,492,107 | 802,254,845 | 790,472,577 |
Page 4
Quarterly Data | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
December 31, 2011 |
September 30, 2011 |
June 30, 2011 |
March 31, 2011 |
December 31, 2010 |
September 30, 2010 |
June 30, 2010 |
March 31, 2010 |
|||||||||||||||||||||||||
(net of unearned discount) | ||||||||||||||||||||||||||||||||
End of Period Loans and Leases ($ in millions) |
| |||||||||||||||||||||||||||||||
Commercial: |
||||||||||||||||||||||||||||||||
Commercial and industrial loans |
$ | 30,828 | $ | 29,324 | $ | 28,155 | $ | 27,431 | $ | 27,274 | $ | 26,502 | $ | 26,011 | $ | 26,134 | ||||||||||||||||
Commercial mortgage |
10,214 | 10,435 | 10,331 | 10,617 | 10,992 | 11,333 | 11,569 | 11,865 | ||||||||||||||||||||||||
Commercial construction |
1,037 | 1,239 | 1,805 | 2,020 | 2,111 | 2,500 | 3,042 | 3,396 | ||||||||||||||||||||||||
Commercial leases |
3,531 | 3,368 | 3,326 | 3,367 | 3,378 | 3,304 | 3,271 | 3,388 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Subtotal - commercial |
45,610 | 44,366 | 43,617 | 43,435 | 43,755 | 43,639 | 43,893 | 44,783 | ||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||||||
Residential mortgage |
13,474 | 11,878 | 10,838 | 10,557 | 10,858 | 9,989 | 9,672 | 9,239 | ||||||||||||||||||||||||
Home equity |
10,719 | 10,920 | 11,048 | 11,222 | 11,513 | 11,774 | 11,987 | 12,186 | ||||||||||||||||||||||||
Automobile loans |
11,827 | 11,593 | 11,315 | 11,129 | 10,983 | 10,738 | 10,285 | 10,180 | ||||||||||||||||||||||||
Credit card |
1,978 | 1,878 | 1,856 | 1,821 | 1,896 | 1,832 | 1,841 | 1,863 | ||||||||||||||||||||||||
Other consumer loans and leases |
364 | 421 | 478 | 592 | 702 | 770 | 704 | 779 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Subtotal - consumer |
38,362 | 36,690 | 35,535 | 35,321 | 35,952 | 35,103 | 34,489 | 34,247 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total loans and leases |
$ | 83,972 | $ | 81,056 | $ | 79,152 | $ | 78,756 | $ | 79,707 | $ | 78,742 | $ | 78,382 | $ | 79,030 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(net of unearned discount) | ||||||||||||||||||||||||||||||||
Average Loans and Leases ($ in millions) |
| |||||||||||||||||||||||||||||||
Commercial: |
||||||||||||||||||||||||||||||||
Commercial and industrial loans |
$ | 29,954 | $ | 28,824 | $ | 27,970 | $ | 27,404 | $ | 26,509 | $ | 26,348 | $ | 26,179 | $ | 26,299 | ||||||||||||||||
Commercial mortgage |
10,350 | 10,140 | 10,491 | 10,816 | 11,276 | 11,462 | 11,772 | 11,836 | ||||||||||||||||||||||||
Commercial construction |
1,155 | 1,777 | 1,950 | 2,085 | 2,289 | 2,955 | 3,258 | 3,781 | ||||||||||||||||||||||||
Commercial leases |
3,352 | 3,300 | 3,349 | 3,364 | 3,314 | 3,257 | 3,336 | 3,468 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Subtotal - commercial |
44,811 | 44,041 | 43,760 | 43,669 | 43,388 | 44,022 | 44,545 | 45,384 | ||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||||||
Residential mortgage |
12,638 | 11,224 | 10,655 | 10,736 | 10,693 | 9,897 | 9,390 | 9,478 | ||||||||||||||||||||||||
Home equity |
10,810 | 10,985 | 11,144 | 11,376 | 11,655 | 11,897 | 12,102 | 12,338 | ||||||||||||||||||||||||
Automobile loans |
11,696 | 11,445 | 11,188 | 11,070 | 10,825 | 10,517 | 10,170 | 10,185 | ||||||||||||||||||||||||
Credit card |
1,906 | 1,864 | 1,834 | 1,852 | 1,844 | 1,838 | 1,859 | 1,940 | ||||||||||||||||||||||||
Other consumer loans and leases |
417 | 454 | 572 | 676 | 743 | 683 | 741 | 811 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Subtotal - consumer |
37,467 | 35,972 | 35,393 | 35,710 | 35,760 | 34,832 | 34,262 | 34,752 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total average loans and leases |
$ | 82,278 | $ | 80,013 | $ | 79,153 | $ | 79,379 | $ | 79,148 | $ | 78,854 | $ | 78,807 | $ | 80,136 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Asset Quality ($ in millions) |
||||||||||||||||||||||||||||||||
Nonaccrual portfolio loans and leases |
$ | 1,058 | $ | 1,134 | $ | 1,240 | $ | 1,287 | $ | 1,333 | $ | 1,378 | $ | 2,236 | $ | 2,423 | ||||||||||||||||
Nonaccrual loans held for sale |
131 | 171 | 147 | 184 | 247 | 680 | 163 | 239 | ||||||||||||||||||||||||
Restructured loans - commercial (non accrual) held for sale |
7 | 26 | 29 | 32 | 47 | 19 | 4 | 4 | ||||||||||||||||||||||||
Restructured loans and leases (non accrual) portfolio |
380 | 404 | 399 | 358 | 347 | 206 | 294 | 310 | ||||||||||||||||||||||||
Other assets, including other real estate owned |
378 | 406 | 449 | 481 | 494 | 498 | 439 | 396 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total nonperforming assets |
$ | 1,954 | $ | 2,141 | $ | 2,264 | $ | 2,342 | $ | 2,468 | $ | 2,781 | $ | 3,136 | $ | 3,372 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Ninety days past due loans and leases |
$ | 200 | $ | 274 | $ | 279 | $ | 266 | $ | 274 | $ | 317 | $ | 397 | $ | 436 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(non-accrual plus renegotiated) | ||||||||||||||||||||||||||||||||
Nonperforming Loans ($ in millions) |
| |||||||||||||||||||||||||||||||
Commercial and industrial loans and leases |
$ | 499 | $ | 646 | $ | 684 | $ | 652 | $ | 753 | $ | 769 | $ | 800 | $ | 828 | ||||||||||||||||
Commercial mortgage |
421 | 513 | 558 | 559 | 581 | 820 | 878 | 980 | ||||||||||||||||||||||||
Commercial construction loans |
139 | 194 | 187 | 208 | 258 | 371 | 469 | 606 | ||||||||||||||||||||||||
Consumer mortgage and construction |
275 | 276 | 272 | 261 | 268 | 208 | 435 | 408 | ||||||||||||||||||||||||
Other consumer loans and leases |
104 | 108 | 114 | 181 | 114 | 115 | 115 | 153 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total nonperforming loans and leases (including held for sale) |
$ | 1,438 | $ | 1,737 | $ | 1,815 | $ | 1,861 | $ | 1,974 | $ | 2,283 | $ | 2,697 | $ | 2,975 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Credit Charge-Offs ($ in millions) |
|
|||||||||||||||||||||||||||||||
Gross charge-offs |
$ | (280 | ) | $ | (294 | ) | $ | (343 | ) | $ | (397 | ) | $ | (399 | ) | $ | (992 | ) | $ | (472 | ) | $ | (622 | ) | ||||||||
Recoveries |
41 | 32 | 39 | 30 | 43 | 36 | 38 | 40 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net losses charged off |
$ | (239 | ) | $ | (262 | ) | $ | (304 | ) | $ | (367 | ) | $ | (356 | ) | $ | (956 | ) | $ | (434 | ) | $ | (582 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 5
Exhibit 99.4
January 2012
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 Thirds Investor Relations Department at (513) 534-3945 or IR@53.com
Jim Eglseder | Rich Rosen | |||||
VP / Investor Relations | VP / Investor Relations | |||||
(513) 534-8424 | (513) 534-3307 |
Yearly Data
Years Ended December 31, | ||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Ratios (percent) |
||||||||||||||||||||
Return on assets |
1.15 | 0.67 | 0.64 | (1.85 | ) | 1.05 | ||||||||||||||
Return on average common equity |
9.0 | 5.0 | 5.6 | (23.0 | ) | 11.2 | ||||||||||||||
Average equity as a percent of average assets |
11.41 | 12.22 | 11.36 | 8.78 | 9.35 | |||||||||||||||
Net interest margin (a) |
3.66 | 3.66 | 3.32 | 3.54 | 3.36 | |||||||||||||||
Efficiency (a) |
62.3 | 60.7 | 46.9 | 70.4 | 60.2 | |||||||||||||||
Net losses charged off as a percent of average loans and leases |
1.49 | 3.02 | 3.20 | 3.23 | 0.61 | |||||||||||||||
Allowance for loan and lease losses as a percent of loans and leases |
2.78 | 3.88 | 4.88 | 3.31 | 1.17 | |||||||||||||||
Allowance for credit losses as a percent of loans and leases |
3.01 | 4.17 | 5.27 | 3.54 | 1.29 | |||||||||||||||
Nonperforming assets as a percent of loans, leases and other assets, including OREO (b) |
2.23 | 2.79 | 4.22 | 2.38 | 1.32 | |||||||||||||||
Allowance for loan and lease losses as a percent of nonperforming assets (b) |
124.17 | 138.18 | 115.55 | 138.93 | 88.06 | |||||||||||||||
Allowance for credit losses as a percent of nonperforming |
134.13 | 148.62 | 124.63 | 148.64 | 96.97 | |||||||||||||||
Common Share Data |
||||||||||||||||||||
Earnings per share |
$ | 1.20 | $ | 0.63 | $ | 0.73 | $ | (3.91 | ) | $ | 1.99 | |||||||||
Earnings per diluted share |
1.18 | 0.63 | 0.67 | (3.91 | ) | 1.98 | ||||||||||||||
Cash dividends per common share |
0.28 | 0.04 | 0.04 | 0.75 | 1.70 | |||||||||||||||
Book value per share |
13.92 | 13.06 | 12.44 | 13.57 | 17.24 | |||||||||||||||
Common shares outstanding, excluding treasury |
919,804,436 | 796,272,522 | 795,068,164 | 577,386,612 | 532,671,925 | |||||||||||||||
Market price per share: |
||||||||||||||||||||
High |
$ | 15.75 | $ | 15.95 | $ | 11.20 | $ | 28.58 | $ | 43.32 | ||||||||||
Low |
9.13 | 9.81 | 1.01 | 6.32 | 24.82 | |||||||||||||||
Close |
12.72 | 14.68 | 9.75 | 8.26 | 25.13 | |||||||||||||||
Supplemental Data |
||||||||||||||||||||
Common dividends declared ($ in millions) |
$ | 257 | $ | 32 | $ | 29 | $ | 413 | $ | 914 | ||||||||||
Full-time equivalent employees |
21,334 | 20,838 | 20,998 | 21,476 | 21,683 | |||||||||||||||
Banking centers |
1,316 | 1,312 | 1,309 | 1,307 | 1,227 | |||||||||||||||
ATMs |
2,425 | 2,445 | 2,358 | 2,341 | 2,211 |
(a) | Presented on a fully taxable equivalent basis (FTE). |
(b) | Excludes nonperforming assets held for sale. |
Page 1
Yearly Data |
||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Income Statement ($ in millions) |
||||||||||||||||||||
Interest income (FTE) |
$ | 4,236 | $ | 4,507 | $ | 4,687 | $ | 5,630 | $ | 6,051 | ||||||||||
Interest expense |
661 | 885 | 1,314 | 2,094 | 3,018 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net interest income (FTE) |
3,575 | 3,622 | 3,373 | 3,536 | 3,033 | |||||||||||||||
Provision for loan and lease losses |
423 | 1,538 | 3,543 | 4,560 | 628 | |||||||||||||||
Noninterest income: |
||||||||||||||||||||
Service charges on deposits |
520 | 574 | 632 | 641 | 579 | |||||||||||||||
Investment advisory revenue |
375 | 361 | 326 | 366 | 382 | |||||||||||||||
Corporate banking revenue |
350 | 364 | 372 | 431 | 367 | |||||||||||||||
Mortgage banking net revenue |
597 | 647 | 553 | 199 | 133 | |||||||||||||||
Card and processing revenue |
308 | 316 | 615 | 912 | 825 | |||||||||||||||
Gain on sale of processing business |
| | 1,758 | | | |||||||||||||||
Other noninterest income |
250 | 406 | 479 | 363 | 154 | |||||||||||||||
Securities gains (losses), net |
46 | 47 | (10 | ) | (86 | ) | 21 | |||||||||||||
Securities gains, net - non-qualifying hedges on mortgage servicing rights |
9 | 14 | 57 | 120 | 6 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total noninterest income |
2,455 | 2,729 | 4,782 | 2,946 | 2,467 | |||||||||||||||
Noninterest expense: |
||||||||||||||||||||
Salaries, wages, and incentives |
1,478 | 1,430 | 1,339 | 1,337 | 1,239 | |||||||||||||||
Employee benefits |
330 | 314 | 311 | 278 | 278 | |||||||||||||||
Net occupancy expense |
305 | 298 | 308 | 300 | 269 | |||||||||||||||
Technology and communications |
188 | 189 | 181 | 191 | 169 | |||||||||||||||
Equipment expense |
113 | 122 | 123 | 130 | 123 | |||||||||||||||
Card and processing expense |
120 | 108 | 193 | 274 | 244 | |||||||||||||||
Other noninterest expense |
1,224 | 1,394 | 1,371 | 2,054 | 989 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total noninterest expense |
3,758 | 3,855 | 3,826 | 4,564 | 3,311 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) before income taxes and cumulative effect (FTE) |
1,849 | 958 | 786 | (2,642 | ) | 1,561 | ||||||||||||||
Taxable equivalent adjustment |
18 | 18 | 19 | 22 | 24 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) before income taxes and cumulative effect |
1,831 | 940 | 767 | (2,664 | ) | 1,537 | ||||||||||||||
Applicable income taxes |
533 | 187 | 30 | (551 | ) | 461 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) before cumulative effect |
1,298 | 753 | 737 | (2,113 | ) | 1,076 | ||||||||||||||
Cumulative effect of change in accounting principle, net of tax |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) |
$ | 1,298 | $ | 753 | $ | 737 | $ | (2,113 | ) | $ | 1,076 | |||||||||
Less: Net income attributable to noncontrolling interests |
1 | | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) attributable to Bancorp |
1,297 | 753 | 737 | (2,113 | ) | 1,076 | ||||||||||||||
Dividend on Preferred Stock |
203 | 250 | 226 | 67 | 1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) available to common shareholders |
$ | 1,094 | $ | 503 | $ | 511 | $ | (2,180 | ) | $ | 1,075 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Regulatory Capital Data ($ in millions) (a) |
||||||||||||||||||||
Tier I capital |
$ | 12,496 | $ | 13,965 | $ | 13,428 | $ | 11,924 | $ | 8,924 | ||||||||||
Tier II capital |
4,381 | 4,208 | 4,207 | 4,722 | 2,809 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total risk-based capital |
$ | 16,877 | $ | 18,173 | $ | 17,635 | $ | 16,646 | $ | 11,733 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Risk-weighted assets |
$ | 104,982 | $ | 100,193 | $ | 100,933 | $ | 112,622 | $ | 115,529 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tier I capital ratio |
11.91 | % | 13.94 | % | 13.30 | % | 10.59 | % | 7.72 | % | ||||||||||
Total risk-based capital ratio |
16.08 | % | 18.14 | % | 17.48 | % | 14.78 | % | 10.16 | % | ||||||||||
Tier I leverage ratio |
11.10 | % | 12.79 | % | 12.34 | % | 10.27 | % | 8.50 | % | ||||||||||
Tier I common equity ratio |
9.34 | % | 7.50 | % | 6.99 | % | 4.37 | % | 5.72 | % |
(a) | 2009 regulatory capital data and ratios are estimated. |
Page 2
Yearly Data |
||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Balance Sheet ($ in millions, except share data) |
||||||||||||||||||||
Assets |
||||||||||||||||||||
Cash and due from banks |
$ | 2,663 | $ | 2,159 | $ | 2,318 | $ | 2,739 | $ | 2,660 | ||||||||||
Available-for-sale securities |
15,362 | 15,414 | 18,213 | 12,728 | 10,677 | |||||||||||||||
Held-to-maturity securities |
322 | 353 | 355 | 360 | 355 | |||||||||||||||
Trading securities |
177 | 294 | 355 | 1,191 | 171 | |||||||||||||||
Other short-term investments |
1,781 | 1,515 | 3,369 | 3,578 | 620 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total cash and securities |
20,305 | 19,735 | 24,610 | 20,596 | 14,483 | |||||||||||||||
Loans held for sale |
2,954 | 2,216 | 2,067 | 1,452 | 4,329 | |||||||||||||||
Portfolio loans and leases |
81,018 | 77,491 | 76,779 | 84,143 | 80,253 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total loans and leases |
83,972 | 79,707 | 78,846 | 85,595 | 84,582 | |||||||||||||||
Allowance for loan and lease losses |
(2,255 | ) | (3,004 | ) | (3,749 | ) | (2,787 | ) | (937 | ) | ||||||||||
Bank premises and equipment |
2,447 | 2,389 | 2,400 | 2,494 | 2,223 | |||||||||||||||
Operating lease equipment |
497 | 479 | 499 | 463 | 353 | |||||||||||||||
Goodwill |
2,417 | 2,417 | 2,417 | 2,624 | 2,470 | |||||||||||||||
Intangible assets |
40 | 62 | 106 | 168 | 147 | |||||||||||||||
Servicing rights |
681 | 822 | 700 | 499 | 618 | |||||||||||||||
Other real estate owned |
429 | 506 | 300 | 231 | 159 | |||||||||||||||
Other assets |
8,434 | 7,894 | 7,251 | 9,881 | 9,087 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 116,967 | $ | 111,007 | $ | 113,380 | $ | 119,764 | $ | 110,962 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Demand |
$ | 27,600 | $ | 21,413 | $ | 19,411 | $ | 15,287 | $ | 14,404 | ||||||||||
Interest checking |
20,392 | 18,560 | 19,935 | 14,222 | 15,254 | |||||||||||||||
Savings |
21,756 | 20,903 | 17,898 | 16,063 | 15,635 | |||||||||||||||
Money market |
4,989 | 5,035 | 4,431 | 4,689 | 6,521 | |||||||||||||||
Foreign Office |
3,250 | 3,721 | 2,454 | 2,144 | 2,572 | |||||||||||||||
Other time |
4,638 | 7,728 | 12,466 | 14,350 | 11,440 | |||||||||||||||
Certificates - $100,000 and over |
3,039 | 4,287 | 7,700 | 11,851 | 6,738 | |||||||||||||||
Other foreign office |
46 | 1 | 10 | 7 | 2,881 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total deposits |
85,710 | 81,648 | 84,305 | 78,613 | 75,445 | |||||||||||||||
Federal funds purchased |
346 | 279 | 182 | 287 | 4,427 | |||||||||||||||
Other short-term borrowings |
3,239 | 1,574 | 1,415 | 9,959 | 4,747 | |||||||||||||||
Other liabilities |
4,739 | 3,868 | 3,474 | 5,243 | 4,325 | |||||||||||||||
Long-term debt |
9,682 | 9,558 | 10,507 | 13,585 | 12,857 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
103,716 | 96,927 | 99,883 | 107,687 | 101,801 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Equity |
||||||||||||||||||||
Common and preferred equity |
12,795 | 13,867 | 13,457 | 12,208 | 11,496 | |||||||||||||||
Net unrealized gains (losses): |
||||||||||||||||||||
Available-for-sale securities |
484 | 321 | 216 | 115 | (93 | ) | ||||||||||||||
Qualifying cash flow hedges |
81 | 67 | 105 | 88 | 24 | |||||||||||||||
Accumulated other comprehensive income related to employee benefit plans |
(95 | ) | (74 | ) | (80 | ) | (105 | ) | (57 | ) | ||||||||||
Treasury stock, at cost |
(64 | ) | (130 | ) | (201 | ) | (229 | ) | (2,209 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total shareholders equity |
13,201 | 14,051 | 13,497 | 12,077 | 9,161 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noncontrolling interest |
50 | 29 | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Equity |
13,251 | 14,080 | 13,497 | 12,077 | 9,161 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities & equity |
$ | 116,967 | $ | 111,007 | $ | 113,380 | $ | 119,764 | $ | 110,962 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Share Data |
||||||||||||||||||||
Preferred shares outstanding |
16,450 | 152,771 | 152,771 | 180,620 | 9,250 | |||||||||||||||
Common shares outstanding, excluding treasury |
919,804,436 | 796,272,522 | 795,068,164 | 577,386,612 | 532,671,925 | |||||||||||||||
Treasury shares held |
4,088,144 | 5,231,665 | 6,436,023 | 6,040,492 | 50,755,179 |
Page 3
Yearly Data |
||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Average Balance Sheet ($ in millions, except share data) |
|
|||||||||||||||||||
Assets |
||||||||||||||||||||
Interest-earning assets: |
||||||||||||||||||||
Loans and leases |
$ | 80,214 | $ | 79,232 | $ | 83,391 | $ | 85,835 | $ | 78,348 | ||||||||||
Taxable securities |
15,334 | 16,054 | 15,897 | 13,082 | 11,131 | |||||||||||||||
Tax exempt securities |
103 | 317 | 1,203 | 342 | 499 | |||||||||||||||
Other short-term investments |
2,031 | 3,328 | 1,035 | 621 | 404 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total interest-earning assets |
97,682 | 98,931 | 101,526 | 99,880 | 90,382 | |||||||||||||||
Cash and due from banks |
2,352 | 2,245 | 2,329 | 2,490 | 2,275 | |||||||||||||||
Other assets |
15,335 | 14,841 | 14,266 | 13,411 | 10,613 | |||||||||||||||
Allowance for loan and lease losses |
(2,703 | ) | (3,583 | ) | (3,265 | ) | (1,485 | ) | (793 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 112,666 | $ | 112,434 | $ | 114,856 | $ | 114,296 | $ | 102,477 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities |
||||||||||||||||||||
Interest-bearing liabilities: |
||||||||||||||||||||
Interest checking |
$ | 18,707 | $ | 18,218 | $ | 15,070 | $ | 14,191 | $ | 14,820 | ||||||||||
Savings |
21,652 | 19,612 | 16,875 | 16,192 | 14,836 | |||||||||||||||
Money market |
5,154 | 4,808 | 4,320 | 6,127 | 6,308 | |||||||||||||||
Foreign office |
3,490 | 3,355 | 2,108 | 2,153 | 1,762 | |||||||||||||||
Other time |
6,260 | 10,526 | 14,103 | 11,135 | 10,778 | |||||||||||||||
Certificates - $100,000 and over |
3,656 | 6,083 | 10,367 | 9,532 | 6,466 | |||||||||||||||
Other foreign office |
7 | 6 | 157 | 2,066 | 1,393 | |||||||||||||||
Federal funds purchased |
345 | 291 | 517 | 2,975 | 3,646 | |||||||||||||||
Short-term borrowings |
2,777 | 1,635 | 6,463 | 7,785 | 3,244 | |||||||||||||||
Long-term debt |
10,154 | 10,902 | 11,035 | 13,903 | 12,505 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total interest-bearing liabilities |
72,202 | 75,436 | 81,015 | 86,059 | 75,758 | |||||||||||||||
Demand deposits |
23,389 | 19,669 | 16,862 | 14,017 | 13,261 | |||||||||||||||
Other liabilities |
4,189 | 3,580 | 3,926 | 4,182 | 3,876 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
99,780 | 98,685 | 101,803 | 104,258 | 92,894 | |||||||||||||||
Equity |
12,886 | 13,749 | 13,053 | 10,038 | 9,583 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities & equity |
$ | 112,666 | $ | 112,434 | $ | 114,856 | $ | 114,296 | $ | 102,477 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Average loans and leases (excluding held for sale) |
$ | 78,533 | $ | 77,045 | $ | 80,681 | $ | 83,895 | $ | 76,033 | ||||||||||
Average common shares outstanding: |
||||||||||||||||||||
Basic |
906,460,550 | 790,852,185 | 696,452,466 | 553,112,898 | 537,669,793 | |||||||||||||||
Diluted |
949,545,420 | 799,381,153 | 726,508,263 | 553,112,898 | 540,118,386 |
Page 4
Yearly Data | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
(net of unearned discount) | ||||||||||||||||||||
End of Period Loans and Leases ($ in millions) |
||||||||||||||||||||
Commercial: |
||||||||||||||||||||
Commercial loans |
$ | 30,828 | $ | 27,274 | $ | 25,687 | $ | 29,220 | $ | 26,079 | ||||||||||
Commercial mortgage |
10,214 | 10,992 | 11,936 | 12,952 | 11,967 | |||||||||||||||
Commercial construction |
1,037 | 2,111 | 3,871 | 5,114 | 5,561 | |||||||||||||||
Commercial leases |
3,531 | 3,378 | 3,535 | 3,666 | 3,737 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal - commercial |
45,610 | 43,755 | 45,029 | 50,952 | 47,344 | |||||||||||||||
Consumer: |
||||||||||||||||||||
Residential mortgage |
13,474 | 10,858 | 9,845 | 10,292 | 11,433 | |||||||||||||||
Home equity |
10,719 | 11,513 | 12,174 | 12,752 | 11,874 | |||||||||||||||
Automobile loans |
11,827 | 10,983 | 8,995 | 8,594 | 11,183 | |||||||||||||||
Credit card |
1,978 | 1,896 | 1,990 | 1,811 | 1,591 | |||||||||||||||
Other consumer loans and leases |
364 | 702 | 813 | 1,198 | 1,157 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal - consumer |
38,362 | 35,952 | 33,817 | 34,647 | 37,238 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total loans and leases |
$ | 83,972 | $ | 79,707 | $ | 78,846 | $ | 85,599 | $ | 84,582 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(net of unearned discount) | ||||||||||||||||||||
Average Loans and Leases ($ in millions) |
||||||||||||||||||||
Commercial: |
||||||||||||||||||||
Commercial loans |
$ | 28,546 | $ | 26,334 | $ | 27,556 | $ | 28,426 | $ | 22,351 | ||||||||||
Commercial mortgage |
10,447 | 11,585 | $ | 12,511 | 12,776 | 11,078 | ||||||||||||||
Commercial construction |
1,740 | 3,066 | $ | 4,638 | 5,846 | 5,661 | ||||||||||||||
Commercial leases |
3,341 | 3,343 | $ | 3,543 | 3,680 | 3,683 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal - commercial |
44,074 | 44,328 | $ | 48,248 | 50,728 | 42,773 | ||||||||||||||
Consumer: |
||||||||||||||||||||
Residential mortgage |
11,318 | 9,868 | $ | 10,886 | 10,993 | 10,489 | ||||||||||||||
Home equity |
11,077 | 11,996 | $ | 12,534 | 12,269 | 11,887 | ||||||||||||||
Automobile loans |
11,352 | 10,427 | $ | 8,807 | 8,925 | 10,704 | ||||||||||||||
Credit card |
1,864 | 1,870 | $ | 1,907 | 1,708 | 1,276 | ||||||||||||||
Other consumer loans and leases |
529 | 743 | $ | 1,009 | 1,213 | 1,219 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal - consumer |
36,140 | 34,904 | $ | 35,143 | 35,108 | 35,575 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total average loans and leases |
$ | 80,214 | $ | 79,232 | $ | 83,391 | $ | 85,836 | $ | 78,348 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Asset Quality ($ in millions) |
||||||||||||||||||||
Nonaccrual loans and leases |
$ | 1,058 | $ | 1,333 | $ | 2,642 | $ | 1,696 | $ | 813 | ||||||||||
Nonaccrual loans held for sale |
131 | 247 | 220 | 473 | | |||||||||||||||
Restructured loans - commercial (non accrual) held for sale |
7 | 47 | 4 | | | |||||||||||||||
Restructured loans and leases (non accrual) portfolio |
380 | 347 | 305 | 80 | 80 | |||||||||||||||
Other assets, including other real estate owned |
378 | 494 | 297 | 230 | 171 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonperforming assets |
$ | 1,954 | $ | 2,468 | $ | 3,468 | $ | 2,479 | $ | 1,064 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ninety days past due loans and leases |
$ | 200 | $ | 317 | $ | 567 | $ | 662 | $ | 491 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(non-accrual plus renegotiated) | ||||||||||||||||||||
Nonperforming Loans ($ in millions) |
||||||||||||||||||||
Commercial mortgage |
$ | 421 | $ | 581 | 1,035 | 715 | 243 | |||||||||||||
Commercial construction loans |
139 | 258 | 741 | 578 | 249 | |||||||||||||||
Commercial and industrial loans and leases |
499 | 753 | 840 | 586 | 180 | |||||||||||||||
Consumer mortgage and construction |
275 | 268 | 412 | 279 | 121 | |||||||||||||||
Other consumer loans and leases |
104 | 114 | 144 | 91 | 100 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonperforming loans |
$ | 1,438 | $ | 1,974 | $ | 3,172 | $ | 2,249 | $ | 893 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Credit Charge-Offs ($ in millions) |
||||||||||||||||||||
Gross charge-offs |
$ | (1,314 | ) | $ | (2,484 | ) | $ | (2,719 | ) | $ | (2,792 | ) | $ | (544 | ) | |||||
Recoveries |
142 | 156 | 138 | 82 | 81 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net losses charged off |
$ | (1,172 | ) | $ | (2,328 | ) | $ | (2,581 | ) | $ | (2,710 | ) | $ | (463 | ) | |||||
|
|
|
|
|
|
|
|
|
|
Page 5
IKX6^&W_`"4+
MPU_V$8/_`$,5]TGJ:^.XF_BP]/U._"?"Q*\)_:S_`.1>\.?]? 1]#TK.U+P_
@`_B-37Q%+WE!)ZQ>V]D[W^?38<8RTOYF
M1\';VZU+X9Z!>:A<2W-U+"QDFE8L[GS&&23UX%=C63X3T*V\,^'+'1K*266V
MM$*(\Q!<@L6YP`.]:U<6(G&=6*+:+0-(T.;PD9(?*N?-"OY!"[BJAAT&<<=A7F'P]TSP?J%Q\26\4I8/
M
H()
M4X[')XDTK0H_&/B+1]$\/>&[4:3IZ?:+O6;EVCCC9!(/(ASP1NZYZGWY]
MRO-&TV]U.RU&[LH)KZRS]FG=&`,_8M7_[])_\`%U\T4C?=:G_86$[/[QW9
M^@FEW27VEV=W"&$=Q"DRANH#*",^_-6:R?"'_(I:'_UX0?\`HM:UJ^#J+EDT
MCUUL<5\:O^24^)O^O4?^AK7Q0*^U_C5_R2GQ-_UZC_T-:^*!7V/#7^[S_P`7
MZ(X<7\2"BBBOHSD"BBB@`-?1/[)/^I\4?[UM_*2OG8U]$_LD_P"I\4?[UM_*
M2O)SS_<9_+\T;X;^(CZ#HHHK\^/3/B;XR_\`)5/$_P#U^'^0KC*[/XR_\E4\
M3_\`7X?Y"N,K]/PG^[T_\*_(\BI\3"BBBN@@****`%'WA]17Z$6__'M#_P!<
MU_D*_/>'U%?H1;_P#'M#_US7^0KY3B?_EU\_T.W!]1]>8?M)?\DHO?^OJW
M_P#0Z]/KS#]I+_DE%[_U]6__`*'7@9=_O=+_`!+\SJJ?`SY"HHHK]*/("BBB
M@`HHHH`]]_9*_P"0IXF_ZX0?^AO7T?7SA^R5_P`A3Q-_UP@_]#>OH^OS_/?]
M^G\OR1Z>'_AH*^,/CM_R5KQ'_P!=4_\`125]GU\8?';_`)*UXC_ZZI_Z*2NO
MAK_>9?X?U1&+^!'!4445]J>>%%%%`!6GX8_Y&?1_^OV'_P!&+696GX8_Y&?1
M_P#K]A_]&+45/@?H..Z/OR7_`%C_`%-,I\O^L?ZFF5^5H]D*TM-_U+?[U9M:
M6F_ZEO\`>H`BU+[Z?0U2J[J7WT^AJE0`5YGX/N?$-O\`$_Q)::]JG]H21Z7#
M=1V\&8[:)F