Subsequent Event

3 Months Ended

Mar. 31, 2019

Subsequent Event

Subsequent Event

27. Subsequent Events

On April 25, 2019, the Bancorp entered into an accelerated share repurchase transaction with a counterparty pursuant to which the Bancorp paid $200 million on April 29, 2019 to repurchase shares of its outstanding common stock. The Bancorp is repurchasing the shares of its common stock as part of its Board-approved 100 million share repurchase program previously announced on February 27, 2018. The Bancorp expects the settlement of the transaction to occur on or before June 28, 2019.

In a securitization transaction that occurred in May of 2019, the Bancorp transferred $1.4 billion in aggregate automobile loans to a bankruptcy remote trust which was deemed to be a VIE. The Bancorp retained residual interests in the VIE and retained servicing rights for the underlying loans. As a result, the Bancorp concluded that it is the primary beneficiary and, therefore, will consolidate the VIE in the second quarter of 2019 Form 10-Q. The third-party holders of the asset-backed notes do not have recourse to the general assets of the Bancorp.

On May 3, 2019 MB Financial Bank, N.A., merged with and into Fifth Third Bank, with Fifth Third Bank as the surviving entity and included all systems and client conversion in connection with the bank merger. Fifth Third Bank is a subsidiary of Fifth Third Bancorp.