Fifth Third Bancorp today announced that it has reached an agreement in
principle with the Staff of the Securities and Exchange Commission
(“SEC”) to settle a previously disclosed investigation by the SEC into
Fifth Third’s accounting for certain commercial loans that Fifth Third
sold or reclassified as held-for-sale in the fourth quarter of 2008. At
dispute in this matter is whether certain of those loans should have
been moved to held-for-sale in the third quarter of that year.
To put into effect the agreement in principle, Fifth Third, without
admitting or denying any factual allegations, would consent to the SEC's
issuance of an administrative order finding that the Company did not
properly account for a portion of its commercial real estate loan
portfolio in its form 10-Q for the third quarter of 2008 in violation of
Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933 and
Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange
Act of 1934. The proposed settlement would also order the Company to
cease and desist from committing or causing any such violations in the
future and to pay a civil money penalty. Fifth Third believes it is
appropriately reserved with respect to the proposed settlement. Daniel
T. Poston, the Company's interim chief financial officer during the
relevant time, is in separate settlement discussions with the SEC staff
concerning a settlement pursuant to which Mr. Poston, without admitting
or denying any factual allegations, would consent to similar findings
and charges against him, a cease and desist order, a separate civil
money penalty, and a one-year ban from practicing before the SEC. The
proposed settlement is subject to approval by the Commissioners of the
SEC, and there can be no assurance that the Commissioners will approve a
settlement on the terms described above.
In connection with these proposed settlements, Fifth Third is
implementing certain management changes. Mr. Poston has been named the
Company's chief strategy and administrative officer. In his new
position, Mr. Poston will oversee the activities of Strategic Planning,
Distribution Strategy, Capital Planning, Mergers and Acquisitions,
Corporate Facilities, and Strategic Sourcing, and will report to Kevin
T. Kabat, vice chairman and chief executive officer of Fifth Third
Bancorp and Fifth Third Bank.
Tayfun Tuzun, previously Fifth Third's treasurer, has been named
executive vice president and chief financial officer, effective October
31, 2013. He will also report directly to Mr. Kabat. Mr. Tuzun joined
Fifth Third Bancorp in 2007 and was named treasurer in 2011. He holds
both master's and doctorate degrees in economics from The Ohio State
University, and a bachelor's degree in economics from Bosphorus
University in Turkey. He has held senior positions in finance and
treasury with Provident Bank, and he was also previously a faculty
member at the University of New South Wales.
Mary Tuuk, Board secretary and executive vice president of Corporate
Services, will add responsibility for Compliance. Two functions now
reporting to Mr. Poston, Facilities and Strategic Sourcing, previously
reported to Ms. Tuuk.
Jamie Leonard has been named treasurer, reporting to Mr. Tuzun. He
joined Fifth Third Bank in 1999 and has held a number of senior roles in
Finance. He most recently served as senior vice president and director
of Business Planning and Analysis. Mr. Leonard received his bachelor’s
degree from Miami University and is a certified public accountant.
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. The Company has $126 billion in
assets and operates 18 affiliates with 1,321 full-service Banking
Centers, including 102 Bank Mart® locations open seven days a week
inside select grocery stores and 2,398 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 25% interest in Vantiv
Holding, LLC. Fifth Third is among the largest money managers in the
Midwest and, as of September 30, 2013, had $318 billion in assets under
care, of which it managed $27 billion for individuals, corporations and
not-for-profit organizations. Investor information and press releases
can be viewed at www.53.com.
Fifth Third’s common stock is traded on the NASDAQ® Global Select Market
under the symbol “FITB.” Fifth Third Bank was established in 1858.
Member FDIC.
Fifth Third Bancorp
Investors:
Jim Eglseder, 513-534-8424
or
Jeff Richardson, 513-534-0983
or
Media:
Larry Magnesen, 513-534-8055