Board Increases Share Repurchase Authorization to 100 million shares
Fifth Third Bancorp today declared cash dividends on its common shares
and Series I preferred shares.
Fifth Third Bancorp (Nasdaq: FITB) today declared a cash dividend on its
common shares of $0.12 for the first quarter of 2014. The dividend is
payable on Thursday, April 17, 2014 to shareholders of record as of
Monday, March 31, 2014. This dividend is consistent with Fifth Third’s
proposed potential dividends as submitted to the Federal Reserve in its
2013 Comprehensive Capital Analysis & Review (“CCAR”) plan.
Fifth Third also declared a cash dividend on its 6.625%
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series
I (Nasdaq: FITBI), at the rate of $515.28 per share, which equates to
approximately $0.515 for each depositary share. Each depositary share
represents a 1/1000th ownership interest in a share of Series I
Preferred Stock. The Series I dividend is payable on Monday, March 31,
2014 to shareholders of record as of Friday, March 28, 2014 for the
dividend period commencing on December 9, 2013 and ending on March 31,
2014.
Fifth Third also announced that its Board of Directors approved a new
share repurchase authorization of up to 100 million shares, which
replaces the previous authorization from 2013 under which approximately
38 million shares remain.
Future capital distributions for the period beginning April 1, 2014
through March 31, 2015 and subsequent periods would be subject to
non-objection by the Federal Reserve under its CCAR process for large
U.S. banks. As previously communicated by the Federal Reserve, it plans
to issue objections or non-objections to firms’ capital plans on March
26, 2014. Any potential future capital distributions for periods
following March 31, 2014 would be considered by the Board at meetings in
subsequent periods.
Any capital distributions, including those contemplated in the above
announced actions, are subject to evaluation and approval by the Board
of Directors at any given time, Fifth Third’s performance, the state of
the economic environment, market conditions, regulatory factors, and
other risks and uncertainties. The new repurchase authorization does not
have an expiration date, does not include specific price targets, may be
executed through open market purchases or one or more private negotiated
transactions, including Rule 10b5-1 programs, and may be suspended at
any time.
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of December 31, 2013, the Company
had $130 billion in assets and operated 17 affiliates with 1,320
full-service Banking Centers, including 104 Bank Mart® locations, most
open seven days a week, inside select grocery stores and 2,586 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 December 31, 2013, had $302 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."
Forward-Looking Statements
This press 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. 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 Third’s ability to maintain required
capital levels and adequate sources of funding and liquidity; (7)
maintaining capital requirements may limit Fifth Third’s 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 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 Third’s 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 from Fifth Third’s investment in or the
results of operations of Vantiv, LLC; (21) loss of income from any sale
or potential sale of businesses that could have an adverse effect on
Fifth Third’s earnings and future growth; (22) ability to secure
confidential information and deliver products and services 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.
Fifth Third Bancorp
Jim Eglseder (Investors), 513-534-8424
Larry Magnesen (Media), 513-534-8055