Fifth Third Bancorp (Nasdaq: FITB) today announced plans to pursue
changes to its branch network as it works to improve efficiency,
competitiveness and the quality of its customers’ experience.
“Consumer demographics and our customers’ preferred channels of banking
are undergoing significant changes,” said Kevin T. Kabat, vice chairman
and chief executive officer of Fifth Third Bancorp. “Technology
continues to impact our service delivery and revenue generation tactics
and strategies. We have been very successful in growing our market share
in our footprint as the most recent FDIC data clearly shows, and we will
continue to maintain the same focus going forward by optimizing the size
and density of our branch network.”
The Company is pursuing this plan as part of its regular review of
customer preferences and usage patterns across its network and all
distribution channels. Fifth Third currently expects to consolidate or
sell approximately 100 branches and approximately 30 other properties
purchased earlier for future branch expansion.
“This plan reflects the continued progression of our work on providing
an integrated customer experience,” Kabat said. “Meeting the evolving
preferences of how our customers interact with us is our top priority.
Over the past several years, we have made significant improvements to
our mobile banking options and our sales and staffing models, and plan
to tailor our branch network in concert with these changes. We continue
to believe an optimized branch network plays a significant role in
meeting the financial needs of our customers, and in delivering an
integrated customer experience.”
In connection with these plans, Fifth Third Bancorp expects to incur
approximately $75-85 million in non-cash impairment charges to be
recognized in the second quarter of 2015. Fifth Third also expects to
recognize approximately $6 - 10 million in other costs, primarily
related to real estate contract terminations. The Bancorp believes that
these actions will result in annualized reduction of approximately $60
million in ongoing operating expenses and are expected to be fully
executed by mid-2016.
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of March 31, 2015, the Company had
$140 billion in assets and operated 15 affiliates with 1,303
full-service Banking Centers, including 101 Bank Mart® locations, most
open seven days a week, inside select grocery stores and 2,637 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 22.8%
interest in Vantiv Holding, LLC. Fifth Third is among the largest money
managers in the Midwest and, as of March 31, 2015, had $308 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 report 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,” “anticipates,” “potential,” “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 as updated from
time to time by our Quarterly Reports on Form 10-Q. 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. The estimated amounts of cash and non-cash
restructuring and impairment charges described above could change as a
result of changes in estimates, and it is possible that the
implementation of the Branch Consolidation and Sales Plan, or changes to
that plan, could result in charges not currently contemplated.
Additional 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 for properties affected by
the Branch Consolidation and Sales Plan, are less favorable than
expected; (2) difficulties in separating the operations of any branches
or other assets divested in the Branch Consolidation and Sales Plan; (3)
inability to achieve expected benefits from the Branch Consolidation and
Sales Plan within desired timeframes, if at all; (4) loss of income from
branches or other assets divested in the Branch Consolidation and Sales
Plan; (5) effects of critical accounting policies and judgments and the
use of estimates for results of current or future periods; (6) changes
in accounting policies or procedures as may be required by the Financial
Accounting Standards Board or other regulatory agencies; (7) problems
encountered by larger or similar financial institutions may adversely
affect the banking industry and/or Fifth Third; (8) competitive
pressures among depository institutions increase significantly; and (9)
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
or
Larry Magnesen (Media), 513-534-8055