2015 Earnings Per Diluted Share of $2.01
- 4Q15 net income available to common shareholders of $634 million, or $0.79 per diluted common share
- Includes a $331 million pre-tax (~$215 million after-tax) gain on the sale of Vantiv shares, an $89 million pre-tax (~$58 million after-tax) gain on Vantiv warrant actions taken during the quarter, a $49 million pre-tax (~$32 million after-tax) payment received from Vantiv to terminate a portion of its tax receivable agreement, a $21 million pre-tax (~$13 million after-tax) positive valuation adjustment on the remaining warrant Fifth Third holds in Vantiv, a $10 million pre-tax (~$7 million after-tax) charge related to the valuation of the Visa total return swap, and a $10 million pre-tax (~$7 million after-tax) contribution to Fifth Third Foundation, resulting in a net $0.38 impact on earnings per share
- 4Q15 return on average assets (ROA) of 1.83%; return on average common equity of 17.2%; return on average tangible common equity** of 20.6%
- Pre-provision net revenue (PPNR)** of $1.0 billion in 4Q15
- Net interest income (FTE) of $904 million was down $2 million sequentially and up $16 million from 4Q14; net interest margin of 2.85%, down 4 bps sequentially
- Average portfolio loans of $93.6 billion, up $221 million sequentially and up $2.6 billion from 4Q14; the increase from the prior year was primarily driven by increases in C&I and commercial construction loans
- Noninterest income of $1.1 billion compared with $713 million in the prior quarter; primarily driven by the Vantiv-related items mentioned above
- Noninterest expense of $963 million, up 2% from 3Q15, primarily driven by a contribution to Fifth Third Foundation
- Credit trends
- 4Q15 net charge-offs of $80 million (0.34% of loans and leases) decreased from 3Q15 NCOs of $188 million (0.80% of loans and leases) primarily due to the 3Q15 $102 million net charge-off related to the restructuring of a student loan backed commercial credit
- Portfolio NPA ratio of 0.70% up 5 bps from 3Q15, NPL ratio of 0.55% up 6 bps from 3Q15; total nonperforming assets (NPAs) of $659 million, including loans held-for-sale (HFS), increased $51 million sequentially
- 4Q15 provision expense of $91 million; $156 million in 3Q15 and $99 million in 4Q14; decrease from the prior quarter was primarily impacted by the restructuring of a student loan backed commercial credit in 3Q15
- Strong capital ratios*
- Common equity Tier 1 (CET1) ratio 9.83%; fully phased-in CET1 ratio of 9.73%
- Tier 1 risk-based capital ratio 10.93%, Total risk-based capital ratio 14.13%, Leverage ratio 9.54%
- Tangible common equity ratio** of 8.71%; 8.59% excluding securities portfolio unrealized gains/losses
- 10 million reduction in common shares outstanding during the quarter
- Book value per share of $18.48; up 1% from 3Q15 and up 7% from 4Q14; tangible book value per share** of $15.39
* Capital ratios estimated; presented under current U.S. capital regulations.
** Non-GAAP measure; see Reg. G reconciliation on page 34 in Exhibit 99.1 of 8-k filing dated 1/21/16.
Fifth Third Bancorp (Nasdaq: FITB) today reported full year 2015 net
income of $1.7 billion, up 16 percent from net income of $1.5 billion in
2014. After preferred dividends, 2015 net income available to common
shareholders was $1.6 billion, or $2.01 per diluted share, up 16 percent
compared with 2014 net income available to common shareholders of $1.4
billion, or $1.66 per diluted share.
Fourth quarter 2015 net income was $657 million, an increase of 72
percent from net income of $381 million in the third quarter of 2015 and
an increase of 71 percent from net income of $385 million in the fourth
quarter of 2014. After preferred dividends, net income available to
common shareholders was $634 million, or $0.79 per diluted share, in the
fourth quarter 2015, compared with $366 million, or $0.45 per diluted
share, in the third quarter 2015, and $362 million, or $0.43 per diluted
share, in the fourth quarter of 2014.
Fourth quarter 2015 included:
Income
-
$331 million gain on the sale of Vantiv shares
-
$89 million gain on Vantiv warrant actions taken during the quarter
-
$49 million payment received from Vantiv to terminate a portion of its
tax receivable agreement
-
$21 million positive valuation adjustment on the remaining Vantiv
warrant
-
($10 million) charge related to the valuation of the total return swap
entered into as part of the 2009 sale of Visa, Inc. Class B shares
Expenses
-
($2 million) in severance expense
-
($10 million) contribution to Fifth Third Foundation
Results also included a $31 million annual payment recognized from
Vantiv pursuant to the tax receivable agreement recorded in other
noninterest income.
Third quarter 2015 included:
Income
-
$130 million positive valuation adjustment on the Vantiv warrant
-
($8 million) charge related to the valuation of the Visa total return
swap
Expenses
-
($9 million) charge associated with executive retirement and severance
costs
Results also included $35 million of provision expense related to the
restructuring of a student loan backed commercial credit originally
extended in 2007.
Fourth quarter 2014 included:
Income
-
$56 million positive valuation adjustment on the Vantiv warrant
-
($19 million) charge related to the valuation of the Visa total return
swap
Expenses
-
($6 million) in severance expense
Results also included a $23 million annual payment recognized from
Vantiv pursuant to the tax receivable agreement recorded in other
noninterest income and $23 million of provision expense related to the
transfer of residential mortgage loans classified as troubled debt
restructurings to held-for-sale.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Earnings ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Bancorp
|
$
|
657
|
|
$
|
381
|
|
$
|
315
|
|
$
|
361
|
|
$
|
385
|
|
72
|
%
|
|
71
|
%
|
|
Net income available to common shareholders
|
$
|
634
|
|
$
|
366
|
|
$
|
292
|
|
$
|
346
|
|
$
|
362
|
|
73
|
%
|
|
75
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic
|
$
|
0.80
|
|
$
|
0.46
|
|
$
|
0.36
|
|
$
|
0.42
|
|
$
|
0.44
|
|
74
|
%
|
|
82
|
%
|
|
Earnings per share, diluted
|
|
0.79
|
|
|
0.45
|
|
|
0.36
|
|
|
0.42
|
|
|
0.43
|
|
76
|
%
|
|
84
|
%
|
|
Cash dividends per common share
|
|
0.13
|
|
|
0.13
|
|
|
0.13
|
|
|
0.13
|
|
|
0.13
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
1.83
|
%
|
|
1.07
|
%
|
|
0.90
|
%
|
|
1.06
|
%
|
|
1.13
|
%
|
71
|
%
|
|
62
|
%
|
|
Return on average common equity
|
|
17.2
|
|
|
10.0
|
|
|
8.1
|
|
|
9.7
|
|
|
10.0
|
|
72
|
%
|
|
72
|
%
|
|
Return on average tangible common equity(b)
|
|
20.6
|
|
|
12.0
|
|
|
9.7
|
|
|
11.7
|
|
|
12.1
|
|
72
|
%
|
|
70
|
%
|
|
CET1 capital(c)
|
|
9.83
|
|
|
9.40
|
|
|
9.42
|
|
|
9.52
|
|
|
N/A
|
|
5
|
%
|
|
N/A
|
|
|
Tier I risk-based capital(c)
|
|
10.93
|
|
|
10.49
|
|
|
10.51
|
|
|
10.62
|
|
|
10.83
|
|
4
|
%
|
|
N/A
|
|
|
Tier I common equity(b)
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
9.65
|
|
N/A
|
|
|
N/A
|
|
|
CET1 capital (fully-phased in)(b)(c)
|
|
9.73
|
|
|
9.30
|
|
|
9.31
|
|
|
9.41
|
|
|
N/A
|
|
5
|
%
|
|
N/A
|
|
|
Net interest margin(a)
|
|
2.85
|
|
|
2.89
|
|
|
2.90
|
|
|
2.86
|
|
|
2.96
|
|
(1
|
%)
|
|
(4
|
%)
|
|
Efficiency(a)
|
|
48.0
|
|
|
58.2
|
|
|
65.4
|
|
|
62.3
|
|
|
59.6
|
|
(18
|
%)
|
|
(19
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding (in thousands)
|
|
785,080
|
|
|
795,439
|
|
|
810,054
|
|
|
815,190
|
|
|
824,047
|
|
(1
|
%)
|
|
(5
|
%)
|
|
Average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
784,855
|
|
|
795,793
|
|
|
803,965
|
|
|
810,210
|
|
|
819,057
|
|
(1
|
%)
|
|
(4
|
%)
|
|
Diluted
|
|
794,481
|
|
|
805,023
|
|
|
812,843
|
|
|
818,672
|
|
|
827,831
|
|
(1
|
%)
|
|
(4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Presented on a fully taxable equivalent basis.
|
|
(b) These ratios have been included herein to facilitate a
greater understanding of the Bancorp's capital structure and
financial condition. See the Regulation G Non-GAAP Reconciliation
table for a reconciliation of these ratios to U.S. GAAP.
|
|
(c) Under the banking agencies' Basel III Final Rule, assets and
credit equivalent amounts of off-balance sheet exposures are
calculated according to the standardized approach for risk-weighted
assets. The resulting values are added together resulting in the
Bancorp's total risk-weighted assets used in the calculation of the
tier I risk-based capital and common equity tier 1 ratios beginning
January 1, 2015. Current period regulatory capital ratios are
estimated.
|
|
NA: Not applicable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
“Core fourth quarter results were in line with our expectations,” said
Greg D. Carmichael, President and CEO of Fifth Third Bancorp. “Our fee
businesses produced stable results despite lower levels of capital
markets activity, and our expenses were up less than one percent
relative to the third quarter, excluding the contribution we made to our
Foundation in support of our communities. We were also pleased with the
low charge-off levels at 34 basis points. We view the Fed’s December
rate move as a positive first step towards a normalized environment but
there is uncertainty around the extent and timing of the future rate
decisions.
“Additionally during the quarter, we have taken important steps towards
reducing our direct ownership stake in Vantiv in the best interest of
our shareholders while reducing a significant amount of volatility
associated with our warrant position. Vantiv continues to perform well
and we were happy to participate in their success. In this quarter we
executed on all three pieces of our financial interests, namely the TRA,
warrants, and direct ownership in a well-planned manner to maximize the
returns to our shareholders. After these transactions, we continue to
hold a significant ownership stake in the company which we believe will
result in healthy returns for our shareholders.
“We view 2016 as an important transition year tactically and
strategically to position our company to achieve operating leverage in a
sustainable manner regardless of the rate environment going forward. In
2015 we took significant steps in that direction and we will continue
our efforts in 2016. We are working simultaneously on long-term revenue
growth as well as expense efficiencies to achieve our goal. We have
taken actions to reduce our run-rate expenses and those savings will
partially fund the strategic investments and expenses related to our
risk and compliance infrastructure which we expect will peak in 2016.
Our strategic decisions will continue to result in the re-allocation of
our resources to improve profitability with reduced volatility. We are
committed to achieving the industry leading level of operational results
that our constituents have historically seen from us when it comes to
service, efficiency, growth, and returns.”
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
|
2015
|
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Condensed Statements of Income ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (taxable equivalent)
|
|
$
|
904
|
|
$
|
906
|
|
$
|
892
|
|
|
$
|
852
|
|
$
|
888
|
|
-
|
|
|
2
|
%
|
|
Provision for loan and lease losses
|
|
|
91
|
|
|
156
|
|
|
79
|
|
|
|
69
|
|
|
99
|
|
(42
|
%)
|
|
(8
|
%)
|
|
Total noninterest income
|
|
|
1,104
|
|
|
713
|
|
|
556
|
|
|
|
630
|
|
|
653
|
|
55
|
%
|
|
69
|
%
|
|
Total noninterest expense
|
|
|
963
|
|
|
943
|
|
|
947
|
|
|
|
923
|
|
|
918
|
|
2
|
%
|
|
5
|
%
|
|
Income before income taxes (taxable equivalent)
|
|
$
|
954
|
|
$
|
520
|
|
$
|
422
|
|
|
$
|
490
|
|
$
|
524
|
|
83
|
%
|
|
82
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent adjustment
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
|
5
|
|
|
5
|
|
-
|
|
|
-
|
|
|
Applicable income taxes
|
|
|
292
|
|
|
134
|
|
|
108
|
|
|
|
124
|
|
|
134
|
|
NM
|
|
|
NM
|
|
|
Net income
|
|
$
|
657
|
|
$
|
381
|
|
$
|
309
|
|
|
$
|
361
|
|
$
|
385
|
|
72
|
%
|
|
71
|
%
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
-
|
|
|
-
|
|
|
(6
|
)
|
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
Net income attributable to Bancorp
|
|
$
|
657
|
|
$
|
381
|
|
$
|
315
|
|
|
$
|
361
|
|
$
|
385
|
|
72
|
%
|
|
71
|
%
|
|
Dividends on preferred stock
|
|
|
23
|
|
|
15
|
|
|
23
|
|
|
|
15
|
|
|
23
|
|
53
|
%
|
|
-
|
|
|
Net income available to common shareholders
|
|
$
|
634
|
|
$
|
366
|
|
$
|
292
|
|
|
$
|
346
|
|
$
|
362
|
|
73
|
%
|
|
75
|
%
|
|
Earnings per share, diluted
|
|
$
|
0.79
|
|
$
|
0.45
|
|
$
|
0.36
|
|
|
$
|
0.42
|
|
$
|
0.43
|
|
76
|
%
|
|
84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Interest Income ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income (taxable equivalent)
|
|
$
|
1,035
|
|
|
|
$
|
1,031
|
|
|
|
$
|
1,008
|
|
|
|
$
|
975
|
|
|
|
$
|
1,016
|
|
|
|
-
|
|
|
2
|
%
|
|
Total interest expense
|
|
|
131
|
|
|
|
|
125
|
|
|
|
|
116
|
|
|
|
|
123
|
|
|
|
|
128
|
|
|
|
5
|
%
|
|
2
|
%
|
|
Net interest income (taxable equivalent)
|
|
$
|
904
|
|
|
|
$
|
906
|
|
|
|
$
|
892
|
|
|
|
$
|
852
|
|
|
|
$
|
888
|
|
|
|
-
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on interest-earning assets (taxable equivalent)
|
|
|
3.26
|
%
|
|
|
|
3.29
|
%
|
|
|
|
3.28
|
%
|
|
|
|
3.28
|
%
|
|
|
|
3.38
|
%
|
|
|
(1
|
%)
|
|
(4
|
%)
|
|
Rate paid on interest-bearing liabilities
|
|
|
0.61
|
%
|
|
|
|
0.58
|
%
|
|
|
|
0.56
|
%
|
|
|
|
0.60
|
%
|
|
|
|
0.61
|
%
|
|
|
5
|
%
|
|
-
|
|
|
Net interest rate spread (taxable equivalent)
|
|
|
2.65
|
%
|
|
|
|
2.71
|
%
|
|
|
|
2.72
|
%
|
|
|
|
2.68
|
%
|
|
|
|
2.77
|
%
|
|
|
(2
|
%)
|
|
(4
|
%)
|
|
Net interest margin (taxable equivalent)
|
|
|
2.85
|
%
|
|
|
|
2.89
|
%
|
|
|
|
2.90
|
%
|
|
|
|
2.86
|
%
|
|
|
|
2.96
|
%
|
|
|
(1
|
%)
|
|
(4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including held for sale
|
|
$
|
94,587
|
|
|
|
$
|
94,329
|
|
|
|
$
|
92,739
|
|
|
|
$
|
91,659
|
|
|
|
$
|
91,581
|
|
|
|
-
|
|
|
3
|
%
|
|
Total securities and other short-term investments
|
|
|
31,256
|
|
|
|
|
30,102
|
|
|
|
|
30,563
|
|
|
|
|
29,038
|
|
|
|
|
27,604
|
|
|
|
4
|
%
|
|
13
|
%
|
|
Total interest-earning assets
|
|
|
125,843
|
|
|
|
|
124,431
|
|
|
|
|
123,302
|
|
|
|
|
120,697
|
|
|
|
|
119,185
|
|
|
|
1
|
%
|
|
6
|
%
|
|
Total interest-bearing liabilities
|
|
|
85,415
|
|
|
|
|
85,204
|
|
|
|
|
83,512
|
|
|
|
|
83,339
|
|
|
|
|
82,544
|
|
|
|
-
|
|
|
3
|
%
|
|
Bancorp shareholders' equity
|
|
|
15,982
|
|
|
|
|
15,815
|
|
|
|
|
15,841
|
|
|
|
|
15,820
|
|
|
|
|
15,644
|
|
|
|
1
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income decreased $2 million to $904 million on a fully
taxable equivalent basis from the third quarter, primarily driven by the
full quarter impact of $2.4 billion of wholesale debt issuances in the
third quarter, the $750 million auto securitization completed in
November, and commercial loan yield compression, partially offset by
residential mortgage loan growth.
The net interest margin was 2.85 percent, a decrease of 4 bps from the
previous quarter, primarily driven by the impact of debt issuances and
the auto securitization above, slower prepayments reducing net discount
accretion on the investment portfolio, and an increased short-term cash
position during the quarter.
Compared with the fourth quarter of 2014, net interest income increased
$16 million and the net interest margin decreased 11 bps. The increase
in net interest income was driven by the impact of higher investment
securities balances, partially offset by a $22 million decline due to
the changes to the Bancorp’s deposit advance product that were effective
January 1, 2015. The decline in the net interest margin from the prior
year was primarily driven by a 7 basis point impact due to the changes
to the deposit advance product and loan repricing.
Securities
Average securities and other short-term investments were $31.3 billion
in the fourth quarter of 2015 compared with $30.1 billion in the
previous quarter and $27.6 billion in the fourth quarter of 2014. Other
short-term investments average balances of $2.3 billion increased $454
million sequentially reflecting higher cash balances held at the Federal
Reserve.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Average Portfolio Loans and Leases ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
$
|
43,154
|
|
|
$
|
43,149
|
|
|
$
|
42,550
|
|
|
$
|
41,426
|
|
|
$
|
41,277
|
|
|
-
|
|
|
5
|
%
|
|
Commercial mortgage loans
|
|
|
7,032
|
|
|
|
7,023
|
|
|
|
7,148
|
|
|
|
7,241
|
|
|
|
7,480
|
|
|
-
|
|
|
(6
|
%)
|
|
Commercial construction loans
|
|
|
3,141
|
|
|
|
2,965
|
|
|
|
2,549
|
|
|
|
2,197
|
|
|
|
1,909
|
|
|
6
|
%
|
|
65
|
%
|
|
Commercial leases
|
|
|
3,839
|
|
|
|
3,846
|
|
|
|
3,776
|
|
|
|
3,715
|
|
|
|
3,600
|
|
|
-
|
|
|
7
|
%
|
|
Subtotal - commercial loans and leases
|
|
$
|
57,166
|
|
|
$
|
56,983
|
|
|
$
|
56,023
|
|
|
$
|
54,579
|
|
|
$
|
54,266
|
|
|
-
|
|
|
5
|
%
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
|
$
|
13,504
|
|
|
$
|
13,144
|
|
|
$
|
12,831
|
|
|
$
|
12,433
|
|
|
$
|
13,046
|
|
|
3
|
%
|
|
4
|
%
|
|
Home equity
|
|
|
8,360
|
|
|
|
8,479
|
|
|
|
8,654
|
|
|
|
8,802
|
|
|
|
8,937
|
|
|
(1
|
%)
|
|
(6
|
%)
|
|
Automobile loans
|
|
|
11,670
|
|
|
|
11,877
|
|
|
|
11,902
|
|
|
|
11,933
|
|
|
|
12,073
|
|
|
(2
|
%)
|
|
(3
|
%)
|
|
Credit card
|
|
|
2,218
|
|
|
|
2,277
|
|
|
|
2,296
|
|
|
|
2,321
|
|
|
|
2,324
|
|
|
(3
|
%)
|
|
(5
|
%)
|
|
Other consumer loans and leases
|
|
|
676
|
|
|
|
613
|
|
|
|
467
|
|
|
|
440
|
|
|
|
395
|
|
|
10
|
%
|
|
71
|
%
|
|
Subtotal - consumer loans and leases
|
|
$
|
36,428
|
|
|
$
|
36,390
|
|
|
$
|
36,150
|
|
|
$
|
35,929
|
|
|
$
|
36,775
|
|
|
-
|
|
|
(1
|
%)
|
|
Total average loans and leases (excluding held for sale)
|
|
$
|
93,594
|
|
|
$
|
93,373
|
|
|
$
|
92,173
|
|
|
$
|
90,508
|
|
|
$
|
91,041
|
|
|
-
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans held for sale
|
|
$
|
993
|
|
|
$
|
956
|
|
|
$
|
566
|
|
|
$
|
1,151
|
|
|
$
|
540
|
|
|
4
|
%
|
|
84
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loan and lease balances (excluding loans held-for-sale)
increased $221 million sequentially and increased $2.6 billion, or 3
percent, from the fourth quarter of 2014. The year-over-year increase in
average loans and leases was driven by increased commercial and
industrial (C&I) and commercial construction balances. Period end loans
and leases (excluding loans held-for-sale) of $92.6 billion decreased
$992 million, or 1 percent, sequentially and increased $2.5 billion, or
3 percent, from a year ago.
Average commercial portfolio loan and lease balances increased $183
million sequentially and increased $2.9 billion, or 5 percent, from the
fourth quarter of 2014. Average C&I loans were flat from the prior
quarter and increased $1.9 billion, or 5 percent, from the fourth
quarter of 2014. Within commercial real estate, average commercial
mortgage balances were flat and average commercial construction balances
increased $176 million. Commercial line usage, on an end of period
basis, decreased 77 bps from the third quarter of 2015 and 49 bps from
the fourth quarter of 2014.
Average consumer portfolio loan and lease balances increased $38 million
sequentially and decreased $347 million from the fourth quarter of 2014.
Average residential mortgage loans increased 3 percent sequentially and
4 percent from a year ago. Average auto loans decreased 2 sequentially
and 3 percent from the previous year. Average home equity loans declined
1 percent sequentially and 6 percent from the fourth quarter of 2014.
Average credit card loans decreased 3 percent sequentially and 5 percent
from the fourth quarter of 2014.
Period end loans held-for-sale balances of $903 million decreased $91
million sequentially. Period end loans held-for-sale balances decreased
$358 million compared with the prior year due to the impact of the
transfer of certain residential mortgage loans classified as troubled
debt restructurings to held-for-sale in the fourth quarter of 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Average Deposits ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
$
|
36,254
|
|
|
$
|
35,231
|
|
|
$
|
35,384
|
|
|
$
|
33,760
|
|
|
$
|
33,301
|
|
|
3
|
%
|
|
9
|
%
|
|
Interest checking
|
|
|
25,296
|
|
|
|
25,590
|
|
|
|
26,894
|
|
|
|
26,885
|
|
|
|
25,478
|
|
|
(1
|
%)
|
|
(1
|
%)
|
|
Savings
|
|
|
14,615
|
|
|
|
14,868
|
|
|
|
15,156
|
|
|
|
15,174
|
|
|
|
15,173
|
|
|
(2
|
%)
|
|
(4
|
%)
|
|
Money market
|
|
|
18,775
|
|
|
|
18,253
|
|
|
|
18,071
|
|
|
|
17,492
|
|
|
|
17,023
|
|
|
3
|
%
|
|
10
|
%
|
|
Foreign office(a)
|
|
|
736
|
|
|
|
718
|
|
|
|
955
|
|
|
|
861
|
|
|
|
1,439
|
|
|
3
|
%
|
|
(49
|
%)
|
|
Subtotal - Transaction deposits
|
|
$
|
95,676
|
|
|
$
|
94,660
|
|
|
$
|
96,460
|
|
|
$
|
94,172
|
|
|
$
|
92,414
|
|
|
1
|
%
|
|
4
|
%
|
|
Other time
|
|
|
4,052
|
|
|
|
4,057
|
|
|
|
4,074
|
|
|
|
4,022
|
|
|
|
3,936
|
|
|
-
|
|
|
3
|
%
|
|
Subtotal - Core deposits
|
|
$
|
99,728
|
|
|
$
|
98,717
|
|
|
$
|
100,534
|
|
|
$
|
98,194
|
|
|
$
|
96,350
|
|
|
1
|
%
|
|
4
|
%
|
|
Certificates - $100,000 and over
|
|
|
3,305
|
|
|
|
2,924
|
|
|
|
2,558
|
|
|
|
2,683
|
|
|
|
2,998
|
|
|
13
|
%
|
|
10
|
%
|
|
Other
|
|
|
7
|
|
|
|
222
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
(97
|
%)
|
|
100
|
%
|
|
Total average deposits
|
|
$
|
103,040
|
|
|
$
|
101,863
|
|
|
$
|
103,092
|
|
|
$
|
100,877
|
|
|
$
|
99,348
|
|
|
1
|
%
|
|
4
|
%
|
|
(a) Includes commercial customer Eurodollar sweep balances for
which the Bancorp pays rates comparable to other commercial
deposit accounts.
|
|
|
|
Average core deposits increased $1.0 billion, or 1 percent, sequentially
and increased $3.4 billion, or 4 percent, from the fourth quarter of
2014. Average transaction deposits increased $1.0 billion, or 1 percent,
from the third quarter of 2015 and increased $3.3 billion, or 4 percent
from the fourth quarter of 2014. Sequential performance was primarily
driven by higher demand deposit and money market account balances,
partially offset by lower interest checking and savings account
balances. Year-over-year growth reflected higher demand and money market
account balances, partially offset by lower savings, foreign office, and
interest checking account balances. Other time deposits were flat
sequentially and increased 3 percent compared with the fourth quarter of
2014.
Average commercial transaction deposits increased 2 percent sequentially
and increased 5 percent from the previous year. Sequential performance
was primarily driven by seasonally higher demand deposit and money
market account balances, partially offset by lower interest checking
account balances. Year-over-year growth reflected higher demand deposit
and money market account balances, partially offset by lower foreign
office and interest checking account balances.
Average consumer transaction deposits were flat sequentially and
increased 2 percent from the fourth quarter of 2014. The sequential
performance reflected higher interest checking account balances,
partially offset by lower savings account balances. Year-over-year
growth was driven by increased money market account, interest checking,
and demand deposit account balances, partially offset by lower savings
account balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Funding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Average Wholesale Funding ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates - $100,000 and over
|
|
$
|
3,305
|
|
|
$
|
2,924
|
|
|
$
|
2,558
|
|
|
$
|
2,683
|
|
|
$
|
2,998
|
|
|
13
|
%
|
|
10
|
%
|
|
Other deposits
|
|
|
7
|
|
|
|
222
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
(97
|
%)
|
|
100
|
%
|
|
Federal funds purchased
|
|
|
1,182
|
|
|
|
1,978
|
|
|
|
326
|
|
|
|
172
|
|
|
|
161
|
|
|
(40
|
%)
|
|
NM
|
|
|
Other short-term borrowings
|
|
|
1,675
|
|
|
|
1,897
|
|
|
|
1,705
|
|
|
|
1,602
|
|
|
|
1,481
|
|
|
(12
|
%)
|
|
13
|
%
|
|
Long-term debt
|
|
|
15,772
|
|
|
|
14,697
|
|
|
|
13,773
|
|
|
|
14,448
|
|
|
|
14,855
|
|
|
7
|
%
|
|
6
|
%
|
|
Total average wholesale funding
|
|
$
|
21,941
|
|
|
$
|
21,718
|
|
|
$
|
18,362
|
|
|
$
|
18,905
|
|
|
$
|
19,495
|
|
|
1
|
%
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average wholesale funding of $21.9 billion increased $223 million, or 1
percent, sequentially, and increased $2.4 billion, or 13 percent,
compared with the fourth quarter of 2014. The sequential increase was
primarily driven by the full quarter’s impact of the issuance of $1.1
billion of 5-year holding company debt and $1.3 billion of 3-year
bank-level debt in the third quarter of 2015, a $750 million auto
securitization completed in November, and an increase in certificates
$100,000 and over. The year-over-year increase in average wholesale
funding reflected an increase in federal funds purchased, an increase in
long-term debt due to issuances in 2015, as well as an increase in
certificates $100,000 and over.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
|
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
Seq
|
|
Yr/Yr
|
|
Noninterest Income ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits
|
|
$
|
144
|
|
$
|
145
|
|
$
|
139
|
|
$
|
135
|
|
$
|
142
|
|
(1
|
%)
|
|
1
|
%
|
|
Corporate banking revenue
|
|
|
104
|
|
|
104
|
|
|
113
|
|
|
63
|
|
|
120
|
|
-
|
|
|
(13
|
%)
|
|
Mortgage banking net revenue
|
|
|
74
|
|
|
71
|
|
|
117
|
|
|
86
|
|
|
61
|
|
4
|
%
|
|
21
|
%
|
|
Investment advisory revenue
|
|
|
102
|
|
|
103
|
|
|
105
|
|
|
108
|
|
|
100
|
|
(1
|
%)
|
|
2
|
%
|
|
Card and processing revenue
|
|
|
77
|
|
|
77
|
|
|
77
|
|
|
71
|
|
|
76
|
|
-
|
|
|
1
|
%
|
|
Other noninterest income
|
|
|
602
|
|
|
213
|
|
|
1
|
|
|
163
|
|
|
150
|
|
NM
|
|
|
NM
|
|
|
Securities gains, net
|
|
|
1
|
|
|
-
|
|
|
4
|
|
|
4
|
|
|
4
|
|
-
|
|
|
(75
|
%)
|
|
Total noninterest income
|
|
$
|
1,104
|
|
$
|
713
|
|
$
|
556
|
|
$
|
630
|
|
$
|
653
|
|
55
|
%
|
|
69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income of $1.1 billion increased $391 million sequentially
and increased $451 million compared with prior year results. The
sequential and year-over-year comparisons reflect the impacts described
below.
|
|
|
Noninterest Income excluding certain items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
December
|
|
September
|
|
|
December
|
|
|
|
|
|
|
|
|
2015
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
Seq
|
|
Yr/Yr
|
|
Noninterest Income excluding certain items ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (U.S. GAAP)
|
|
$
|
1,104
|
|
|
|
$
|
713
|
|
|
|
$
|
653
|
|
|
|
|
|
|
|
Gain on sale of Vantiv shares
|
|
|
(331
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
Gain on Vantiv warrant actions
|
|
|
(89
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
Vantiv TRA settlement payment
|
|
|
(49
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
Vantiv warrant valuation
|
|
|
(21
|
)
|
|
|
|
(130
|
)
|
|
|
|
(56
|
)
|
|
|
|
|
|
|
Valuation of Visa total return swap
|
|
|
10
|
|
|
|
|
8
|
|
|
|
|
19
|
|
|
|
|
|
|
|
Securities (gains) / losses
|
|
|
(1
|
)
|
|
|
|
-
|
|
|
|
|
(4
|
)
|
|
|
|
|
|
|
Noninterest income excluding certain items
|
|
$
|
623
|
|
|
|
$
|
591
|
|
|
|
$
|
612
|
|
|
|
5
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding the items in the table above, noninterest income of $623
million increased $32 million, or 5 percent, from the previous quarter
and increased $11 million, or 2 percent, from the fourth quarter of
2014. The sequential growth was primarily due to an annual payment from
Vantiv pursuant to the tax receivable agreement of $31 million
recognized in the fourth quarter of 2015. Year-over-year growth was
driven by growth in mortgage banking revenue and the annual payment from
Vantiv pursuant to the tax receivable agreement recognized in both
quarters, partially offset by a decrease in corporate banking revenue.
Service charges on deposits of $144 million decreased 1 percent from the
third quarter of 2015 and increased 1 percent compared with the same
quarter last year. The sequential decrease was due to a 3 percent
decrease in retail service charges. The increase from the fourth quarter
of 2014 was due to a 3 percent increase in commercial service charges.
Corporate banking revenue of $104 million was flat compared to the third
quarter of 2015 and decreased $16 million from the fourth quarter of
2014. The sequential comparison reflects higher lease remarketing fees,
partially offset by a decrease in institutional sales revenue. The
year-over-year decrease was driven by lower loan syndications revenue,
foreign exchange fees, and business lending fees, partially offset by
higher lease remarketing and institutional sales revenue.
Mortgage banking net revenue was $74 million in the fourth quarter of
2015, up $3 million from the third quarter of 2015 and up $13 million
from the fourth quarter of 2014. Fourth quarter 2015 originations were
$1.8 billion, compared with $2.3 billion in the previous quarter and
$1.7 billion in the fourth quarter of 2014. Fourth quarter 2015
originations resulted in gains of $37 million on mortgages sold,
compared with gains of $46 million during the previous quarter and $36
million during the fourth quarter of 2014. Mortgage servicing fees were
$53 million this quarter, $54 million in the third quarter of 2015, and
$60 million in the fourth quarter of 2014. Mortgage banking net revenue
is also affected by net servicing asset valuation 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 $16 million in the
fourth quarter of 2015 (reflecting MSR amortization of $29 million and
MSR valuation adjustments of positive $13 million); negative $29 million
in the third quarter of 2015 (MSR amortization of $37 million and MSR
valuation adjustments of positive $8 million); and negative $34 million
in the fourth quarter of 2014 (MSR amortization of $32 million and MSR
valuation adjustments of negative $2 million). The mortgage servicing
asset, net of the valuation reserve, was $785 million at quarter end on
a servicing portfolio of $59 billion.
Investment advisory revenue of $102 million decreased 1 percent from the
third quarter of 2015 and increased 2 percent year-over-year. The
increase from the prior year was primarily driven by an increase in
private client services revenue.
Card and processing revenue of $77 million in the fourth quarter of 2015
was flat sequentially and increased 1 percent from the fourth quarter of
2014.
Other noninterest income totaled $602 million in the fourth quarter of
2015, compared with $213 million in the previous quarter and $150
million in the fourth quarter of 2014. As previously described, the
results included the adjustments in the table above with the exception
of securities gains in all comparable periods. Excluding these items,
other noninterest income of $122 million increased approximately $31
million, or 34 percent, from the third quarter of 2015 and increased
approximately $9 million, or 8 percent, from the fourth quarter of 2014.
The sequential and year-over-year increases were primarily due to
payments from Vantiv pursuant to the tax receivable agreement of $31
million recognized in the fourth quarter of 2015 and $23 million
recognized in the fourth quarter of 2014.
Net gains on investment securities were $1 million in the fourth quarter
of 2015, compared with an immaterial gain in the previous quarter and $4
million in the fourth quarter of 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
% Change
|
|
|
|
|
December
|
|
September
|
|
|
June
|
|
|
March
|
|
|
December
|
|
|
|
|
|
|
|
|
2015
|
|
|
2015
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
2014
|
|
|
Seq
|
|
Yr/Yr
|
|
Noninterest Expense ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and incentives
|
|
$
|
386
|
|
|
$
|
387
|
|
|
$
|
383
|
|
|
$
|
369
|
|
|
$
|
366
|
|
|
-
|
|
|
5
|
%
|
|
Employee benefits
|
|
|
74
|
|
|
|
72
|
|
|
|
78
|
|
|
|
99
|
|
|
|
79
|
|
|
3
|
%
|
|
(6
|
%)
|
|
Net occupancy expense
|
|
|
83
|
|
|
|
77
|
|
|
|
83
|
|
|
|
79
|
|
|
|
77
|
|
|
8
|
%
|
|
8
|
%
|
|
Technology and communications
|
|
|
59
|
|
|
|
56
|
|
|
|
54
|
|
|
|
55
|
|
|
|
54
|
|
|
5
|
%
|
|
9
|
%
|
|
Equipment expense
|
|
|
32
|
|
|
|
31
|
|
|
|
31
|
|
|
|
31
|
|
|
|
30
|
|
|
3
|
%
|
|
7
|
%
|
|
Card and processing expense
|
|
|
40
|
|
|
|
40
|
|
|
|
38
|
|
|
|
36
|
|
|
|
36
|
|
|
-
|
|
|
11
|
%
|
|
Other noninterest expense
|
|
|
289
|
|
|
|
280
|
|
|
|
280
|
|
|
|
254
|
|
|
|
276
|
|
|
3
|
%
|
|
5
|
%
|
|
Total noninterest expense
|
|
$
|
963
|
|
|
$
|
943
|
|
|
$
|
947
|
|
|
$
|
923
|
|
|
$
|
918
|
|
|
2
|
%
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense of $963 million increased 2 percent compared with
the third quarter of 2015 and increased 5 percent compared with the
fourth quarter of 2014. The sequential increase was primarily due to a
$10 million contribution to the Fifth Third Foundation and higher net
occupancy expense. The year-over-year increase reflected a $10 million
contribution to Fifth Third Foundation, higher compensation expense, net
occupancy expense, and technology and communications expense, partially
offset by lower employee benefits expense.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
2014
|
|
|
Total net losses charged-off ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
|
($30
|
)
|
|
|
|
($128
|
)
|
|
|
|
($34
|
)
|
|
|
|
($38
|
)
|
|
|
|
($44
|
)
|
|
|
Commercial mortgage loans
|
|
|
(3
|
)
|
|
|
|
(11
|
)
|
|
|
|
(11
|
)
|
|
|
|
(1
|
)
|
|
|
|
(10
|
)
|
|
|
Commercial construction loans
|
|
|
-
|
|
|
|
|
(3
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
Commercial leases
|
|
|
(1
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(1
|
)
|
|
|
Residential mortgage loans
|
|
|
(3
|
)
|
|
|
|
(3
|
)
|
|
|
|
(5
|
)
|
|
|
|
(6
|
)
|
|
|
|
(94
|
)
|
|
|
Home equity
|
|
|
(9
|
)
|
|
|
|
(9
|
)
|
|
|
|
(9
|
)
|
|
|
|
(14
|
)
|
|
|
|
(11
|
)
|
|
|
Automobile loans
|
|
|
(9
|
)
|
|
|
|
(7
|
)
|
|
|
|
(4
|
)
|
|
|
|
(8
|
)
|
|
|
|
(7
|
)
|
|
|
Credit card
|
|
|
(19
|
)
|
|
|
|
(21
|
)
|
|
|
|
(21
|
)
|
|
|
|
(21
|
)
|
|
|
|
(20
|
)
|
|
|
Other consumer loans and leases
|
|
|
(6
|
)
|
|
|
|
(6
|
)
|
|
|
|
(2
|
)
|
|
|
|
(3
|
)
|
|
|
|
(4
|
)
|
|
Total net losses charged-off
|
|
$
|
(80
|
)
|
|
|
$
|
(188
|
)
|
|
|
$
|
(86
|
)
|
|
|
$
|
(91
|
)
|
|
|
$
|
(191
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total losses charged-off
|
|
$
|
(105
|
)
|
|
|
$
|
(209
|
)
|
|
|
$
|
(112
|
)
|
|
|
$
|
(115
|
)
|
|
|
$
|
(215
|
)
|
|
Total recoveries of losses previously charged-off
|
|
|
25
|
|
|
|
|
21
|
|
|
|
|
26
|
|
|
|
|
24
|
|
|
|
|
24
|
|
|
Total net losses charged-off
|
|
$
|
(80
|
)
|
|
|
$
|
(188
|
)
|
|
|
$
|
(86
|
)
|
|
|
$
|
(91
|
)
|
|
|
$
|
(191
|
)
|
|
Ratios (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses charged-off as a percent of average portfolio loans and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
leases (excluding held for sale)
|
|
|
0.34
|
%
|
|
|
|
0.80
|
%
|
|
|
|
0.37
|
%
|
|
|
|
0.41
|
%
|
|
|
|
0.83
|
%
|
|
|
Commercial
|
|
|
0.24
|
%
|
|
|
|
0.99
|
%
|
|
|
|
0.32
|
%
|
|
|
|
0.29
|
%
|
|
|
|
0.40
|
%
|
|
|
Consumer
|
|
|
0.49
|
%
|
|
|
|
0.51
|
%
|
|
|
|
0.46
|
%
|
|
|
|
0.59
|
%
|
|
|
|
1.47
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs were $80 million, or 34 bps of average loans and leases
on an annualized basis, in the fourth quarter of 2015 compared with net
charge-offs of $188 million, or 80 bps, in the third quarter of 2015 and
$191 million, or 83 bps, in the fourth quarter of 2014. Third quarter
2015 net charge-offs included $102 million related to the restructuring
of a student loan backed commercial credit. Excluding this credit in the
third quarter of 2015 net charge-offs were down $6 million sequentially.
Fourth quarter 2014 net charge-offs included $87 million (38 bps)
related to the transfer of residential mortgage loans classified as
troubled debt restructurings to held-for-sale.
Commercial net charge-offs were $34 million, or 24 bps, and were down
$108 million sequentially. C&I net charge-offs of $30 million decreased
$98 million from the previous quarter primarily due to the student loan
backed credit mentioned above, and commercial real estate net
charge-offs decreased $11 million from the previous quarter.
Consumer net charge-offs were $46 million, or 49 bps, and flat
sequentially. Net charge-offs on residential mortgage loans in the
portfolio were $3 million, flat compared with the previous quarter. Home
equity net charge-offs were $9 million, in line with the third quarter
of 2015, and net charge-offs in the auto portfolio of $9 million were up
$2 million compared with the prior quarter. Net charge-offs on credit
card loans were $19 million, down $2 million from the third quarter of
2015. Net charge-offs on other consumer loans were $6 million,
consistent with the previous quarter.
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
2014
|
|
|
Allowance for Credit Losses ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses, beginning
|
|
$
|
1,261
|
|
|
|
$
|
1,293
|
|
|
|
$
|
1,300
|
|
|
|
$
|
1,322
|
|
|
|
$
|
1,414
|
|
|
Total net losses charged-off
|
|
|
(80
|
)
|
|
|
|
(188
|
)
|
|
|
|
(86
|
)
|
|
|
|
(91
|
)
|
|
|
|
(191
|
)
|
|
Provision for loan and lease losses
|
|
|
91
|
|
|
|
|
156
|
|
|
|
|
79
|
|
|
|
|
69
|
|
|
|
|
99
|
|
|
Allowance for loan and lease losses, ending
|
|
$
|
1,272
|
|
|
|
$
|
1,261
|
|
|
|
$
|
1,293
|
|
|
|
$
|
1,300
|
|
|
|
$
|
1,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for unfunded commitments, beginning
|
|
$
|
134
|
|
|
|
$
|
132
|
|
|
|
$
|
130
|
|
|
|
$
|
135
|
|
|
|
$
|
134
|
|
|
Provision (benefit) for unfunded commitments
|
|
|
4
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
(4
|
)
|
|
|
|
1
|
|
|
Charge-offs
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(1
|
)
|
|
|
|
-
|
|
|
Reserve for unfunded commitments, ending
|
|
$
|
138
|
|
|
|
$
|
134
|
|
|
|
$
|
132
|
|
|
|
$
|
130
|
|
|
|
$
|
135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses
|
|
$
|
1,272
|
|
|
|
$
|
1,261
|
|
|
|
$
|
1,293
|
|
|
|
$
|
1,300
|
|
|
|
$
|
1,322
|
|
|
Reserve for unfunded commitments
|
|
|
138
|
|
|
|
|
134
|
|
|
|
|
132
|
|
|
|
|
130
|
|
|
|
|
135
|
|
|
Total allowance for credit losses
|
|
$
|
1,410
|
|
|
|
$
|
1,395
|
|
|
|
$
|
1,425
|
|
|
|
$
|
1,430
|
|
|
|
$
|
1,457
|
|
|
Allowance for loan and lease losses ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of portfolio loans and leases
|
|
|
1.37
|
%
|
|
|
|
1.35
|
%
|
|
|
|
1.39
|
%
|
|
|
|
1.42
|
%
|
|
|
|
1.47
|
%
|
|
As a percent of nonperforming loans and leases(a)
|
|
|
252
|
%
|
|
|
|
275
|
%
|
|
|
|
272
|
%
|
|
|
|
247
|
%
|
|
|
|
228
|
%
|
|
As a percent of nonperforming assets(a)
|
|
|
197
|
%
|
|
|
|
208
|
%
|
|
|
|
206
|
%
|
|
|
|
188
|
%
|
|
|
|
178
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes nonaccrual loans and leases in loans held for sale.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan and lease losses totaled $91 million in the fourth
quarter of 2015. The allowance represented 1.37 percent of total
portfolio loans and leases outstanding as of quarter end, compared with
1.35 percent last quarter, and represented 252 percent of nonperforming
loans and leases, and 197 percent of nonperforming assets.
The provision decreased $65 million from the third quarter of 2015 and
decreased $8 million from the fourth quarter of 2014. Provision in the
prior quarter included a $35 million impact related to the
aforementioned student loan backed commercial credit. The allowance for
loan and lease losses increased $11 million sequentially.
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
December
|
September
|
June
|
March
|
December
|
|
Nonperforming Assets and Delinquent Loans ($ in millions)
|
|
2015
|
2015
|
2015
|
2015
|
2014
|
|
Nonaccrual portfolio loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
$
|
82
|
|
|
$
|
47
|
|
|
$
|
61
|
|
|
$
|
61
|
|
|
$
|
86
|
|
|
|
|
Commercial mortgage loans
|
|
|
56
|
|
|
|
60
|
|
|
|
49
|
|
|
|
57
|
|
|
|
64
|
|
|
|
|
Commercial construction loans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
Commercial leases
|
|
|
-
|
|
|
|
2
|
|
|
|
2
|
|
|
|
2
|
|
|
|
3
|
|
|
|
|
Residential mortgage loans
|
|
|
28
|
|
|
|
31
|
|
|
|
35
|
|
|
|
40
|
|
|
|
44
|
|
|
|
|
Home equity
|
|
|
62
|
|
|
|
65
|
|
|
|
70
|
|
|
|
71
|
|
|
|
72
|
|
|
|
|
|
Total nonaccrual portfolio loans and leases (excludes restructured
loans)
|
|
$
|
228
|
|
|
$
|
205
|
|
|
$
|
217
|
|
|
$
|
231
|
|
|
$
|
269
|
|
|
|
|
Restructured loans - commercial (nonaccrual)(c)
|
|
|
203
|
|
|
|
177
|
|
|
|
175
|
|
|
|
205
|
|
|
|
214
|
|
|
|
|
Restructured loans - consumer (nonaccrual)
|
|
|
75
|
|
|
|
76
|
|
|
|
83
|
|
|
|
90
|
|
|
|
96
|
|
|
|
|
|
Total nonaccrual portfolio loans and leases
|
|
$
|
506
|
|
|
$
|
458
|
|
|
$
|
475
|
|
|
$
|
526
|
|
|
$
|
579
|
|
|
|
Repossessed personal property
|
|
|
18
|
|
|
|
17
|
|
|
|
16
|
|
|
|
20
|
|
|
|
18
|
|
|
|
OREO(a)
|
|
|
123
|
|
|
|
131
|
|
i
|
|
135
|
|
i
|
|
145
|
|
i
|
|
147
|
|
i
|
|
|
|
Total nonperforming assets(b)
|
|
$
|
647
|
|
|
$
|
606
|
|
|
$
|
626
|
|
|
$
|
691
|
|
|
$
|
744
|
|
|
|
Nonaccrual loans held for sale
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
2
|
|
|
|
24
|
|
|
|
Restructured loans - (nonaccrual) held for sale
|
|
|
11
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15
|
|
|
|
Total nonperforming assets including loans held for sale
|
|
$
|
659
|
|
|
$
|
608
|
|
|
$
|
627
|
|
|
$
|
693
|
|
|
$
|
783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured Consumer loans and leases (accrual)
|
|
$
|
979
|
|
|
$
|
973
|
|
|
$
|
970
|
|
|
$
|
943
|
|
|
$
|
905
|
|
|
|
Restructured Commercial loans and leases (accrual)(c)
|
|
$
|
491
|
|
|
$
|
571
|
|
|
$
|
769
|
|
|
$
|
774
|
|
|
$
|
844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases 90 days past due
|
|
$
|
75
|
|
|
$
|
70
|
|
|
$
|
70
|
|
|
$
|
78
|
|
|
$
|
87
|
|
|
|
Nonperforming loans and leases as a percent of portfolio loans,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
leases and other assets, including OREO(b)
|
|
|
0.55
|
%
|
|
|
0.49
|
%
|
|
|
0.51
|
%
|
|
|
0.57
|
%
|
|
|
0.64
|
%
|
|
|
Nonperforming assets as a percent of portfolio loans, leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other assets, including OREO(b)
|
|
|
0.70
|
%
|
|
|
0.65
|
%
|
|
|
0.67
|
%
|
|
|
0.76
|
%
|
|
|
0.82
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes OREO related to government insured loans. The
Bancorp has historically excluded government guaranteed loans
classified in OREO from its nonperforming asset disclosures. Upon
the prospective adoption on January 1, 2015 of ASU 2014-14
“Classification of Certain Government-Guaranteed Mortgage Loans Upon
Foreclosure,” government guaranteed loans meeting certain criteria
were reclassified to other receivables rather than OREO upon
foreclosure.
|
|
(b) Does not include nonaccrual loans held for sale.
|
|
(c) Excludes $20 million of restructured nonaccrual loans and $7
million of restructured accruing loans as of December 31, 2015.
Excludes $21 million of restructured nonaccrual loans and $7 million
of restructured accruing loans as of September 30, 2015, June 30,
2015, March 31, 2015 and December 31, 2014.
|
|
|
|
Total nonperforming assets, including loans held-for-sale, increased $51
million, or 8 percent, from the previous quarter to $659 million.
Nonperforming loans (NPLs) at quarter-end increased $48 million, or 10
percent, from the previous quarter to $506 million or 0.55 percent of
total loans, leases and OREO.
Commercial NPAs increased $49 million, or 13 percent, from the third
quarter to $419 million, or 0.75 percent of commercial loans, leases and
OREO. Commercial NPLs increased $55 million from last quarter to $341
million, or 0.61 percent of commercial loans and leases. C&I NPAs
increased $89 million from the prior quarter to $272 million. Commercial
mortgage NPAs decreased $27 million from the previous quarter to $138
million. Commercial construction NPAs decreased $11 million from the
previous quarter to $8 million. Commercial lease NPAs were $1 million,
down $2 million from the previous quarter. Commercial NPAs included $203
million of nonaccrual troubled debt restructurings (TDRs), compared with
$177 million last quarter.
Consumer NPAs decreased $8 million from the third quarter to $228
million, or 0.62 percent of consumer loans, leases and OREO. Consumer
NPLs decreased $7 million from last quarter to $165 million, or 0.45
percent of consumer loans and leases. Residential mortgage NPAs
decreased $5 million from the second quarter to $86 million. Home equity
NPAs decreased $5 million, sequentially, to $98 million. Consumer
nonaccrual TDRs were $75 million in the fourth quarter of 2015, compared
with $76 million in the third quarter of 2015.
Fourth quarter OREO balances included in NPA balances were down $8
million from the third quarter to $123 million, and included $69 million
in commercial OREO and $54 million in consumer OREO. Repossessed
personal property increased $1 million from the prior quarter to $18
million.
Loans over 90 days past due and still accruing increased $5 million from
the third quarter of 2015 to $75 million. Commercial balances over 90
days past due were $7 million compared with $5 million in the prior
quarter, and consumer balances 90 days past due increased $3 million
from the previous quarter to $68 million. Loans 30-89 days past due of
$245 million were up $31 million from the previous quarter. Commercial
balances 30-89 days past due increased $10 million sequentially to $35
million and consumer balances 30-89 days past due were up $21 million
from the third quarter at $210 million. The above delinquency figures
exclude nonaccruals described previously.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
December
|
|
September
|
|
June
|
|
March
|
|
December
|
|
|
|
|
2015
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
|
Capital Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total Bancorp shareholders' equity to average assets
|
|
|
11.25
|
%
|
|
|
|
11.24
|
%
|
|
|
|
11.32
|
%
|
|
|
11.49
|
%
|
|
|
|
11.54
|
%
|
|
Tangible equity(a)
|
|
|
9.55
|
%
|
|
|
|
9.28
|
%
|
|
|
|
9.28
|
%
|
|
|
9.37
|
%
|
|
|
|
9.41
|
%
|
|
Tangible common equity (excluding unrealized gains/losses)(a)
|
|
|
8.59
|
%
|
|
|
|
8.32
|
%
|
|
|
|
8.33
|
%
|
|
|
8.40
|
%
|
|
|
|
8.43
|
%
|
|
Tangible common equity (including unrealized gains/losses)(a)
|
|
|
8.71
|
%
|
|
|
|
8.65
|
%
|
|
|
|
8.51
|
%
|
|
|
8.77
|
%
|
|
|
|
8.71
|
%
|
|
Tangible common equity as a percent of risk-weighted assets
(excluding unrealized gains/losses)
|
|
|
9.76
|
%(b)
|
|
|
|
9.37
|
%(b)
|
|
|
|
9.39
|
%(b)
|
|
|
9.49
|
%(b)
|
|
|
|
9.70
|
%(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital ratios:
|
|
Basel III
|
|
|
|
|
|
|
|
Transitional(c)
|
|
|
Basel I(d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CET1 capital
|
|
|
9.83
|
%(b)
|
|
|
|
9.40
|
%(b)
|
|
|
|
9.42
|
%(b)
|
|
|
9.52
|
%(b)
|
|
|
|
N/A
|
|
|
|
Tier I risk-based capital
|
|
|
10.93
|
%(b)
|
|
|
|
10.49
|
%(b)
|
|
|
|
10.51
|
%(b)
|
|
|
10.62
|
%(b)
|
|
|
|
10.83
|
%
|
|
|
Total risk-based capital
|
|
|
14.13
|
%(b)
|
|
|
|
13.68
|
%(b)
|
|
|
|
13.69
|
%(b)
|
|
|
14.01
|
%(b)
|
|
|
|
14.33
|
%
|
|
|
Tier I leverage
|
|
|
9.54
|
%
|
|
|
|
9.38
|
%
|
|
|
|
9.44
|
%
|
|
|
9.59
|
%
|
|
|
|
9.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier I common equity
|
|
|
N/A
|
|
|
|
|
N/A
|
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
|
9.65
|
%(a)
|
|
|
CET1 capital (fully phased-in)
|
|
|
9.73
|
%(a)(b)
|
|
|
|
9.30
|
%(a)(b)
|
|
|
|
9.31
|
%(a)(b)
|
|
|
9.41
|
%(a)(b)
|
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share
|
|
$
|
18.48
|
|
|
|
$
|
18.22
|
|
|
|
$
|
17.62
|
|
|
$
|
17.83
|
|
|
|
$
|
17.35
|
|
|
Tangible book value per share(a)
|
|
$
|
15.39
|
|
|
|
$
|
15.18
|
|
|
|
$
|
14.62
|
|
|
$
|
14.85
|
|
|
|
$
|
14.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
These ratios have been included herein to facilitate a greater
understanding of the Bancorp's 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 Basel III Final Rule, assets and
credit equivalent amounts of off-balance sheet exposures are
calculated based upon the standardized approach for risk-weighted
assets. The resulting values are added together resulting in the
Bancorp's total risk-weighted assets.
|
|
(c)
|
Current period regulatory capital ratios are estimated.
|
|
(d)
|
These capital ratios were calculated under the Supervisory
Agencies general risk-based capital rules (Basel I) which was in
effect prior to January 1, 2015.
|
|
|
|
Capital ratios were strong during the quarter. The common equity Tier 1
ratio was 9.83 percent, the tangible common equity to tangible assets
ratio* was 8.59 percent (excluding unrealized gains/losses), and 8.71
percent (including unrealized gains/losses). The Tier 1 risk-based
capital ratio was 10.93 percent, the total risk-based capital ratio was
14.13 percent, and the Leverage ratio was 9.54 percent.
Book value per share at December 31, 2015 was $18.48 and tangible book
value per share* was $15.39, compared with the September 30, 2015 book
value per share of $18.22 and tangible book value per share* of $15.18.
Fifth Third entered into or completed multiple share repurchases during
the quarter. Below is a summary of those share repurchases.
-
On October 23, 2015, Fifth Third settled the forward contract related
to the September 9, 2015 $150 million share repurchase agreement. An
additional 1.45 million shares were repurchased in connection with the
completion of this agreement.
-
On December 14, 2015, Fifth Third entered into a share repurchase
agreement whereby Fifth Third would purchase approximately $215
million of its outstanding stock, which reduced the fourth quarter
share count by 9.25 million shares.
-
On January 14, 2016, Fifth Third settled the forward contract related
to the December 14, 2015 $215 million share repurchase agreement. An
additional 1.78 million shares were repurchased in connection with the
completion of this agreement.
In total, common shares outstanding decreased by approximately 10
million shares in the fourth quarter of 2015 from the third quarter of
2015.
* Non-GAAP measure; see Reg. G reconciliation on page 34 in Exhibit
99.1 of 8-k filing dated 1/21/16.
Tax Rate
The effective tax rate was 30.7 percent in the fourth quarter of 2015
compared with 26.0 percent in the third quarter of 2015 and 25.9 percent
in the fourth quarter of 2014. The sequential and year-over-year
increase was primarily driven by the impact of Vantiv-related
transactions during the quarter.
Other
On October 23, 2015, Fifth Third Bancorp entered into an agreement with
Vantiv, Inc. (NYSE: VNTV) under which a portion of its Tax Receivable
Agreement (“TRA”) with Vantiv was terminated and settled in full for
consideration of a cash payment in the amount of $48.9 million from
Vantiv. Under the agreement, Fifth Third Bancorp sold certain TRA cash
flows it expected to receive from 2017 to 2030, totaling an estimated
$140 million. This sale did not impact the TRA payment recognized in the
fourth quarter of 2015 and does not impact the TRA payment expected to
be recognized in the fourth quarter of 2016. For more detail see the 8-K
dated October 28, 2015.
On December 2, 2015, Vantiv, Inc. conducted a secondary offering of 13.4
million shares of its Class A Common Stock on behalf of Fifth Third. The
offering was the culmination of a three-step process that included 1)
the partial cancellation of the warrant held by Fifth Third to purchase
additional ownership in Vantiv Holding, LLC for a $200 million cash
payment; 2) the net exercise of a portion of the remaining warrant for
5.4 million Class C units; and 3) the exchange of these 5.4 million
Class C units and 8 million Class B units for the 13.4 million shares of
Vantiv, Inc. Class A Common Stock included in the secondary offering.
During the fourth quarter, Fifth Third recognized a pre-tax gain of $420
million related to the ownership interests included in these
transactions. For more detail see the press release dated December 3,
2015.
Fifth Third Bank owns approximately 35 million units representing an
18.3 percent interest in Vantiv Holding, LLC, convertible into shares of
Vantiv, Inc., a publicly traded firm. Based upon Vantiv’s closing price
of $47.42 on December 31, 2015, our interest in Vantiv was valued at
approximately $1.7 billion. Next month in our 10-K, we will update our
disclosure of the carrying value of our interest in Vantiv stock, which
was $422 million as of September 30, 2015. The difference between the
market value and the book value of Fifth Third’s interest in Vantiv’s
shares is not recognized in Fifth Third’s equity or capital.
Additionally, Fifth Third has a remaining warrant to purchase
approximately 7.8 million additional shares in Vantiv which is carried
as a derivative asset at a fair value of $262 million as of December 31,
2015.
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”). Institutional
investors can access the call via Thomson Financial’s password-protected
event management site, StreetEvents (www.streetevents.com).
Those unable to listen to the live webcast may access a webcast replay
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 Thursday, February 4, 2016 by dialing 800-585-8367 for domestic
access or 404-537-3406 for international access (passcode 96623560#).
Corporate Profile
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of December 31, 2015, the Company
had $141 billion in assets and operates 1,254 full-service Banking
Centers, including 95 Bank Mart® locations, most open seven days a week,
inside select grocery stores and 2,593 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 an 18.3% interest in Vantiv
Holding, LLC. Fifth Third is among the largest money managers in the
Midwest and, as of December 31, 2015, had $297 billion in assets under
care, of which it managed $26 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 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,” “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 is a risk that additional information may become known during
the company’s quarterly closing process or as a result of subsequent
events that could affect the accuracy of the statements and financial
information contained herein.
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 the
economy weaken and become less favorable than expected, particularly in
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; (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 and adequate sources of funding and
liquidity 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, relationship with, and nature of the
operations of Vantiv, LLC; (21) loss of income from any sale or
potential sale of businesses; (22) difficulties in separating the
operations of any branches or other assets divested; (23) inability to
achieve expected benefits from branch consolidations and planned sales
within desired timeframes, if at all; (24) ability to secure
confidential information and deliver products and services through the
use of computer systems and telecommunications networks; and (25) 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