- 3Q16 net income available to common shareholders of $501 million, or $0.65 per diluted common share
- Reported results included the following items which had a net positive $0.22 impact on reported 3Q16 EPS:
- A $280 million pre-tax (~$182 million after-tax) gain from the termination and settlement of gross cash flows from existing Vantiv tax receivable agreements (TRA) and the expected obligation to terminate and settle the remaining TRA cash flows upon the exercise of put or call options
- A $28 million pre-tax (~$18 million after-tax) non-cash impairment charge related to previously announced plans to sell or consolidate certain bank branches and land acquired for future branch expansion
- A $12 million pre-tax (~$8 million after-tax) charge related to the valuation of the Visa total return swap
- An $11 million pre-tax (~$7 million after-tax) gain on the sale of a non-branch facility
- A $9 million pre-tax (~$6 million after-tax) charge from the transfer of certain nonconforming investments affected by the Volcker Rule to held-for-sale
- An $8 million beneficial tax impact in connection with certain commercial lease terminations
- 3Q16 return on average assets (ROA) of 1.44%; return on average common equity of 12.8%; return on average tangible common equity** of 15.2%
- Pre-tax income of $694 million and pre-provision net revenue (PPNR)** of $774 million in 3Q16
- Net interest income (NII) of $907 million and NII on a fully taxable equivalent (FTE) basis** of $913 million, up 1 percent from both 2Q16 and 3Q15; net interest margin (on an FTE basis)** of 2.88%, flat sequentially and down 1 bp year-over-year
- Average portfolio loans and leases of $93.5 billion, down $420 million sequentially and up $138 million from 3Q15; Period end portfolio loans and leases of $93.2 billion decreased $758 million sequentially and $423 million from 3Q15 primarily driven by decreases in automobile, C&I, and home equity loans
- Noninterest income of $840 million compared with $599 million in the prior quarter; primarily driven by the gain from the termination and settlement of the Vantiv tax receivable agreement and other items previously mentioned
- Noninterest expense of $973 million was $10 million, or 1 percent, lower than the prior quarter primarily driven by lower compensation and benefit-related expenses and lower card and processing expense
- Credit trends
- 3Q16 net charge-offs of $107 million (0.45% of loans and leases) increased from 2Q16 NCOs of $87 million (0.37% of loans and leases)
- Portfolio nonperforming asset (NPA) ratio of 0.73% down 13 bps from 2Q16, nonperforming loan (NPL) ratio of 0.63% down 11 bps from 2Q16; total NPAs of $783 million, including loans held-for-sale (HFS), decreased $42 million sequentially
- 3Q16 provision expense of $80 million; $91 million in 2Q16 and $156 million in 3Q15
- Strong capital ratios*
- Common equity Tier 1 (CET1) ratio 10.16%; fully phased-in CET1 ratio** of 10.08%
- Tier 1 risk-based capital ratio 11.26%, Total risk-based capital ratio 14.87%, Leverage ratio 9.80%
- Tangible common equity ratio of 9.24%**; 8.78%** excluding unrealized gains/losses
- 11 million reduction in common shares outstanding during the quarter due to the $240 million accelerated share repurchase transaction initially settled on August 5, 2016
- Book value per share of $20.44 up 2% from 2Q16 and up 12% from 3Q15; tangible book value per share** of $17.22 up 2% from 2Q16 and up 13% from 3Q15
* Capital ratios estimated; presented under current U.S. capital regulations.
** Non-GAAP measure; see discussion of non-GAAP and Reg. G reconciliation beginning on page 33 in Exhibit 99.1 of 8-K filing dated 10/20/16.
Fifth Third Bancorp (Nasdaq: FITB) today reported third quarter 2016 net
income of $516 million versus net income of $333 million in the second
quarter of 2016 and $381 million in the third quarter of 2015. After
preferred dividends, net income available to common shareholders was
$501 million, or $0.65 per diluted share, in the third quarter of 2016,
compared with $310 million, or $0.40 per diluted share, in the second
quarter of 2016, and $366 million, or $0.45 per diluted share, in the
third quarter of 2015.
Third quarter 2016 included:
Income
-
$280 million gain from the termination and settlement of gross cash
flows from existing Vantiv tax receivable agreements (TRA) and the
expected obligation to terminate and settle the remaining TRA cash
flows upon the exercise of put or call options
-
$11 million gain on the sale of a non-branch facility
-
($28 million) non-cash impairment charge related to previously
announced plans to sell or consolidate certain bank branches and land
acquired for future branch expansion
-
($12 million) charge related to the valuation of the Visa total return
swap
-
($9 million) charge from the transfer of certain nonconforming
investments affected by the Volcker Rule to held-for-sale
-
($2 million) negative valuation adjustment on the Vantiv warrant
Expense
-
($4 million) in severance expense
Results also included an $8 million beneficial tax impact in connection
with certain commercial lease terminations
Second quarter 2016 included:
Income
-
$19 million positive valuation adjustment on the Vantiv warrant
-
$11 million gain on sale of Pennsylvania branches as part of the
previously announced branch consolidation and sales plan
-
$11 million gain on the sale of the non-strategic agented bankcard
loan portfolio
-
($50 million) charge related to the valuation of the Visa total return
swap, primarily reflecting the rejection of the merchant litigation
settlement
Expense
-
($9 million) in compensation-related expenses due to retirement
eligibility changes
-
($3 million) in severance expense
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
Expense
-
($9 million) charge associated with executive retirement and severance
costs
Results also included $35 million of provision expense related to the
restructuring of a student loan backed commercial credit originally
extended in 2007.
|
Earnings Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Seq
|
|
Yr/Yr
|
|
Earnings ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Bancorp
|
|
$
|
516
|
|
|
$
|
333
|
|
|
$
|
327
|
|
|
$
|
657
|
|
|
$
|
381
|
|
|
55
|
%
|
|
35
|
%
|
|
Net income available to common shareholders
|
|
$
|
501
|
|
|
$
|
310
|
|
|
$
|
312
|
|
|
$
|
634
|
|
|
$
|
366
|
|
|
62
|
%
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic
|
|
$
|
0.66
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
|
$
|
0.80
|
|
|
$
|
0.46
|
|
|
65
|
%
|
|
43
|
%
|
|
Earnings per share, diluted
|
|
|
0.65
|
|
|
|
0.40
|
|
|
|
0.40
|
|
|
|
0.79
|
|
|
|
0.45
|
|
|
63
|
%
|
|
44
|
%
|
|
Cash dividends per common share
|
|
|
0.13
|
|
|
|
0.13
|
|
|
|
0.13
|
|
|
|
0.13
|
|
|
|
0.13
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
1.44
|
%
|
|
|
0.94
|
%
|
|
|
0.93
|
%
|
|
|
1.83
|
%
|
|
|
1.07
|
%
|
|
53
|
%
|
|
35
|
%
|
|
Return on average common equity
|
|
|
12.8
|
|
|
|
8.2
|
|
|
|
8.3
|
|
|
|
17.2
|
|
|
|
10.0
|
|
|
56
|
%
|
|
28
|
%
|
|
Return on average tangible common equity(b)
|
|
|
15.2
|
|
|
|
9.7
|
|
|
|
9.9
|
|
|
|
20.6
|
|
|
|
12.0
|
|
|
57
|
%
|
|
27
|
%
|
|
CET1 capital(c)
|
|
|
10.16
|
|
|
|
9.94
|
|
|
|
9.81
|
|
|
|
9.82
|
|
|
|
9.40
|
|
|
2
|
%
|
|
8
|
%
|
|
Tier I risk-based capital(c)
|
|
|
11.26
|
|
|
|
11.03
|
|
|
|
10.91
|
|
|
|
10.93
|
|
|
|
10.49
|
|
|
2
|
%
|
|
7
|
%
|
|
CET1 capital (fully-phased in)(b)(c)
|
|
|
10.08
|
|
|
|
9.86
|
|
|
|
9.72
|
|
|
|
9.72
|
|
|
|
9.30
|
|
|
2
|
%
|
|
8
|
%
|
|
Net interest margin(a)(b)
|
|
|
2.88
|
|
|
|
2.88
|
|
|
|
2.91
|
|
|
|
2.85
|
|
|
|
2.89
|
|
|
-
|
|
|
-
|
|
|
Efficiency(a)(b)
|
|
|
55.5
|
|
|
|
65.3
|
|
|
|
63.8
|
|
|
|
48.0
|
|
|
|
58.2
|
|
|
(15
|
%)
|
|
(5
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding (in thousands)
|
|
|
755,582
|
|
|
|
766,346
|
|
|
|
770,471
|
|
|
|
785,080
|
|
|
|
795,439
|
|
|
(1
|
%)
|
|
(5
|
%)
|
|
Average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
750,886
|
|
|
|
759,105
|
|
|
|
773,564
|
|
|
|
784,855
|
|
|
|
795,793
|
|
|
(1
|
%)
|
|
(6
|
%)
|
|
Diluted
|
|
|
757,456
|
|
|
|
765,080
|
|
|
|
778,392
|
|
|
|
794,481
|
|
|
|
805,023
|
|
|
(1
|
%)
|
|
(6
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Presented on a fully taxable equivalent basis.
|
|
(b) Non-GAAP measure; see discussion of non-GAAP and Reg. G
reconciliation beginning on page 33.
|
|
(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. Current period regulatory capital ratios are
estimated.
|
|
NA: Not applicable.
|
|
|
“Our third quarter results were strong despite the tepid economic
environment. Higher net interest income, stable underlying fee revenue,
and lower expenses helped us achieve improved returns for our
shareholders,” said Greg D. Carmichael, President and CEO of Fifth Third
Bancorp.
“During the quarter, we executed on several initiatives which will help
us continue to drive improved shareholder returns. While we continue to
invest in areas like technology, we plan to improve our operating
leverage through an ongoing review of expenses in all business units and
staff functions and renegotiations of key vendor contracts. In
September, we announced the plan to sell and consolidate certain bank
branches which will generate additional operating efficiency.
“We remain focused on improving our profitability without relying on the
expectation that economic conditions will improve. We recently launched
Project North Star, which has aligned the entire organization toward
reaching this objective. Through Project North Star, controlled
expenses, opportunities to enhance fee revenue, and actions to optimize
the balance sheet should help us achieve our long-term financial
targets.”
|
Income Statement Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Seq
|
|
Yr/Yr
|
|
Condensed Statements of Income ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (taxable equivalent)(a)
|
|
$
|
913
|
|
$
|
908
|
|
|
$
|
909
|
|
$
|
904
|
|
$
|
906
|
|
1
|
%
|
|
1
|
%
|
|
Provision for loan and lease losses
|
|
|
80
|
|
|
91
|
|
|
|
119
|
|
|
91
|
|
|
156
|
|
(12
|
%)
|
|
(49
|
%)
|
|
Total noninterest income
|
|
|
840
|
|
|
599
|
|
|
|
637
|
|
|
1,104
|
|
|
713
|
|
40
|
%
|
|
18
|
%
|
|
Total noninterest expense
|
|
|
973
|
|
|
983
|
|
|
|
986
|
|
|
963
|
|
|
943
|
|
(1
|
%)
|
|
3
|
%
|
|
Income before income taxes (taxable equivalent)(a)
|
|
$
|
700
|
|
$
|
433
|
|
|
$
|
441
|
|
$
|
954
|
|
$
|
520
|
|
62
|
%
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent adjustment
|
|
|
6
|
|
|
6
|
|
|
|
6
|
|
|
5
|
|
|
5
|
|
-
|
|
|
20
|
%
|
|
Applicable income tax expense
|
|
|
178
|
|
|
98
|
|
|
|
108
|
|
|
292
|
|
|
134
|
|
82
|
%
|
|
33
|
%
|
|
Net income
|
|
$
|
516
|
|
$
|
329
|
|
|
$
|
327
|
|
$
|
657
|
|
$
|
381
|
|
57
|
%
|
|
35
|
%
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
-
|
|
|
(4
|
)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
100
|
%
|
|
-
|
|
|
Net income attributable to Bancorp
|
|
$
|
516
|
|
$
|
333
|
|
|
$
|
327
|
|
$
|
657
|
|
$
|
381
|
|
55
|
%
|
|
35
|
%
|
|
Dividends on preferred stock
|
|
|
15
|
|
|
23
|
|
|
|
15
|
|
|
23
|
|
|
15
|
|
(35
|
%)
|
|
-
|
|
|
Net income available to common shareholders
|
|
$
|
501
|
|
$
|
310
|
|
|
$
|
312
|
|
$
|
634
|
|
$
|
366
|
|
62
|
%
|
|
37
|
%
|
|
Earnings per share, diluted
|
|
$
|
0.65
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
$
|
0.79
|
|
$
|
0.45
|
|
63
|
%
|
|
44
|
%
|
|
(a) Non-GAAP measure; see discussion of non-GAAP and Reg. G
reconciliation beginning on page 33.
|
|
|
|
Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Seq
|
|
Yr/Yr
|
|
Interest Income ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income (taxable equivalent)(a)
|
|
$
|
1,063
|
|
|
$
|
1,052
|
|
|
$
|
1,044
|
|
|
$
|
1,035
|
|
|
$
|
1,031
|
|
|
1
|
%
|
|
3
|
%
|
|
Total interest expense
|
|
|
150
|
|
|
|
144
|
|
|
|
135
|
|
|
|
131
|
|
|
|
125
|
|
|
4
|
%
|
|
20
|
%
|
|
Net interest income (taxable equivalent)(a)
|
|
$
|
913
|
|
|
$
|
908
|
|
|
$
|
909
|
|
|
$
|
904
|
|
|
$
|
906
|
|
|
1
|
%
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
|
|
|
|
|
|
|
|
|
|
|
bps Change
|
|
Yield on interest-earning assets (taxable equivalent)
|
|
|
3.36
|
%
|
|
|
3.34
|
%
|
|
|
3.34
|
%
|
|
|
3.26
|
%
|
|
|
3.29
|
%
|
|
2
|
|
|
7
|
|
|
Rate paid on interest-bearing liabilities
|
|
|
0.70
|
%
|
|
|
0.67
|
%
|
|
|
0.64
|
%
|
|
|
0.61
|
%
|
|
|
0.58
|
%
|
|
3
|
|
|
12
|
|
|
Net interest rate spread (taxable equivalent)
|
|
|
2.66
|
%
|
|
|
2.67
|
%
|
|
|
2.70
|
%
|
|
|
2.65
|
%
|
|
|
2.71
|
%
|
|
(1
|
)
|
|
(5
|
)
|
|
Net interest margin (taxable equivalent)(a)
|
|
|
2.88
|
%
|
|
|
2.88
|
%
|
|
|
2.91
|
%
|
|
|
2.85
|
%
|
|
|
2.89
|
%
|
|
-
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
Loans and leases, including held for sale
|
|
$
|
94,417
|
|
|
$
|
94,807
|
|
|
$
|
94,078
|
|
|
$
|
94,587
|
|
|
$
|
94,329
|
|
|
-
|
|
|
-
|
|
|
Total securities and other short-term investments
|
|
|
31,675
|
|
|
|
32,040
|
|
|
|
31,573
|
|
|
|
31,256
|
|
|
|
30,102
|
|
|
(1
|
%)
|
|
5
|
%
|
|
Total interest-earning assets
|
|
|
126,092
|
|
|
|
126,847
|
|
|
|
125,651
|
|
|
|
125,843
|
|
|
|
124,431
|
|
|
(1
|
%)
|
|
1
|
%
|
|
Total interest-bearing liabilities
|
|
|
85,193
|
|
|
|
86,145
|
|
|
|
85,450
|
|
|
|
85,381
|
|
|
|
85,171
|
|
|
(1
|
%)
|
|
-
|
|
|
Bancorp shareholders' equity
|
|
|
16,883
|
|
|
|
16,584
|
|
|
|
16,376
|
|
|
|
15,982
|
|
|
|
15,815
|
|
|
2
|
%
|
|
7
|
%
|
|
(a) Non-GAAP measure; see discussion of non-GAAP and Reg. G
reconciliation beginning on page 33.
|
|
|
|
|
|
|
|
Net interest income of $907 million and net interest income (FTE)* of
$913 million both increased $5 million from the second quarter of 2016,
primarily driven by improving investment portfolio yields, an increase
in 1-month LIBOR, and day count, partially offset by the full quarter
impact of $1.25 billion of unsecured debt issued in the second quarter
and lower average C&I loan balances.
The net interest margin (FTE)* was 2.88 percent, stable from the
previous quarter, as the impact of higher yielding investments and an
increase in 1-month LIBOR were offset by the full quarter impact of the
debt issuance and day count.
Compared to the third quarter of 2015, net interest income and net
interest income (FTE)* increased by $6 million and $7 million,
respectively. The net interest margin (FTE)* decreased by 1 bp
year-over-year. The increase in net interest income was driven by the
impact of higher investment securities balances, as well as short-term
market rate improvements from the December 2015 Fed funds rate increase.
The decrease in the net interest margin from the prior year was
primarily driven by an increase in long-term debt, lower commercial loan
yields, and a decrease in cash flow hedges, partially offset by the
December 2015 Fed funds rate increase.
* Non-GAAP measure; see discussion of non-GAAP and Reg. G
reconciliation beginning on page 33 in Exhibit 99.1 of 8-K filing dated
10/20/16.
Securities
Average securities and other short-term investments were $31.7 billion
in the third quarter of 2016 compared to $32.0 billion in the previous
quarter and $30.1 billion in the third quarter of 2015. Average balances
of other short-term investments decreased by $126 million sequentially
to $1.8 billion.
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Seq
|
|
Yr/Yr
|
|
Average Portfolio Loans and Leases ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
$
|
43,116
|
|
$
|
43,876
|
|
$
|
43,089
|
|
$
|
43,154
|
|
$
|
43,149
|
|
(2
|
%)
|
|
-
|
|
|
Commercial mortgage loans
|
|
|
6,888
|
|
|
6,831
|
|
|
6,886
|
|
|
7,032
|
|
|
7,023
|
|
1
|
%
|
|
(2
|
%)
|
|
Commercial construction loans
|
|
|
3,848
|
|
|
3,551
|
|
|
3,297
|
|
|
3,141
|
|
|
2,965
|
|
8
|
%
|
|
30
|
%
|
|
Commercial leases
|
|
|
3,962
|
|
|
3,898
|
|
|
3,874
|
|
|
3,839
|
|
|
3,846
|
|
2
|
%
|
|
3
|
%
|
|
Total commercial loans and leases
|
|
$
|
57,814
|
|
$
|
58,156
|
|
$
|
57,146
|
|
$
|
57,166
|
|
$
|
56,983
|
|
(1
|
%)
|
|
1
|
%
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
|
$
|
14,455
|
|
$
|
14,046
|
|
$
|
13,788
|
|
$
|
13,504
|
|
$
|
13,144
|
|
3
|
%
|
|
10
|
%
|
|
Home equity
|
|
|
7,918
|
|
|
8,054
|
|
|
8,217
|
|
|
8,360
|
|
|
8,479
|
|
(2
|
%)
|
|
(7
|
%)
|
|
Automobile loans
|
|
|
10,508
|
|
|
10,887
|
|
|
11,283
|
|
|
11,670
|
|
|
11,877
|
|
(3
|
%)
|
|
(12
|
%)
|
|
Credit card
|
|
|
2,165
|
|
|
2,134
|
|
|
2,179
|
|
|
2,218
|
|
|
2,277
|
|
1
|
%
|
|
(5
|
%)
|
|
Other consumer loans and leases
|
|
|
651
|
|
|
654
|
|
|
662
|
|
|
676
|
|
|
613
|
|
-
|
|
|
6
|
%
|
|
Total consumer loans and leases
|
|
$
|
35,697
|
|
$
|
35,775
|
|
$
|
36,129
|
|
$
|
36,428
|
|
$
|
36,390
|
|
-
|
|
|
(2
|
%)
|
|
Total average portfolio loans and leases
|
|
$
|
93,511
|
|
$
|
93,931
|
|
$
|
93,275
|
|
$
|
93,594
|
|
$
|
93,373
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans held for sale
|
|
$
|
906
|
|
$
|
876
|
|
$
|
803
|
|
$
|
993
|
|
$
|
956
|
|
3
|
%
|
|
(5
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loan and lease balances (excluding loans held-for-sale)
decreased $420 million sequentially and increased $138 million from the
third quarter of 2015. The sequential decrease was primarily driven by
declines in commercial and industrial (C&I) and automobile loans,
partially offset by an increase in residential mortgage and commercial
construction loans. The year-over-year increase in average loans and
leases was driven by increased residential mortgage and commercial
construction, partially offset by decreases in automobile and home
equity loans. Period end loans and leases (excluding loans
held-for-sale) of $93.2 billion decreased $758 million sequentially and
$423 million from a year ago. The decrease sequentially was primarily
due to decreases in automobile and C&I loans, partially offset by
increases in residential mortgage and commercial construction loans. The
year-over-year decline was primarily driven by decreases in automobile
and home equity loans, partially offset by increases in residential
mortgage and commercial construction loans.
Average commercial portfolio loan and lease balances decreased $342
million, or 1 percent, sequentially and increased $831 million, or 1
percent, from the third quarter of 2015. Average C&I loans decreased
$760 million, or 2 percent, from the prior quarter and were flat from
the third quarter of 2015. Average commercial real estate loans
increased $354 million, or 3 percent, from the prior quarter and
increased $748 million, or 7 percent, from the third quarter of 2015.
Within commercial real estate, average commercial mortgage balances
increased $57 million and average commercial construction balances
increased $297 million sequentially. Commercial line usage, on an end of
period basis, decreased 57 bps from the second quarter of 2016 and
decreased 69 bps from the third quarter of 2015.
Average consumer portfolio loan and lease balances decreased $78
million, sequentially and decreased $693 million, or 2 percent, from the
third quarter of 2015. This was primarily driven by average automobile
loans which decreased 3 percent sequentially and 12 percent from a year
ago. Average residential mortgage loans increased 3 percent sequentially
and 10 percent from the previous year. Average home equity loans
declined 2 percent sequentially and 7 percent from the third quarter of
2015. Average credit card loans increased 1 percent sequentially and
decreased 5 percent from the third quarter of 2015.
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Seq
|
|
Yr/Yr
|
|
Average Deposits ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
$
|
35,918
|
|
$
|
35,912
|
|
$
|
35,201
|
|
$
|
36,254
|
|
$
|
35,231
|
|
-
|
|
|
2
|
%
|
|
Interest checking
|
|
|
24,475
|
|
|
24,714
|
|
|
25,740
|
|
|
25,296
|
|
|
25,590
|
|
(1
|
%)
|
|
(4
|
%)
|
|
Savings
|
|
|
14,232
|
|
|
14,576
|
|
|
14,601
|
|
|
14,615
|
|
|
14,868
|
|
(2
|
%)
|
|
(4
|
%)
|
|
Money market
|
|
|
19,706
|
|
|
19,243
|
|
|
18,655
|
|
|
18,775
|
|
|
18,253
|
|
2
|
%
|
|
8
|
%
|
|
Foreign office(a)
|
|
|
524
|
|
|
484
|
|
|
483
|
|
|
736
|
|
|
718
|
|
8
|
%
|
|
(27
|
%)
|
|
Total transaction deposits
|
|
$
|
94,855
|
|
$
|
94,929
|
|
$
|
94,680
|
|
$
|
95,676
|
|
$
|
94,660
|
|
-
|
|
|
-
|
|
|
Other time
|
|
|
4,020
|
|
|
4,044
|
|
|
4,035
|
|
|
4,052
|
|
|
4,057
|
|
(1
|
%)
|
|
(1
|
%)
|
|
Total core deposits
|
|
$
|
98,875
|
|
$
|
98,973
|
|
$
|
98,715
|
|
$
|
99,728
|
|
$
|
98,717
|
|
-
|
|
|
-
|
|
|
Certificates - $100,000 and over
|
|
|
2,768
|
|
|
2,819
|
|
|
2,815
|
|
|
3,305
|
|
|
2,924
|
|
(2
|
%)
|
|
(5
|
%)
|
|
Other
|
|
|
749
|
|
|
467
|
|
|
-
|
|
|
7
|
|
|
222
|
|
60
|
%
|
|
NM
|
|
Total average deposits
|
|
$
|
102,392
|
|
$
|
102,259
|
|
$
|
101,530
|
|
$
|
103,040
|
|
$
|
101,863
|
|
-
|
|
|
1
|
%
|
|
(a) Includes commercial customer Eurodollar sweep balances
for which the Bancorp pays rates comparable to other commercial
deposit accounts.
|
|
|
|
|
|
|
|
|
Average core deposits decreased $98 million sequentially but increased
$158 million from the third quarter of 2015. Average transaction
deposits decreased $74 million from the second quarter of 2016 and
increased $195 million from the third quarter of 2015. Sequential
performance was primarily driven by lower savings and interest checking
account balances, partially offset by higher money market account
balances. The year-over-year increase was primarily driven by higher
money market and demand deposit account balances, partially offset by
lower interest checking, savings and foreign office account balances.
Other time deposits decreased 1 percent sequentially and year-over-year.
Average deposit balances were affected by the full quarter impact of
$302 million in deposits from the sale of Pennsylvania branches in April
of 2016. Excluding the impact of the branch sales in Pennsylvania and
St. Louis, average core deposits were flat sequentially and up 1 percent
from the third quarter of 2015.
Average commercial transaction deposits of $44 billion were flat
sequentially and decreased 4 percent from the third quarter of 2015. The
year-over-year decline reflected lower interest checking, savings, and
foreign office account balances, partially offset by higher demand
deposit account balances.
Average consumer transaction deposits of $51 billion were flat
sequentially and increased 4 percent from the third quarter of 2015.
Year-over-year growth was driven by higher money market and interest
checking account balances, partially offset by lower savings account
balances.
|
Wholesale Funding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Seq
|
|
Yr/Yr
|
|
Average Wholesale Funding ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates - $100,000 and over
|
|
$
|
2,768
|
|
$
|
2,819
|
|
$
|
2,815
|
|
$
|
3,305
|
|
$
|
2,924
|
|
(2
|
%)
|
|
(5
|
%)
|
|
Other deposits
|
|
|
749
|
|
|
467
|
|
|
-
|
|
|
7
|
|
|
222
|
|
60
|
%
|
|
NM
|
|
Federal funds purchased
|
|
|
446
|
|
|
693
|
|
|
608
|
|
|
1,182
|
|
|
1,978
|
|
(36
|
%)
|
|
(77
|
%)
|
|
Other short-term borrowings
|
|
|
2,171
|
|
|
3,754
|
|
|
3,564
|
|
|
1,675
|
|
|
1,897
|
|
(42
|
%)
|
|
14
|
%
|
|
Long-term debt
|
|
|
16,102
|
|
|
15,351
|
|
|
14,949
|
|
|
15,738
|
|
|
14,664
|
|
5
|
%
|
|
10
|
%
|
|
Total average wholesale funding
|
|
$
|
22,236
|
|
$
|
23,084
|
|
$
|
21,936
|
|
$
|
21,907
|
|
$
|
21,685
|
|
(4
|
%)
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average wholesale funding of $22.2 billion decreased $848 million, or 4
percent, sequentially, and increased $551 million, or 3 percent,
compared with the third quarter of 2015. The sequential decrease in
average wholesale funding was primarily driven by the declines in
short-term borrowings reflecting the decline in interest-earning assets.
The year-over-year increase reflected an increase in long-term debt to
fund the growth in interest-earning assets.
|
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Seq
|
|
Yr/Yr
|
|
Noninterest Income ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposits
|
|
$
|
143
|
|
$
|
138
|
|
$
|
137
|
|
$
|
144
|
|
$
|
145
|
|
4
|
%
|
|
(1
|
%)
|
|
Corporate banking revenue
|
|
|
111
|
|
|
117
|
|
|
102
|
|
|
104
|
|
|
104
|
|
(5
|
%)
|
|
7
|
%
|
|
Mortgage banking net revenue
|
|
|
66
|
|
|
75
|
|
|
78
|
|
|
74
|
|
|
71
|
|
(12
|
%)
|
|
(7
|
%)
|
|
Wealth and asset management revenue
|
|
|
101
|
|
|
101
|
|
|
102
|
|
|
102
|
|
|
103
|
|
-
|
|
|
(2
|
%)
|
|
Card and processing revenue
|
|
|
79
|
|
|
82
|
|
|
79
|
|
|
77
|
|
|
77
|
|
(4
|
%)
|
|
3
|
%
|
|
Other noninterest income
|
|
|
336
|
|
|
80
|
|
|
136
|
|
|
602
|
|
|
213
|
|
NM
|
|
58
|
%
|
|
Securities gains, net
|
|
|
4
|
|
|
6
|
|
|
3
|
|
|
1
|
|
|
-
|
|
(33
|
%)
|
|
100
|
%
|
|
Total noninterest income
|
|
$
|
840
|
|
$
|
599
|
|
$
|
637
|
|
$
|
1,104
|
|
$
|
713
|
|
40
|
%
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income of $840 million increased $241 million sequentially
and increased $127 million compared with prior year results. The
sequential and year-over-year comparisons reflect the impacts described
below.
|
Noninterest Income excluding certain items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
September
|
|
June
|
|
September
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
Seq
|
|
Yr/Yr
|
|
Noninterest Income excluding certain items ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (U.S. GAAP)
|
|
$
|
840
|
|
|
$
|
599
|
|
|
$
|
713
|
|
|
|
|
|
|
Gain from termination and settlement of Vantiv TRA and the
expected obligation to terminate and settle the remaining TRA cash
flows upon exercise of put or call options
|
|
|
(280
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
Gain on sale of a non-branch facility
|
|
|
(11
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
Vantiv warrant valuation
|
|
|
2
|
|
|
|
(19
|
)
|
|
|
(130
|
)
|
|
|
|
|
|
Transfer of certain nonconforming investments under Volcker to HFS
|
|
|
9
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
Valuation of Visa total return swap
|
|
|
12
|
|
|
|
50
|
|
|
|
8
|
|
|
|
|
|
|
Branch / land impairment charge
|
|
|
28
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
Gain on sale of certain branches
|
|
|
-
|
|
|
|
(11
|
)
|
|
|
-
|
|
|
|
|
|
|
Gain on sale of the non-strategic agented bankcard loan portfolio
|
|
|
-
|
|
|
|
(11
|
)
|
|
|
-
|
|
|
|
|
|
|
Securities (gains) / losses
|
|
|
(4
|
)
|
|
|
(6
|
)
|
|
|
-
|
|
|
|
|
|
|
Noninterest income excluding certain items(a)
|
|
$
|
596
|
|
|
$
|
602
|
|
|
$
|
591
|
|
|
(1
|
%)
|
|
1
|
%
|
|
(a) Non-GAAP measure; see discussion of non-GAAP on page 33
|
|
|
|
|
Excluding the items in the table above, noninterest income of $596
million decreased $6 million, or 1 percent, from the previous quarter
and increased $5 million, or 1 percent, from the third quarter of 2015.
The sequential decrease was primarily due to the change in net mortgage
servicing rights (MSR) valuation adjustments and corporate banking
revenue, partially offset by an increase in service charges on deposits.
The year-over-year increase was driven by increases in corporate banking
revenue and card and processing revenue.
Service charges on deposits of $143 million increased 4 percent from the
second quarter of 2016, and decreased 1 percent compared with the same
quarter last year. The sequential increase primarily reflected a 6
percent increase in retail service charges due to seasonally higher
overdraft occurrences, as well as a 3 percent increase in commercial
service charges. The decrease from the third quarter of 2015 was
primarily due to a 6 percent decrease in retail service charges due
lower checking fees driven by a change in product offering.
Corporate banking revenue of $111 million decreased $6 million compared
to the second quarter of 2016 and increased $7 million from the third
quarter of 2015. The sequential comparison reflects decreases in loan
syndication revenue and foreign exchange fees, partially offset by an
increase in institutional sales revenue. The year-over-year increase was
primarily driven by higher institutional sales revenue and loan
syndication revenue, partially offset by lower foreign exchange fees and
interest rate derivative fees.
Mortgage banking net revenue was $66 million in the third quarter of
2016, down $9 million from the second quarter of 2016 and down $5
million from the third quarter of 2015. Originations were $2.9 billion
in the current quarter, increasing 7 percent sequentially and 27 percent
from the same quarter last year. Third quarter 2016 originations
resulted in $61 million of origination fees and gains on loan sales,
compared with $54 million during the previous quarter and $46 million
during the third quarter of 2015. Mortgage servicing fees were $49
million this quarter, $50 million in the second quarter of 2016, and $54
million in the third quarter of 2015. Mortgage banking net revenue is
also affected by net servicing asset valuation adjustments, which
include MSR amortization and MSR valuation adjustments (including
mark-to-market adjustments on free-standing derivatives used to
economically hedge the MSR portfolio). These adjustments resulted in a
negative $44 million in the third quarter of 2016 (reflecting MSR
amortization of $35 million and net MSR valuation adjustments of
negative $9 million); negative $29 million in the second quarter of 2016
(MSR amortization of $35 million and net MSR valuation adjustments of
positive $6 million); and negative $29 million in the third quarter of
2015 (MSR amortization of $37 million and net MSR valuation adjustments
of positive $8 million). The mortgage servicing asset, net of the
valuation reserve, was $619 million at quarter end on a servicing
portfolio of $55 billion.
Wealth and asset management revenue of $101 million was flat from the
second quarter of 2016 and decreased 2 percent from the third quarter of
2015. The year-over-year decline was primarily driven by lower
securities and brokerage fees, partially offset by an increase in
personal asset management fees.
Card and processing revenue of $79 million in the third quarter of 2016
decreased 4 percent sequentially and increased 3 percent from the third
quarter of 2015. The sequential decrease reflected a decline in the
number of actively used cards and lower spend volume. The year-over-year
increase reflected an increase in customer transactions and a higher
number of actively used cards.
Other noninterest income totaled $336 million in the third quarter of
2016, compared with $80 million in the previous quarter and $213 million
in the third quarter of 2015. As previously described, the results
included the adjustments in the table on page 9 with the exception of
securities gains in all comparable periods. Excluding these items, other
noninterest income of $96 million increased approximately $7 million, or
8 percent, from the second quarter of 2016 and increased approximately
$5 million, or 5 percent, from the third quarter of 2015.
Net gains on investment securities were $4 million in the third quarter
of 2016, compared with $6 million in the previous quarter and an
immaterial gain in the third quarter of 2015.
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
% Change
|
|
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Seq
|
|
Yr/Yr
|
|
Noninterest Expense ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and incentives
|
|
$
|
400
|
|
$
|
407
|
|
$
|
403
|
|
$
|
386
|
|
$
|
387
|
|
(2
|
%)
|
|
3
|
%
|
|
Employee benefits
|
|
|
78
|
|
|
85
|
|
|
100
|
|
|
74
|
|
|
72
|
|
(8
|
%)
|
|
8
|
%
|
|
Net occupancy expense
|
|
|
73
|
|
|
75
|
|
|
77
|
|
|
83
|
|
|
77
|
|
(3
|
%)
|
|
(5
|
%)
|
|
Technology and communications
|
|
|
62
|
|
|
60
|
|
|
56
|
|
|
59
|
|
|
56
|
|
3
|
%
|
|
11
|
%
|
|
Equipment expense
|
|
|
29
|
|
|
30
|
|
|
30
|
|
|
32
|
|
|
31
|
|
(3
|
%)
|
|
(6
|
%)
|
|
Card and processing expense
|
|
|
30
|
|
|
37
|
|
|
35
|
|
|
40
|
|
|
40
|
|
(19
|
%)
|
|
(25
|
%)
|
|
Other noninterest expense
|
|
|
301
|
|
|
289
|
|
|
285
|
|
|
289
|
|
|
280
|
|
4
|
%
|
|
8
|
%
|
|
Total noninterest expense
|
|
$
|
973
|
|
$
|
983
|
|
$
|
986
|
|
$
|
963
|
|
$
|
943
|
|
(1
|
%)
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense of $973 million declined $10 million, or 1 percent,
compared with the second quarter of 2016 and increased $30 million, or 3
percent, compared with the third quarter of 2015. The sequential
comparison reflected a decrease in compensation-related expenses and
employee benefits resulting from the impact of the second quarter of
2016 retirement eligibility change, the previously disclosed review of
business units and staff functions, as well as reduced card and
processing expense. The year-over-year increase reflected higher
compensation expense as a result of personnel additions primarily in
risk and compliance and information technology, as well as the change in
provision for unfunded commitments. This increase was partially offset
by a decrease in card and processing expense primarily due to contract
renegotiations and $6 million in executive retirement expense in the
third quarter of 2015.
|
Credit Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Total net losses charged-off ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
($61
|
)
|
|
|
($39
|
)
|
|
|
($46
|
)
|
|
|
($30
|
)
|
|
|
($128
|
)
|
|
|
Commercial mortgage loans
|
|
(2
|
)
|
|
|
(6
|
)
|
|
|
(6
|
)
|
|
|
(3
|
)
|
|
|
(11
|
)
|
|
|
Commercial construction loans
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
Commercial leases
|
|
-
|
|
|
|
(1
|
)
|
|
|
(2
|
)
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
Residential mortgage loans
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
|
(3
|
)
|
|
|
Home equity
|
|
(7
|
)
|
|
|
(6
|
)
|
|
|
(8
|
)
|
|
|
(9
|
)
|
|
|
(9
|
)
|
|
|
Automobile loans
|
|
(9
|
)
|
|
|
(8
|
)
|
|
|
(9
|
)
|
|
|
(9
|
)
|
|
|
(7
|
)
|
|
|
Credit card
|
|
(20
|
)
|
|
|
(21
|
)
|
|
|
(20
|
)
|
|
|
(19
|
)
|
|
|
(21
|
)
|
|
|
Other consumer loans and leases
|
|
(6
|
)
|
|
|
(4
|
)
|
|
|
(3
|
)
|
|
|
(6
|
)
|
|
|
(6
|
)
|
|
Total net losses charged-off
|
|
($107
|
)
|
|
|
($87
|
)
|
|
|
($96
|
)
|
|
|
($80
|
)
|
|
|
($188
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total losses charged-off
|
|
($137
|
)
|
|
|
($105
|
)
|
|
|
($116
|
)
|
|
|
($105
|
)
|
|
|
($209
|
)
|
|
Total recoveries of losses previously charged-off
|
|
30
|
|
|
|
18
|
|
|
|
20
|
|
|
|
25
|
|
|
|
21
|
|
|
Total net losses charged-off
|
|
($107
|
)
|
|
|
($87
|
)
|
|
|
($96
|
)
|
|
|
($80
|
)
|
|
|
($188
|
)
|
|
Ratios (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses charged-off as a percent of average portfolio loans and
leases (excluding held for sale)
|
|
0.45
|
%
|
|
|
0.37
|
%
|
|
|
0.42
|
%
|
|
|
0.34
|
%
|
|
|
0.80
|
%
|
|
|
Commercial
|
|
0.43
|
%
|
|
|
0.32
|
%
|
|
|
0.38
|
%
|
|
|
0.24
|
%
|
|
|
0.99
|
%
|
|
|
Consumer
|
|
0.49
|
%
|
|
|
0.45
|
%
|
|
|
0.48
|
%
|
|
|
0.49
|
%
|
|
|
0.51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs were $107 million, or 45 bps of average portfolio loans
and leases on an annualized basis, in the third quarter of 2016 compared
with net charge-offs of $87 million, or 37 bps, in the second quarter of
2016 and $188 million, or 80 bps, in the third quarter of 2015. Net
charge-offs in the third quarter of 2015 included $102 million related
to the restructuring of a student loan backed commercial credit
originally extended in 2007. Excluding this credit, net charge-offs were
$86 million, or 37 bps, in the third quarter of 2015.
Commercial net charge-offs were $63 million, or 43 bps, and were up $17
million sequentially. The increase was primarily due to higher
charge-offs of C&I loans, which increased by $22 million from the second
quarter of 2016. Commercial real estate net charge-offs were down $4
million from the previous quarter.
Consumer net charge-offs were $44 million, or 49 bps, and were up $3
million sequentially. Compared with the previous quarter, net
charge-offs on residential mortgage loans in the portfolio were flat and
net charge-offs on the home equity portfolio increased $1 million. Net
charge-offs on the auto portfolio were up $1 million and net charge-offs
on credit card loans were down $1 million from the second quarter of
2016. Net charge-offs on other consumer loans of $6 million were up $2
million sequentially.
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Allowance for Credit Losses ($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses, beginning
|
|
$
|
1,299
|
|
|
|
$
|
1,295
|
|
|
|
$
|
1,272
|
|
|
|
$
|
1,261
|
|
|
|
$
|
1,293
|
|
|
Total net losses charged-off
|
|
|
(107
|
)
|
|
|
|
(87
|
)
|
|
|
|
(96
|
)
|
|
|
|
(80
|
)
|
|
|
|
(188
|
)
|
|
Provision for loan and lease losses
|
|
|
80
|
|
|
|
|
91
|
|
|
|
|
119
|
|
|
|
|
91
|
|
|
|
|
156
|
|
|
Allowance for loan and lease losses, ending
|
|
$
|
1,272
|
|
|
|
$
|
1,299
|
|
|
|
$
|
1,295
|
|
|
|
$
|
1,272
|
|
|
|
$
|
1,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for unfunded commitments, beginning
|
|
$
|
151
|
|
|
|
$
|
144
|
|
|
|
$
|
138
|
|
|
|
$
|
134
|
|
|
|
$
|
132
|
|
|
Provision for unfunded commitments
|
|
|
11
|
|
|
|
|
7
|
|
|
|
|
6
|
|
|
|
|
4
|
|
|
|
|
2
|
|
|
Reserve for unfunded commitments, ending
|
|
$
|
162
|
|
|
|
$
|
151
|
|
|
|
$
|
144
|
|
|
|
$
|
138
|
|
|
|
$
|
134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses
|
|
$
|
1,272
|
|
|
|
$
|
1,299
|
|
|
|
$
|
1,295
|
|
|
|
$
|
1,272
|
|
|
|
$
|
1,261
|
|
|
Reserve for unfunded commitments
|
|
|
162
|
|
|
|
|
151
|
|
|
|
|
144
|
|
|
|
|
138
|
|
|
|
|
134
|
|
|
Total allowance for credit losses
|
|
$
|
1,434
|
|
|
|
$
|
1,450
|
|
|
|
$
|
1,439
|
|
|
|
$
|
1,410
|
|
|
|
$
|
1,395
|
|
|
Allowance for loan and lease losses ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a percent of portfolio loans and leases
|
|
|
1.37
|
%
|
|
|
|
1.38
|
%
|
|
|
|
1.38
|
%
|
|
|
|
1.37
|
%
|
|
|
|
1.35
|
%
|
|
As a percent of nonperforming loans and leases(a)
|
|
|
217
|
%
|
|
|
|
188
|
%
|
|
|
|
185
|
%
|
|
|
|
252
|
%
|
|
|
|
275
|
%
|
|
As a percent of nonperforming assets(a)
|
|
|
186
|
%
|
|
|
|
161
|
%
|
|
|
|
157
|
%
|
|
|
|
197
|
%
|
|
|
|
208
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excludes nonaccrual loans in loans held for sale.
|
|
|
Provision for loan and lease losses totaled $80 million in the third
quarter of 2016. The allowance represented 1.37 percent of total
portfolio loans and leases outstanding as of quarter end, compared with
1.38 percent last quarter, and represented 217 percent of nonperforming
loans and leases, and 186 percent of nonperforming assets.
Provision for loan and lease losses decreased $11 million from the
second quarter of 2016 impacted by improving nonperforming loans and
criticized assets and decreased $76 million from the third quarter of
2015 impacted by improving criticized assets. The third quarter of 2015
included a $35 million impact related to the aforementioned student loan
backed commercial credit. The allowance for loan and lease losses
decreased $27 million sequentially. As of September 30, the reserve
allocated to the energy portfolio was approximately 4.95%, down from
approximately 5.97% last quarter.
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
Nonperforming Assets and Delinquent Loans ($ in millions)
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Nonaccrual portfolio loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans
|
|
$
|
220
|
|
|
$
|
254
|
|
|
$
|
278
|
|
|
$
|
82
|
|
|
$
|
47
|
|
|
|
Commercial mortgage loans
|
|
|
31
|
|
|
|
39
|
|
|
|
51
|
|
|
|
56
|
|
|
|
60
|
|
|
|
Commercial construction loans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Commercial leases
|
|
|
-
|
|
|
|
4
|
|
|
|
4
|
|
|
|
-
|
|
|
|
2
|
|
|
|
Residential mortgage loans
|
|
|
19
|
|
|
|
27
|
|
|
|
25
|
|
|
|
28
|
|
|
|
31
|
|
|
|
Home equity
|
|
|
59
|
|
|
|
61
|
|
|
|
61
|
|
|
|
62
|
|
|
|
65
|
|
|
|
|
Total nonaccrual portfolio loans and leases (excludes restructured
loans)
|
|
$
|
329
|
|
|
$
|
385
|
|
|
$
|
419
|
|
|
$
|
228
|
|
|
$
|
205
|
|
|
|
Nonaccrual restructured portfolio commercial loans and leases(b)
|
|
|
194
|
|
|
|
242
|
|
|
|
210
|
|
|
|
203
|
|
|
|
177
|
|
|
|
Nonaccrual restructured portfolio consumer loans and leases
|
|
|
63
|
|
|
|
66
|
|
|
|
72
|
|
|
|
75
|
|
|
|
76
|
|
|
|
|
Total nonaccrual portfolio loans and leases
|
|
$
|
586
|
|
|
$
|
693
|
|
|
$
|
701
|
|
|
$
|
506
|
|
|
$
|
458
|
|
|
Repossessed property
|
|
|
13
|
|
|
|
15
|
|
|
|
17
|
|
|
|
18
|
|
|
|
17
|
|
|
OREO
|
|
|
84
|
|
|
|
97
|
|
|
|
107
|
|
|
|
123
|
|
|
|
131
|
|
|
|
|
Total nonperforming portfolio assets(a)
|
|
$
|
683
|
|
|
$
|
805
|
|
|
$
|
825
|
|
|
$
|
647
|
|
|
$
|
606
|
|
|
Nonaccrual loans held for sale
|
|
|
91
|
|
|
|
20
|
|
|
|
3
|
|
|
|
1
|
|
|
|
1
|
|
|
Nonaccrual restructured loans held for sale
|
|
|
9
|
|
|
|
-
|
|
|
|
2
|
|
|
|
11
|
|
|
|
1
|
|
|
Total nonperforming assets
|
|
$
|
783
|
|
|
$
|
825
|
|
|
$
|
830
|
|
|
$
|
659
|
|
|
$
|
608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured Portfolio Consumer loans and leases (accrual)
|
|
$
|
972
|
|
|
$
|
982
|
|
|
$
|
998
|
|
|
$
|
979
|
|
|
$
|
973
|
|
|
Restructured Portfolio Commercial loans and leases (accrual)(b)
|
|
$
|
408
|
|
|
$
|
431
|
|
|
$
|
461
|
|
|
$
|
491
|
|
|
$
|
571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases 90 days past due
|
|
$
|
76
|
|
|
$
|
65
|
|
|
$
|
73
|
|
|
$
|
75
|
|
|
$
|
70
|
|
|
Nonperforming portfolio loans and leases as a percent of portfolio
loans, leases and other assets, including OREO(a)
|
|
|
0.63
|
%
|
|
|
0.74
|
%
|
|
|
0.75
|
%
|
|
|
0.55
|
%
|
|
|
0.49
|
%
|
|
Nonperforming portfolio assets as a percent of portfolio loans and
leases and OREO(a)
|
|
|
0.73
|
%
|
|
|
0.86
|
%
|
|
|
0.88
|
%
|
|
|
0.70
|
%
|
|
|
0.65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Does not include nonaccrual loans held for sale.
|
|
(b) Excludes $20 million of restructured nonaccrual loans and $7
million of restructured accruing loans as of September 30, 2016,
June 30, 2016, March 31, 2016 and December 31, 2015. Excludes $21
million of restructured nonaccrual loans and $7 million of
restructured accruing loans as of September 30, 2015.
|
Total nonperforming assets, including loans held-for-sale, decreased $42
million, or 5 percent, from the previous quarter to $783 million.
Nonperforming loans (NPLs) at quarter-end decreased $107 million, or 15
percent, from the previous quarter to $586 million or 0.63 percent of
total loans, leases and OREO.
Commercial NPAs decreased $103 million from the second quarter to $499
million, or 0.87 percent of commercial loans, leases and OREO.
Commercial NPLs decreased $94 million from last quarter to $445 million,
or 0.77 percent of commercial loans and leases. C&I NPAs decreased $72
million from the prior quarter to $405 million. Commercial mortgage NPAs
decreased $28 million from the previous quarter to $86 million.
Commercial construction NPAs decreased $2 million from the previous
quarter to $5 million. Commercial lease NPAs were $3 million, down $1
million from the previous quarter. Commercial NPAs included $194 million
of nonaccrual troubled debt restructurings (TDRs), compared with $242
million last quarter.
Consumer NPAs decreased $19 million from the second quarter to $184
million, or 0.52 percent of consumer loans, leases and OREO. Consumer
NPLs decreased $13 million from last quarter to $141 million, or 0.39
percent of consumer loans and leases. Residential mortgage NPAs
decreased $12 million from the second quarter to $57 million. Home
equity NPAs decreased $5 million, sequentially, to $89 million. Consumer
nonaccrual TDRs were $63 million in the third quarter of 2016, compared
with $66 million in the second quarter of 2016.
Third quarter OREO balances included in NPA balances were down $13
million from the second quarter to $84 million, and included $47 million
in commercial OREO and $37 million in consumer OREO. Repossessed
personal property decreased $2 million from the prior quarter to $13
million.
Loans over 90 days past due and still accruing increased $11 million
from the second quarter of 2016 to $76 million. Commercial balances over
90 days past due were $7 million compared with $2 million in the prior
quarter, and consumer balances 90 days past due increased $6 million
from the previous quarter to $69 million. Loans 30-89 days past due of
$205 million were up $9 million from the previous quarter. Commercial
balances 30-89 days past due increased $4 million sequentially to $21
million and consumer balances 30-89 days past due were up $5 million
from the second quarter at $184 million. The above delinquency figures
exclude nonaccruals described previously.
|
Capital and Liquidity Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
September
|
|
June
|
|
March
|
|
December
|
|
September
|
|
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Capital Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total Bancorp shareholders' equity to average assets
|
|
|
11.83
|
%
|
|
|
|
11.60
|
%
|
|
|
|
11.57
|
%
|
|
|
11.26
|
%
|
|
|
|
11.24
|
%
|
|
Tangible equity(a)
|
|
|
9.73
|
%
|
|
|
|
9.59
|
%
|
|
|
|
9.51
|
%
|
|
|
9.55
|
%
|
|
|
|
9.29
|
%
|
|
Tangible common equity (excluding unrealized gains/losses)(a)
|
|
|
8.78
|
%
|
|
|
|
8.64
|
%
|
|
|
|
8.55
|
%
|
|
|
8.59
|
%
|
|
|
|
8.33
|
%
|
|
Tangible common equity (including unrealized gains/losses)(a)
|
|
|
9.24
|
%
|
|
|
|
9.18
|
%
|
|
|
|
8.97
|
%
|
|
|
8.71
|
%
|
|
|
|
8.65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CET1 capital(b)
|
|
|
10.16
|
%
|
|
|
|
9.94
|
%
|
|
|
|
9.81
|
%
|
|
|
9.82
|
%
|
|
|
|
9.40
|
%
|
|
|
Tier I risk-based capital(b)
|
|
|
11.26
|
%
|
|
|
|
11.03
|
%
|
|
|
|
10.91
|
%
|
|
|
10.93
|
%
|
|
|
|
10.49
|
%
|
|
|
Total risk-based capital(b)
|
|
|
14.87
|
%
|
|
|
|
14.66
|
%
|
|
|
|
14.66
|
%
|
|
|
14.13
|
%
|
|
|
|
13.68
|
%
|
|
|
Tier I leverage
|
|
|
9.80
|
%
|
|
|
|
9.64
|
%
|
|
|
|
9.57
|
%
|
|
|
9.54
|
%
|
|
|
|
9.38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CET1 capital (fully phased-in)(a)(b)
|
|
|
10.08
|
%
|
|
|
|
9.86
|
%
|
|
|
|
9.72
|
%
|
|
|
9.72
|
%
|
|
|
|
9.30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share
|
|
$
|
20.44
|
|
|
|
$
|
20.09
|
|
|
|
$
|
19.46
|
|
|
$
|
18.48
|
|
|
|
$
|
18.22
|
|
|
Tangible book value per share(a)
|
|
$
|
17.22
|
|
|
|
$
|
16.93
|
|
|
|
$
|
16.32
|
|
|
$
|
15.39
|
|
|
|
$
|
15.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Modified liquidity coverage ratio (LCR)(c)(d)
|
|
|
115
|
%
|
|
|
|
110
|
%
|
|
|
|
118
|
%
|
|
|
N/A
|
|
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Non-GAAP measure; see discussion of non-GAAP and Reg G.
reconciliation beginning on page 33.
|
|
(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 and liquidity ratios are
estimated.
|
|
(d)
|
The Bancorp became subject to the Modified LCR regulations
effective January 1, 2016.
|
Capital ratios remained strong during the quarter. The CET1 ratio was
10.16 percent, the tangible common equity to tangible assets ratio* was
8.78 percent (excluding unrealized gains/losses), and 9.24 percent
(including unrealized gains/losses). The Tier I risk-based capital ratio
was 11.26 percent, the Total risk-based capital ratio was 14.87 percent,
and the Tier I leverage ratio was 9.80 percent.
Book value per share at September 30, 2016 was $20.44 and tangible book
value per share* was $17.22, compared with the June 30, 2016 book value
per share of $20.09 and tangible book value per share* of $16.93.
On August 5, 2016, Fifth Third initially settled a share repurchase
agreement whereby Fifth Third would purchase $240 million of its
outstanding stock. This reduced third quarter share count by 10.98
million shares. Settlement of the forward contract related to this
agreement is expected to occur on or before November 2, 2016.
* Non-GAAP measure; see discussion of non-GAAP and Reg. G
reconciliation beginning on page 33 in Exhibit 99.1 of 8-K filing dated
10/20/16.
Tax Rate
The effective tax rate was 25.6 percent in the third quarter of 2016
compared with 22.8 percent in the second quarter of 2016 and 26 percent
in the third quarter of 2015. The tax rate in the third quarter of 2016
was impacted by Vantiv-related gains, which were partially offset by an
$8 million tax benefit in connection with certain commercial lease
terminations. The tax rate in the second quarter of 2016 reflected an $8
million tax benefit related to a change in the estimated deductibility
of a prior expense.
Other
On July 27, 2016, Fifth Third Bancorp entered into an agreement with
Vantiv, Inc. 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 $116 million from Vantiv. Under the
agreement, Fifth Third Bancorp terminated and settled certain TRA cash
flows totaling an estimated $331 million. These cash flows were
originally payable to Fifth Third from 2019 - 2035. This sale does not
impact the TRA payment expected to be recognized in the fourth quarter
of 2016 and the fourth quarter of 2017. Fifth Third will also have the
ability to terminate and settle another $394 million of future cash
flows for a total of $171 million dollars payable to Fifth Third in 2017
and 2018 in 8 separate quarterly optional executions, which resulted in
a $163 million pre-tax gain recognized in the third quarter of 2016. For
more detail, see the 8-K dated July 28, 2016.
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 $56.27 on September 30, 2016, our interest in Vantiv was valued at
approximately $2.0 billion. Next month in our 10-Q, we will update our
disclosure of the carrying value of our interest in Vantiv stock, which
was $390 million as of June 30, 2016. 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 warrant to purchase approximately 7.8 million additional
shares in Vantiv which is carried as a derivative asset at a fair value
of $325 million as of September 30, 2016.
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, November 3, 2016 by dialing 855-859-2056 for domestic
access or 404-537-3406 for international access (passcode 83768757#).
Corporate Profile
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of September 30, 2016, the Company
had $143 billion in assets and operates 1,191 full-service Banking
Centers, including 94 Bank Mart® locations, most open seven days a week,
inside select grocery stores and 2,497 ATMs in Ohio, Kentucky, Indiana,
Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North
Carolina. Fifth Third operates four main businesses: Commercial Banking,
Branch Banking, Consumer Lending, and Wealth & Asset Management. 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 September 30,
2016, had $314 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 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 or real
estate market conditions, either nationally or in the states in which
Fifth Third, one or more acquired entities and/or the combined company
do business, weaken or 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 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) losses or adverse impacts on the carrying values
of branches and long-lived assets in connection with their sales or
anticipated sales; (24) inability to achieve expected benefits from
branch consolidations and planned sales within desired timeframes, if at
all; (25) ability to secure confidential information and deliver
products and services through the use of computer systems and
telecommunications networks; and (26) 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.
In this release, we may sometimes provide non-GAAP financial
information. Please note that although non-GAAP financial measures
provide useful insight to analysts, investors and regulators, they
should not be considered in isolation or relied upon as a substitute for
analysis using GAAP measures. We provide GAAP reconciliations for
non-GAAP measures in our earnings release and presentation, both of
which are available in the investor relations section of our website, www.53.com.
Fifth Third Bancorp
Sameer Gokhale (Investors), 513-534-2219
or
Larry Magnesen (Media), 513-534-8055