Fifth Third Bank 2003 Annual Report Download - page 33

Notes to Consolidated Financial Statements
FIFTH THIRD BANCORP AND SUBSIDIARIES
31
10. Short-Term Borrowings
A summary of short-term borrowings and rates at December 31:
($ in millions) 2003 2002 2001
Federal funds purchased:
Balance at year end . . . $ 6,928 4,748 2,544
Rate at year end . . . . . .91% 1.21 1.75
Average outstanding. . $ 7,001 3,262 3,682
Weighted-average
rate . . . . . . . . . . . . 1.14% 1.66 4.21
Maximum month-end
balance. . . . . . . . . . $ 7,768 5,976 6,303
Short-term bank notes:
Balance at year end . . . $ 500 —34
Rate at year end . . . . . 1.05% — 3.57
Average outstanding. . $22 210
Weighted-average
rate . . . . . . . . . . . . 1.06% 3.40 2.13
Maximum month-end
balance. . . . . . . . . . $ 500 34 34
Securities sold under
agreements to repurchase:
Balance at year end . . . $ 5,718 3,924 4,854
Rate at year end . . . . . .74% 1.28 1.76
Average outstanding. . $ 5,289 3,871 5,097
Weighted-average
rate . . . . . . . . . . . . 1.03% 1.72 4.00
Maximum month-end
balance. . . . . . . . . . $ 6,878 4,348 5,189
Other:
Balance at year end . . . $24 151 21
Rate at year end . . . . . .98% 1.11 3.65
Average outstanding. . $61 56 10
Weighted-average
rate . . . . . . . . . . . . 1.19% 1.07 3.98
Maximum month-end
balance. . . . . . . . . . $ 154 151 21
Total short-term
borrowings:
Balance at year end . . . $13,170 8,823 7,453
Rate at year end . . . . . .84% 1.24 1.60
Average outstanding. . $12,373 7,191 8,799
Weighted-average
rate . . . . . . . . . . . . 1.09% 1.69 4.08
Maximum month-end
balance. . . . . . . . . . $14,020 10,134 10,113
Short-term senior notes with maturities ranging from 30 days to
one year can be issued by two subsidiary banks. As of December 31,
2003, one of the subsidiary banks had $500 million of floating rate
senior notes outstanding, due on December 16, 2004. There were
no other short-term senior notes outstanding on either of the two
subsidiary banks as of December 31, 2003.
At December 31, 2003, the Bancorp had issued $4 million in
commercial paper, with unused lines of credit of $96 million
available to support commercial paper transactions and other
corporate requirements.
11. Long-Term Borrowings
A summary of long-term borrowings at December 31:
($ in millions) 2003 2002
Junior subordinated debentures,
8.136%, due 2027 . . . . . . . . . . . . . . . . $ 233 241
Junior subordinated debentures, three-
month LIBOR plus .80%, due 2027 . . . 103 100
Subordinated notes,
6.625%, due 2005 . . . . . . . . . . . . . . . . 104 106
Subordinated notes, 6.75%, due 2005 . . . 261 263
Subordinated notes, years 1-5: 7.75%;
years 6-10: one-month LIBOR plus
1.16%, due 2010 . . . . . . . . . . . . . . . . . 159 163
Subordinated notes, 4.50%, due 2018 . . . 458 —
Medium-term senior notes, 3.375%
due 2008 . . . . . . . . . . . . . . . . . . . . . . . 497 —
Mandatorily redeemable securities,
due 2031 . . . . . . . . . . . . . . . . . . . . . . . 505 —
Federal Home Loan Bank advances. . . . . . 5,094 5,686
Securities sold under agreements
to repurchase . . . . . . . . . . . . . . . . . . . . 825 1,597
Commercial paper backed obligations . . . . 792 —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 23
Total long-term borrowings . . . . . . . . . . . $9,063 8,179
The 8.136% Junior Subordinated Debentures due in 2027 were
issued by the Bancorp to Fifth Third Capital Trust I (FTCT1). The
Bancorp has fully and unconditionally guaranteed all of FTCT1's
obligations under trust preferred securities issued by FTCT1.
The three-month LIBOR plus .80% Junior Subordinated
Debentures due in 2027 were assumed by the Bancorp in
connection with the 2001 Old Kent merger. The obligations were
issued to Old Kent Capital Trust 1 (OKCT1). The Bancorp has
fully and unconditionally guaranteed all of OKCT1's obligations
under trust preferred securities issued by OKCT1.
Upon the early adoption of FIN 46 effective July 1, 2003, the
Bancorp deconsolidated both FTCT1 and OKCT1 resulting in a
recharacterization of the underlying consolidated debt obligations
from the previous trust preferred securities obligations to Junior
Subordinated Debenture obligations. The Junior Subordinated
Debenture obligations both qualify as total capital for regulatory
capital purposes.
The 6.625% Subordinated Notes due in 2005 are unsecured
obligations of a subsidiary bank. Interest is payable semi-annually and
the notes partially qualify as total capital for regulatory capital
purposes.
The 6.75% Subordinated Notes due in 2005 are unsecured
obligations of a subsidiary bank. Interest is payable semi-annually and
the notes partially qualify as total capital for regulatory capital
purposes.
The 7.75% (years 1-5); one-month LIBOR + 1.16% (years 6-10)
Subordinated Notes due 2010 are unsecured obligations of a
subsidiary bank. Interest is payable semi-annually and the notes may
also be redeemed on the semi-annual interest payment date. The
notes qualify as total capital for regulatory capital purposes.
The 4.50% Subordinated Notes due in 2018 are unsecured
obligations of a subsidiary bank. Interest is payable semi-annually
and the notes qualify as total capital for regulatory capital purposes.
The 3.375% Medium-Term Senior Notes due in 2008 are
unsecured obligations of a subsidiary bank with interest payable
semi-annually.