Fifth Third Bank 2003 Annual Report Download - page 45

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Notes to Consolidated Financial Statements
FIFTH THIRD BANCORP AND SUBSIDIARIES
43
Bancorp and each of its subsidiary banks as well-capitalized under the
regulatory framework for prompt corrective action.
Capital and risk-based capital and leverage ratios for the Bancorp
and its significant subsidiary banks at December 31:
2003
($ in millions) Amount Ratio
Total Capital (to Risk-Weighted Assets):
Fifth Third Bancorp (Consolidated)
. . . . . . $9,992 13.38%
Fifth Third Bank (Ohio)
. . . . . . . . . . . . . . 5,080 11.59
Fifth Third Bank (Michigan)
. . . . . . . . . . . 3,785 11.03
Tier 1 Capital (to Risk-Weighted Assets):
Fifth Third Bancorp (Consolidated)
. . . . . . 8,168 10.94
Fifth Third Bank (Ohio)
. . . . . . . . . . . . . . 4,280 9.76
Fifth Third Bank (Michigan)
. . . . . . . . . . . 3,237 9.43
Tier 1 Leverage Capital (to Average Assets):
Fifth Third Bancorp (Consolidated)
. . . . . . 8,168 9.11
Fifth Third Bank (Ohio)
. . . . . . . . . . . . . . 4,280 7.57
Fifth Third Bank (Michigan)
. . . . . . . . . . . 3,237 8.50
2002
($ in millions) Amount Ratio
Total Capital (to Risk-Weighted Assets):
Fifth Third Bancorp (Consolidated)
. . . . . . $8,844 13.51%
Fifth Third Bank (Ohio)
. . . . . . . . . . . . . . 4,444 11.68
Fifth Third Bank (Michigan)
. . . . . . . . . . . 3,771 12.00
Tier 1 Capital (to Risk-Weighted Assets):
Fifth Third Bancorp (Consolidated)
. . . . . . 7,656 11.70
Fifth Third Bank (Ohio)
. . . . . . . . . . . . . . 3,592 9.44
Fifth Third Bank (Michigan)
. . . . . . . . . . . 3,269 10.40
Tier 1 Leverage Capital (to Average Assets):
Fifth Third Bancorp (Consolidated)
. . . . . . 7,656 9.73
Fifth Third Bank (Ohio)
. . . . . . . . . . . . . . 3,592 7.93
Fifth Third Bank (Michigan)
. . . . . . . . . . . 3,269 8.58
30. Parent Company Financial Statements
The condensed financial statements of the Bancorp ($ in millions):
Condensed Statements of Income (Parent Company Only)
For the Years Ended December 31 2003 2002 2001
Income
Dividends from Subsidiaries . . . . . $1,262 1,258 215
Interest on Loans to
Subsidiaries . . . . . . . . . . . . . . . 27 32 39
Other . . . . . . . . . . . . . . . . . . . . . 24 —24
Total Income . . . . . . . . . . . . . . . 1,313 1,290 278
Expenses
Interest . . . . . . . . . . . . . . . . . . . . 31 525
Other . . . . . . . . . . . . . . . . . . . . . 2337
Total Expenses. . . . . . . . . . . . . . . 33 862
Income Before Taxes and
Change in Undistributed
Earnings of Subsidiaries . . . . . 1,280 1,282 216
Applicable Income Taxes (Benefit) . 68 (6)
Income Before Change in
Undistributed Earnings of
Subsidiaries . . . . . . . . . . . . . . . 1,274 1,274 222
Increase in Undistributed
Earnings of Subsidiaries . . . . . . 481 361 872
Net Income. . . . . . . . . . . . . . . . . $1,755 1,635 1,094
Condensed Balance Sheets (Parent Company Only)
At December 31 2003 2002
Assets
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . $40 —
Loans to Subsidiaries . . . . . . . . . . . . . . 1,581 1,144
Investment in Subsidiaries . . . . . . . . . . 7,603 7,870
Goodwill . . . . . . . . . . . . . . . . . . . . . . . 137 137
Other Assets . . . . . . . . . . . . . . . . . . . . 59 55
Total Assets . . . . . . . . . . . . . . . . . . . . $9,420 9,206
Liabilities
Commercial Paper . . . . . . . . . . . . . . . . $4 93
Accrued Expenses and Other Liabilities. 187 397
Long-Term Debt . . . . . . . . . . . . . . . . . 704 241
Total Liabilities . . . . . . . . . . . . . . . . . 895 731
Shareholders’ Equity. . . . . . . . . . . . . . 8,525 8,475
Total Liabilities and
Shareholders’ Equity . . . . . . . . . . . . $9,420 9,206
Condensed Statements of Cash Flows (Parent Company Only)
For the Years Ended December 31 2003 2002 2001
Operating Activities
Net Income . . . . . . . . . . . . . . . . . $1,755 1,635 1,094
Adjustments to Reconcile Net
Income to Net Cash Provided
by Operating Activities:
Amortization/Depreciation. . . ——6
Benefit for
Deferred Income Taxes. . . . (4) (3) (8)
Increase in Other Assets . . . . . (39) (29) (3)
Increase in Accrued Expenses
and Other Liabilities . . . . . 54 265
Increase in Undistributed
Earnings of Subsidiaries . . . (481) (361) (872)
Net Cash Provided by
Operating Activities. . . . . . . . . 1,285 1,244 282
Investing Activities
Proceeds from Sales of
Securities Available-for-Sale. . . . —1—
(Increase) Decrease in Loans
to Subsidiaries . . . . . . . . . . . . . (471) (159) 251
Capital Contributions to Subsidiaries —— (255)
Net Cash Used in
Investing Activities . . . . . . . . . (471) (158) (4)
Financing Activities
Decrease in Interest-
Bearing Deposits. . . . . . . . . . . . ——12
(Decrease) Increase in Other
Short-Term Borrowings . . . . . . (89) 72 10
Proceeds from Issuance of
Long-Term Debt . . . . . . . . . . . 497 ——
Payment of Cash Dividends . . . . . (631) (553) (460)
Purchases of Treasury Stock . . . . . (655) (719) (15)
Exercise of Stock Options. . . . . . . 97 104 98
Other . . . . . . . . . . . . . . . . . . . . . 710 71
Net Cash Used in
Financing Activities . . . . . . . . (774) (1,086) (284)
Increase (Decrease) in Cash . . . . 40 — (6)
Cash at Beginning of Year . . . . . ——6
Cash at End of Year . . . . . . . . . . $40 ——