Fifth Third Bank 2004 Annual Report Download - page 15

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FIFTH THIRD BANCORP 2004 ANNUAL REPORT
FINANCIAL CONTENTS
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Selected Financial Data 14
Overview 15
Recent Accounting Standards 16
Critical Accounting Policies 16
Statements of Income Analysis 18
Balance Sheet Analysis 23
Risk Management 25
Controls and Procedures 33
Management’s Assessment as to the Effectiveness of Internal Control over Financial Reporting 34
Reports of Independent Registered Public Accounting Firm 34
Financial Statements
Consolidated Statements of Income 36
Consolidated Balance Sheets 37
Consolidated Statements of Changes in Shareholders’ Equity 38
Consolidated Statements of Cash Flows 39
Notes to Consolidated Financial Statements
Summary of Signifi cant Accounting and Reporting Policies 40 Other Comprehensive Income 54
Securities 45 Common Stock and Treasury Stock 54
Loans and Leases and Reserve for Loan and Lease Losses 46 Stock-Based Compensation 55
Bank Premises and Equipment 47 Other Noninterest Income and Other Noninterest Expense 56
Operating Lease Equipment 47 Sales and Transfers of Loans 57
Goodwill 47 Discontinued Operations 59
Intangible Assets 47 Income Taxes 59
Servicing Rights and Retained Interests 48 Retirement and Benefi t Plans 60
Derivatives 48 Earnings Per Share 61
Short-Term Borrowings 50 Fair Value of Financial Instruments 61
Long-Term Debt 51 Business Combinations 62
Commitments and Contingent Liabilities 52 Certain Regulatory Requirements and Capital Ratios 62
Legal and Regulatory Proceedings 52 Parent Company Financial Statements 63
Guarantees 53 Segments 63
Related Party Transactions 53
Consolidated Ten Year Comparison 65
Directors and Offi cers 66
Corporate Information 67
FORWARD-LOOKING STATEMENTS
This report may contain forward-looking statements about Fifth Third Bancorp and/or the company as combined with acquired entities within the meaning of Sections 27A
of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated
thereunder, that involve inherent risks and uncertainties. This report may contain certain forward-looking statements with respect to the fi nancial condition, results of opera-
tions, plans, objectives, future performance and business of Fifth Third Bancorp and/or the combined company including statements preceded by, followed by or that include
the words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trend,” “objective,” “continue,” “remain” or similar expressions or future or conditional verbs such
as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions. There are a number of important factors that could cause future results to differ materi-
ally from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) competitive pressures
among depository institutions increase signifi cantly; (2) changes in the interest rate environment reduce interest margins; (3) prepayment speeds, loan origination and sale
volumes, charge-offs and loan loss provisions; (4) general economic conditions, either national or in the states in which Fifth Third, one or more acquired entities and/or the
combined company do business, are less favorable than expected; (5) political developments, wars or other hostilities may disrupt or increase volatility in securities markets
or other economic conditions; (6) changes and trends in the securities markets; (7) legislative or regulatory changes or actions, or signifi cant 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; (8) diffi culties in combining the operations of acquired entities and (9) the impact of reputational risk created by the developments discussed above on such matters
as business generation and retention, funding and liquidity. Fifth Third undertakes no obligation to release revisions to these forward-looking statements or refl ect events or
circumstances after the date of this report.