Fifth Third Bank 2004 Annual Report Download - page 41

CONSOLIDATED STATEMENTS OF CASH FLOWS
Fifth Third Bancorp 39
For the Years Ended December 31 ($ in millions) 2004 2003 2002)
Operating Activities
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,525 1,665 1,531)
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 399 246)
Minority interest in net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —20 38)
Cumulative effect of change in accounting principle, net of tax . . . . . . . . . . . . . . . . . . . . —11 —)
Depreciation, amortization and accretion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459 550 338)
Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 110 128)
(Benefit) provision for deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13) 295 253)
Realized securities gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58) (150) (125)
Realized securities gains – non-qualifying hedges on mortgage servicing rights . . . . . . . . . —(3) (86)
Realized securities losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 69 11)
Realized securities losses – non-qualifying hedges on mortgage servicing rights . . . . . . . . —— 53)
Proceeds from sales/transfers of residential mortgage and other loans held for sale . . . . . . 6,824 16,280 9,924)
Net gains on sales of loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (112) (340) (269)
Net gains on divestitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (91) (40) (34)
Increase in residential mortgage and other loans held for sale . . . . . . . . . . . . . . . . . . . . . . (4,788) (10,501) (9,892)
Decrease (increase) in trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259 (37) (18)
Decrease in accrued interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 45 49)
(Increase) decrease in other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (867) (646) 453)
(Decrease) increase in accrued taxes, interest and expenses . . . . . . . . . . . . . . . . . . . . . . . . (26) 253 (114)
(Decrease) increase in other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (73) 135 (276)
Net Cash Provided by Operating Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,505 8,115 2,210)
Investing Activities
Proceeds from sales of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,331 22,522 20,605)
Proceeds from calls, paydowns and maturities of available-for-sale securities . . . . . . . . . . . . . 6,234 9,264 7,481)
Purchases of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,425) (36,123) (32,278)
Proceeds from calls, paydowns and maturities of held-to-maturity securities . . . . . . . . . . . . . 42 18 5)
Purchases of held-to-maturity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (148) (92) (35)
(Increase) decrease in other short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (264) 33 (69)
Increase in loans and leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,749) (10,651) (5,608)
Decrease in operating lease equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 214 —)
Purchases of bank premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (391) (284) (174)
Proceeds from disposal of bank premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 16 14)
Cash received from divestitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 67 55)
Cash acquired in business combination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 ——)
Net Cash Used in Investing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,738) (15,016) (10,004)
Financing Activities
Increase in core deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,327 1,908 4,916)
(Decrease) increase in certificates – $100,000 and over, including foreign office . . . . . . . . . . (2,962) 2,978 1,536)
(Decrease) increase in federal funds purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,238) 2,180 2,204)
Increase (decrease) in short-term bank notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 500 (34)
(Decrease) increase in other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,210) 2,093 (304)
Proceeds from issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,128 1,095 1,143)
Repayment of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,283) (2,159) (635)
Payment of cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (704) (631) (553)
Exercise of stock options, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 63 104)
Purchases of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (987) (655) (720)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —(3) (3)
Net Cash Provided by Financing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435 7,369 7,654)
Increase (Decrease) in Cash and Due from Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202 468 (140)
Cash and Due from Banks at Beginning of Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,359 1,891 2,031)
Cash and Due from Banks at End of Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,561 2,359 1,891)
Cash Payments
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,096 1,112 1,497)
Federal income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 693 432 456)
Significant Noncash Transactions
Business acquisitions:
Fair value of tangible assets acquired (noncash) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 921 ——
Goodwill and identifiable intangible assets acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282 ——
Liabilities assumed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (916) ——
Stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (36) ——
Common stock issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (281) ——
Securitizations:
Capitalized servicing rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9 10
Residual interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 28 —
Securities retained . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 — 25
Reclassification of minority interest to long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 482 —
Consolidation of special purpose entity:
Operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,068 —
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,109 —
Other assets/liabilities, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 25 —
See Notes to Consolidated Financial Statements.