Fifth Third Bank 2004 Annual Report Download - page 58

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
56 Fifth Third Bancorp
19. OTHER NONINTEREST INCOME AND OTHER NONINTEREST EXPENSE
The major components of other noninterest income and other noninterest expense for the years ended December 31:
($ in millions) 2004 2003 2002
Other noninterest income:
Cardholder fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 48 59 51
Consumer loan and lease fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 65 70
Commercial banking revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 178 157
Bank owned life insurance income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 62 62
Insurance income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 28 55
Gain on sale of branches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ——7
Gain on sale of property and casualty insurance product lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ——26
Gain on sale of small merchant processing contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 ——
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 189 152
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 671 581 580
Other noninterest expense:
Marketing and communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 99 99 96
Postal and courier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 49 48
Bankcard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 176 142
Intangible amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 40 37
Franchise and other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 33 30
Loan and lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 106 91
Printing and supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 35 37
Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 35 38
Data processing and operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 97 82
Debt prepayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 20 —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 255 285
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,310 945 886
In addition, approximately 98 thousand shares of perfor-
mance-based awards were granted during 2004. These awards are
payable in stock and cash contingent upon the Bancorp achieving
certain predefi ned performance targets over the three-year measure-
ment period. These performance targets are based on the Bancorp’s
performance relative to a defi ned peer group. The performance-
based awards were granted at an average fair value of $55.75 per
share.
The Bancorp sponsors a Stock Purchase Plan that allows
qualifying employees to purchase shares of the Bancorp’s common
stock at a 15% discount from market price. During the years ended
December 31, 2004, 2003 and 2002, respectively, there were
236,115, 194,133 and 157,308 shares purchased by participants
and the Bancorp recognized compensation expense of $2 million in
2004 and $1 million in both 2003 and 2002.
Outstanding Stock Options Exercisable Stock Options
Exercise Price
per Share
Lowest
Price
Highest
Price
Number of Options
at Year-End
(000’s)
Weighted-Average
Exercise Price
Average Remaining
Contractual Life
(in years)
Number
of Options
(000’s)
Weighted-Average
Exercise Price
Under $11 . . . . . $ 5.06 $10.86 358 $ 7.49 1.24 358 $ 7.49
$11-$25 . . . . . . . 11.06 24.90 4,990 19.06 2.11 4,990 19.06
$25-$40 . . . . . . . 25.22 39.96 5,100 35.81 3.55 5,086 35.81
$40-$55 . . . . . . . 40.17 54.99 19,365 48.37 6.02 15,680 47.65
Over $55 . . . . . . 55.01 68.76 6,349 66.37 7.27 4,798 66.61
All options . . . . . $ 5.06 $68.76 36,162 $45.31 5.30 30,912 $43.57
At December 31, 2004, there were 14.2 million incentive options,
22.0 million non-qualifi ed options, 3.5 million SARs, .1 million
shares reserved for performance unit awards and .6 million restrict-
ed stock awards outstanding and 19.1 million shares available for
grant. Options, SARs and restricted stock outstanding represent
seven percent of the Bancorp’s issued shares at December 31,
2004.
2004 2003 2002
Restricted Stock (shares in thousands) Shares
Average
Market Price
at Grant Shares
Average
Market Price
at Grant Shares
Average
Market Price
at Grant
Outstanding unvested at January 1 . . . . . . . . . . . . . . . . . . . 48 $58.11 18 $62.54 165 $54.73
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18) 59.16 (8) 62.81 (155) 54.23
Canceled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (41) 54.26 ————
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607 53.86 38 56.90 8 62.78
Outstanding unvested at December 31 . . . . . . . . . . . . . . . . 596 $54.01 48 $58.11 18 $62.54