Fifth Third Bank 2009 Annual Report Download - page 104

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
102 Fifth Third Bancorp
Restricted Stock
The total grant-date fair value of restricted stock that vested
during 2009, 2008 and 2007 was $36 million, $24 million and $2
million, respectively. At December 31, 2009, there was $56 million
of stock-based compensation expense related to nonvested
restricted stock not yet recognized. The expense is expected to be
recognized over a remaining weighted-average period of
approximately 2.7 years.
2009 2008 2007
Restricted Stock (shares in thousands) Shares
Weighted-
Average
Grant-Date
Fair Value Shares
Weighted-
Average
Grant-Date
Fair Value Shares
Weighted-
Average
Grant-Date
Fair Value
Nonvested at January 1 5,584 $29.04 3,519 $40.80 2,380 $40.28
Granted 751 4.72 3,157 19.27 1,622 38.19
Vested (870) 40.84 (486) 48.62 (39) 48.28
Forfeited (820) 23.86 (606) 30.72 (444) 40.95
Nonvested at December 31 4,645 $23.85 5,584 $29.04 3,519 $40.80
Other stock-based compensation
Phantom stock units were issued starting in 2009. A total of 300
thousand shares were granted with a weighted average grant price
of $9.88. The phantom stock units vest immediately, however,
none were settled during 2009.
Performance-based awards are payable in stock and cash
contingent upon the Bancorp achieving certain predefined
performance targets over the three-year measurement period.
These performance targets are based on the Bancorp’s
performance relative to a defined peer group. Approximately 1.1
million, 186 thousand and 132 thousand shares of performance-
based awards were granted during 2009, 2008 and 2007,
respectively. These awards were granted at a weighted-average
grant-date fair value of $3.96, $19.18 and $39.89 per share during
2009, 2008 and 2007, respectively.
Performance-based restricted shares are payable in stock and
are contingent upon the Bancorp achieving certain predefined
performance targets over the one-year measurement period. These
performance targets are based on the Bancorp’s performance
relative to a defined peer group. If performance targets are met,
the shares are vested over a three-year period. There were no
performance-based restricted shares granted during 2009.
Approximately 180 thousand and 137 thousand performance-
based restricted shares were granted during 2008 and 2007,
respectively. These shares were granted at a weighted-average
grant-date fair value of $23.39 and $38.27 per share during 2008
and 2007, respectively. The performance condition related to the
performance-based restricted shares was achieved in 2007,
however, it was not achieved in 2008.
The Bancorp sponsors a stock purchase plan that allows
qualifying employees to purchase shares of the Bancorp’s
common stock with a 15% match. During the years ended
December 31, 2009, 2008 and 2007, respectively, there were 1.3
million, 712 thousand and 333 thousand shares purchased by
participants and the Bancorp recognized stock-based
compensation expense of $1 million for 2009 and $2 million for
each of the years ended 2008 and 2007.
25. OTHER NONINTEREST INCOME AND OTHER NONINTEREST EXPENSE
The following presents the major components of other noninterest income and other noninterest expense for the years ended December 31:
($ in millions) 2009 2008 2007
Other noninterest income:
Operating lease income $59 47 32
Cardholder fees 48 58 56
Insurance income 47 36 32
Consumer loan and lease fees 43 51 46
Gain (loss) on loan sales 38 (11) 25
Banking center income 22 31 29
Gain on sale/redemption of Visa, Inc. ownership interests 244 273 -
Loss on sale of OREO (70) (60) (14)
Bank owned life insurance loss (2) (156) (106)
Litigation settlement -76 -
Other 50 18 53
Total $479 363 153
Other noninterest expense:
FDIC insurance and other taxes $269 73 31
Loan and lease expense 234 188 119
Provision for unfunded commitments and letters of credit 99 98 16
Affordable housing investments impairment 83 67 57
Marketing 79 102 84
Professional services fees 63 102 54
Intangible asset amortization 57 56 42
Postal and courier 53 54 52
Insurance 50 30 17
Travel 41 54 54
Operating lease 39 32 22
Recruitment and education 30 33 41
Supplies 25 31 31
OREO expense 24 11 6
Data processing 21 14 14
Visa litigation reserve (73) (99) 172
Other 277 243 177
Total $1,371 1,089 989