Fifth Third Bank 2009 Annual Report Download - page 44

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
42 Fifth Third Bancorp
Borrowings
Total borrowings declined $11.7 billion from December 31, 2008,
as the result of a combination of balance sheet activity and capital
actions taken by the Bancorp throughout 2009. Portfolio loan
balances declined $7.4 billion from December 31, 2008. This,
coupled with increases in deposits of $5.7 billion from December
31, 2008, resulted in a decrease of the funding position of
approximately $13.1 billion. Further, in the second quarter of
2009, the Processing Business Sale provided $562 million of cash,
and the Bancorp raised an additional $1.0 billion through the
issuance of common equity in the public market, further
decreasing the Bancorp’s funding position needs. As of December
31, 2009 and December 31, 2008, total borrowings as a percentage
of interest-bearing liabilities were 16% and 27%, respectively.
Total short-term borrowings were $1.6 billion at December
31, 2009, down from $10.2 billion at December 31, 2008. The
Bancorp’s overall reduced reliance on short-term funding can be
attributed to declining asset balances and strong deposit
performance.
Long-term debt at December 31, 2009 decreased 23%
compared to December 31, 2008. This was due in part to a $1.0
billion FHLB advance maturing in the first quarter of 2009 and
$1.2 billion in bank notes maturing in the second quarter of 2009,
neither of which were replaced due to the Bancorp’s strong
liquidity position.
Information on the average rates paid on borrowings is
included within the Statements of Income Analysis. Additionally,
refer to the Liquidity Risk Management section for a discussion
on the role of borrowings in the Bancorp’s liquidity management.
TABLE 22: DEPOSITS
A
s of December 31 ($ in millions) 2009 2008 2007 2006 2005
Demand $19,411 15,287 14,404 14,331 14,609
Interest checking 19,935 14,222 15,254 15,993 18,282
Savings 17,898 16,063 15,635 13,181 11,276
Money market 4,431 4,689 6,521 6,584 6,129
Foreign office 2,454 2,144 2,572 1,353 421
Transaction deposits 64,129 52,405 54,386 51,442 50,717
Other time 12,466 14,350 11,440 10,987 9,313
Core deposits 76,595 66,755 65,826 62,429 60,030
Certificates - $100,000 and over 7,700 11,851 6,738 6,628 4,343
Other 10 7 2,881 323 3,061
Total deposits $84,305 78,613 75,445 69,380 67,434
TABLE 23: AVERAGE DEPOSITS
A
s of December 31 ($ in millions) 2009 2008 2007 2006 2005
Demand $16,862 14,017 13,261 13,741 13,868
Interest checking 15,070 14,191 14,820 16,650 18,884
Savings 16,875 16,192 14,836 12,189 10,007
Money market 4,320 6,127 6,308 6,366 5,170
Foreign office 2,108 2,153 1,762 732 248
Transaction deposits 55,235 52,680 50,987 49,678 48,177
Other time 14,103 11,135 10,778 10,500 8,491
Core deposits 69,338 63,815 61,765 60,178 56,668
Certificates - $100,000 and over 10,367 9,531 6,466 5,795 4,001
Other 157 2,067 1,393 2,979 3,719
Total average deposits $79,862 75,413 69,624 68,952 64,388
TABLE 24: BORROWINGS
A
s of December 31 ($ in millions) 2009 2008 2007 2006 2005
Federal funds purchased $182 287 4,427 1,421 5,323
Other short-term borrowings 1,415 9,959 4,747 2,796 4,246
Long-term debt 10,507 13,585 12,857 12,558 15,227
Total borrowings $12,104 23,831 22,031 16,775 24,796